How to save big this Christmas

The holiday season is upon us, and many parents are beginning the long-awaited and often-dreaded preparation for Christmas shopping. Just ask single mother Liz Scott. After leaving her partner 12 years ago, Scott has been celebrating Christmas alone with her two daughters ever since, and knows the difficulties of trying to get it all done. “As a single parent, you try to pre-plan in advance as best as you can so that you’re not doing it all last minute,” Scott says. “So many Christmases I would get all this stuff and I haven’t had time to wrap, and all of a sudden, I’m wrapping at two in the morning because I wasn’t prepared.” As the pressure to provide day-to-day is already bad enough, it’s easy to see why some parents are wishing that Santa Claus really did exist. This year, however, have no fear. Here are some expert tips to help survive financially this Christmas (or at least until January).

THE PRE-PLAN

Before you begin your trek to the shops, it is always good to have a game plan in mind as to what gifts you’ll be getting for whom. Toronto financial planner Heather Holjevac recommends having your children create a Christmas list months in advance, so you can have a solid idea on what you should buy. “You should have an ongoing list of things they talk about and things that are important to them throughout the year,” she says. “As things go on sale, buy them when there is that opportunity.”

Eva Sachs is the founder of Women in Divorce Financial, a Toronto-based financial agency aiding women through all stages of the divorce process. She notes that paying attention to detail when it comes to your children’s lists can go a long way. “Going shopping with a list, with not only the items, but the price range confined to that list, can be very helpful,” she adds.

THE BUDGET

An effective budgeting strategy not only allows for peace of mind during the stressful holiday season, it can set you up financially at the start of the New Year. Whether you are single or not, parents should be aware of how much they spend per child, as well as how they are spending. “The budget isn’t something to start 11 months before and leave aside, or look at it say, ‘Oh well, I’m over budget,’” Sachs advises. “It’s hard to make up anything that puts you in a deficit position. So you have to make a budget, track it and stick to it. That becomes really important when it comes to holiday time.”

The Joy of (Re)Gift-Giving

Every year,companies roll out the latest and greatest (and increasingly more expensive) gadgets for your kids to enjoy. While they might be fun for them, finding the extra cash to afford these contraptions is not. That is why it is important to reuse and recycle gifts of Christmases past. “With things such as video games, companies like EB Games will exchange the used games,” Holjevac says. “Sometimes those games are pretty expensive, so my son would take games that he’s already used, and recycle them for a new game.”

THE WANTS VS. THE NEEDS

Take a lesson from the late psychologist Abraham Maslow: we tend to confuse where exactly we should place our trivial desires in conjunction with our actual needs. This is especially true at Christmas time. According to Holjevac, there is more to it. “The answer is part philosophical and part financial, because unfortunately, when you are a single parent, you have to have to be realistic with your kids about what they can get,” she says. “It’s funny because money is one of those subjects that we think we’re not supposed to talk about with our kids. But I think the more upfront you are, the more they realize that money is a limited resource. If you explain in simple terms, they can put five things on their list, but Santa may only be able to bring them one or two.”

Sachs agrees. “You have to put needs before wants. The wants probably push forward more at Christmas time rather than at any other time. But you need to be very realistic – if there’s a certain amount you have set aside for Christmas gifts and Christmas entertainment, then you stick to that.

THE GREATEST GIFT OF ALL

While you may feel the pressure of trying to fulfill your child’s every wish, it is important to take a step back and put it into perspective. There are millions of Canadians who will not be able to afford to give their kids a mountain of gifts, a sparkling tree or even a Christmas meal. Holjevac explains the importance of remembering what the holidays are really about. “Simply bring it back and say to your kids, ‘You have a roof over your head.You have food on the table, and you have parents that love you.’ I think that donating things, going to food banks and helping other people makes them understand what is important. But it has to come from the parent, too,” she say. Local non-profit organizations like the Yonge Street Mission and the Salvation Army’s Christmas Kettle campaign raise money through donations for low-income families to be able to enjoy the holidays. Last year, The Salvation Army raised $22 million during the annual fundraiser.

Look at Your Loot

Being mindful of how often you swipe your plastic keeps you more accountable in your budgeting plan. “You need to keep your credit card in your wallet, and say ‘I’m just spending the cash I have,’” Sachs says. “It’s too tempting to put it on a credit card and say ‘I’ll pay for it later on.’ Later on comes and you can’t because you’re over budget.”

Contrary to common belief, Christmas shopping does not have to be a miserable experience. In fact, it can actually be quite enjoyable. That is, if you are making smart spending choices. For Scott, what makes it all worth it is the joy and gratitude that fills her house every Christmas morning. “My favourite memories were when they were younger, coming down and seeing their happy faces from all the toys under the tree. As a mom, that was the best gift for me.”

#Advice #Christmas