Page 24 - San Diego Woman Magazine

HOW TO AVOID

BREAKING THE BANK

This Holiday Season

By Tom Matthews (CFed and Author of “How Money Works”)

The holiday season shopping kickoff is official. While there might be some good deals to be
had, be careful! It’s easy to go overboard and bite off more than you can chew. So how can
you avoid breaking the bank this holiday season?
Tom Mathews has some great tips he would be happy to share. He is the author of the book
“How Money Works” and a Certified Financial Educator (CFEd) (www.howmoneyworks.com)

HIS TIPS:

• Plan ahead: Make a list and check it • Don’t pull out the plastic: Don’t even
twice. Before you head to the store or think of using a credit card unless you are
hop online, make a list of each person 100% sure you can comfortably pay it off
you need to buy for and allocate a certain at the end of the month. The last thing
amount of money for each of them. Don’t anyone needs is to get hit with high-in-
overspend by even a dollar. This is import- terest rates and a blemish on their credit
ant because if you start overspending by a score. Would you rather have the short-
few dollars here and there, it quickly adds term satisfaction of expensive material
up, and you can easily accumulate debt. possessions or the long-term results of
financial freedom and abundance?
• Be honest: Do you really think your
friends and family want to see you go into • Learn from the past: Did you overspend
debt by purchasing them a gift you can’t last holiday season or the year before?
afford? Of course not! There’s no shame in Remember how it set you back financial-
telling people that this year will be a lean ly? Remember how bad it felt when you
holiday season when it comes to exchang- opened up your credit card statement and
ing gifts. People will appreciate your realized you couldn’t pay it all? Revisit that
honesty and attention to your finances. pain and how miserable you felt before
you start shopping this holiday season.
• Don’t get caught up in the moment: It’s
easy to get consumed by all the holiday • Make it a teaching moment: Your kids
décor and spirit of the season. But if your are watching your every move, so play it
shopping cart is overflowing, step back, smart and use the holidays as an opportu-
regroup and make sure you can really nity to teach kids how money works. Even
afford everything you plan to purchase. parents who have failed to reach their
While your spouse might really like that financial dreams can still teach their kids
$1,000 necklace or expensive set of golf important lessons about money during
clubs, is that really the smartest move if the holiday season.
you don’t have the money?
• Focus on the real meaning of the holi-
• Be wary of huge savings: Black Friday, days: Exchanging gifts is a nice tradition,
Cyber Monday, and the rest of the holiday and there’s nothing wrong with doing
shopping season offers some incredible so responsibly. This year, make time to
deals on everything from electronics to jew- focus on the real meaning of the holiday
elry and more, but don’t fall for marketing season, for example, volunteer at a local
campaigns that make you feel as if you’re soup kitchen. Donate a gently used toy to
getting a great deal when you’re really not your favorite children’s charity. Focus on
(i.e., buy it today – pay for it tomorrow, all spreading peace, love, kindness, and joy
sales final). Always read the fine print. that will have a lasting impact on people.

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