Christmas is now a memory, and we hope our readers have made many they will cherish for years to come. For the vast majority, spending has been at least part of the holiday experience. By now thoughts may be turning to pay off credit card balances or replenish savings for those who have made the decision to pay only in cash.
D. Elizabeth Kiss, Ph. D., is a professor of finance at Kansas State University, She recommends paying off holiday spending within the first two months after the New Year. If that is not possible, then making more than the minimum payment is definitely the way to go if you’re able.
“Make a plan now for how to pay for next year’s holiday,” Kiss said.
Take time now to go through your receipts and record each person you purchased a gift for, what it was, and the amount you spent. Kiss started doing this when she was in her 20’s and just married.
“It’s helped me keep track of my holiday spending year to year, she said. “It’s also helped me to see if I’m repeating gifts from year to year.”
As far as how much to spend and on what, Kiss offers no set guidelines. Each of us have our own sets of values and goals, she said. The amount of resources we have available, and our celebrating traditions vary widely too. One thing everyone can do is create a household budget that includes holiday spending. Knowing what you’ve spent in the past, and evaluating that decision can go a long way towards helping determine what that budget should be.
“The value of the gift of time should not be overlooked,” Kiss said. “Nor should homemade gifts or sentimental family heirlooms.”
A couple of K-State Research and Extension resources she recommends that might be of interest are:
Spend Some, Save Some, Share Some: Family Budgeting (MF 3306),
