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If you want to set yourself up on solid financial footing for the new year, Credit Counselling Services of Newfoundland and Labrador says reigning in your holiday spending is a good start.
Executive director Lauren Holwell knows families want to give their kids the world, but she says it’s important to be realistic — especially as many struggle with the cost of living.
She says debt can get out of hand without a plan.
“You don’t want to be paying for Christmas for, you know, six months or a year,” Holwell told CBC Radio’s Newfoundland Morning.
“January is such an expensive month already with… high heat bills and everything else.”
A Business Development Bank of Canada survey published Thursday found each Canadian household is expected to spend an average of $943 on holiday gifts this year.
Credit Counselling Services N.L. executive director Lauren Holwell says Christmas is about making memories, not going into debt. (Credit Counselling Canada)
Holwell said it’s helpful to sit down and create a budget for the holiday season. She also recommends taking stock of monthly bills and other regular expenses before setting aside money for gifts and decorations.
Any leftover money should be spent wisely, she said.
“If you do have yourself in a position where there’s not a lot left over and you know you’re going to have to get into the situation of taking on some debt to get through Christmas, really be mindful of setting a budget of what you can afford,” said Holwell.
Holwell said any credit card debt should be paid off quickly and those who celebrate winter holidays should keep in mind what really matters.
“Christmas is literally one day,” she said.
Although new gaming consoles and bikes might be nice, it’s the time spent with family that creates the real magic, the credit counsellor said.
She also said the holiday season is a good opportunity to have tough but necessary conversations about money management with children.
“We have to remember that we don’t know other people’s situations,” said Holwell. “There’s more to life than that.”
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