Expert tips to ease financial pressure and avoid holiday overspending
Summarize this article with:
Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.NEW YORK (AP) — Are you feeling overwhelmed by the pressure to spend money on gifts, parties, and travel this holiday season?Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The job market is tough, student loan and credit card debt are rising, and prices for many items remain high due to inflation. If you’re feeling financially strained, know that you’re not the only one feeling that way, said Lindsay Bryan-Podvin, a financial therapist and host of the Mind Money Balance podcast.To avoid putting additional pressure on your finances, use the the holidays as a time to be extra-mindful of how you spend. Remember that spending money isn’t the only way to show your love to your friends and family.“We add on all of the years of nostalgia and pressure that we put on the holidays to meet some sort of picture-perfect version,” Bryan-Podvin said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.From setting a budget to creating your own traditions, here are expert recommendations to avoid financial stress this holiday season:Start with a budgetWhat is marketed as “the most wonderful time of the year” can quickly become stressful, Jennifer Seitz, director of education at family finance app Greenlight, said. Setting a budget can help you avoid overspending on gifts, decorations, or any other holiday expenses.“Be sure to include your travel, your shipping, your seasonal tipping, knowing what you plan to spend in each category and then having a cap in place can make it easier to avoid debt in January,” Seitz said.While having a budget is the first step, sticking to it is equally essential.Bryan-Podvin also recommended that you include your regular debt payments in your holiday budget. That way, you avoid falling behind or acquiring more debt.Shop around for the best dealsWhen you’re doing your holiday gift shopping, look for sales, coupons or other holiday discounts so you can reduce your overall costs, said Trae Bodge, a shopping expert.“I’m always looking for maybe a coupon code so I can save a certain percentage off, or I can earn cash back, or I can get a free shipping offer. I really believe in those tools and use them every single time I shop,” Bodge said.Bodge also recommends you try finding deals with browser extensions such as PayPal Honey and Rakuten.Decide what matters most to youThe holidays are the season of giving, but spending too much money and energy can have adverse effects on your mental health. Deciding what you care about most can help you avoid financial stress.Bryan-Podvin recommends that you write down your holiday expenses: travel, celebrations, gifts, etc. Then ask yourself if buying or participating in all of those activities and costs feels good.“That helps you prioritize what are the things that are most important to you this holiday season,” she said.While many people equate how much they spend on gifts or how many events they attend with how much they care for their loved ones, that is not the best way to approach the holiday season if you’re financially strained.Don’t be afraid to say noBetween work parties, family functions and gatherings with friends, the holiday season can quickly become overwhelming both emotionally and financially. If you’re feeling stressed, don’t be afraid to place a boundary and say no to an event or a gift exchange.“Most people who you say a boundary to are going to understand and (some) are going to be relieved,” Bryan-Podvin said.Being open about your money can be difficult, but sharing if you are struggling with debt or other financial issues can help family and friends understand that they should prioritize low-cost gifts or activities.Create your own traditionsIn recent years, Seitz has noticed a shift away from spending money on goods and more of a focus on creating meaningful experiences with family.“I think it’s really important for families to create alternative forms of joy that aren’t necessarily tied to buying. Kids often remember those memories and those traditions, most of all,” Seitz said.New ways of celebrating don’t have to include a greater expense, they can be as simple as organizing a pancake-making morning with the entire family, playing a new board game, or doing a homemade gift exchange.__The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.