Happy Holidays…already?!

As soon as the Halloween candy arrives at our house (and on to my waist line), we are quickly looking ahead towards the holidays. The stores are already decorating for Christmas (what happened to Thanksgiving?). This means my kids start their Santa List and I have to review our holiday budget.

This is a great time to talk to your kids and teens about the difference between NEEDS and WANTS. The holidays are time for them to put some of their WANTS on their gift list. As parents, you will have to set their expectations on what they will actually receive for the holidays since you will have to work within your own budget.

Help your kids put together their own budget for giving holiday gifts. Discuss less expensive alternatives such as making something homemade or spending time with a friend or relative. Consider participating in a “Secret Santa” type gift exchange for a larger family. Show them how to comparison shop, use coupons, and work the sales. Most importantly, show them how to stay within their gift budget. It's the thought behind the gift, not how much it costs.

The holidays are also a time for SHARING. This is the perfect time to talk about charitable giving. Discuss their “sharing” budget. During the year, your kids should be splitting their allowance into 3 parts: spending, saving and sharing. It’s time to check the balance in their sharing account and decide where they would like to give back to the community. A great website to research charities is Charity Navigator.

By reviewing your holiday budget, you will help reduce the financial stress and hopefully you can focus on the giving aspect of the season. It’s a great way to get your kids and teens involved in budgets and sharing.

Enjoy the beginning of the holiday season!