LOS ANGELES - Nov. 24, 2015 - PRLog -- Christmas is a wonderful, magical season that brings families together and visions of sugarplums dancing in our heads. But when it comes to money, the holidays can also create a swirling vortex of stressful feelings, including shame, guilt and anxiety. Pegi Burdick, the personal finance coach known as The Financial Whisperer®, specializes in untangling emotions from money. She sees a strong connection between emotions, holiday spending and debt that is growing even stronger in 2015.
“If you're already burdened by debt, as most Americans are, holiday gift-giving can feel more like impending doom than a joyful exchange of love. For parents who struggle to make ends meet all year, there’s a specific set of emotions that develop around the holidays that could easily drive them into even more debt,” explains Burdick.
Burdick notes that Christmas creates intense pressure to meet perceived expectations, such as buying the kids everything on their Christmas lists or preparing an impressive meal with all the trimmings for family and friends on Christmas Eve. “If family funds just aren’t enough to cover expectations, mom and dad may feel shame about not being adequate providers or guilty about disappointing their loved ones. At some point, the pressure gets so intense, the lure of buying on credit can become irresistible,” adds Burdick.
Everybody knows increasing debt is not a good idea, yet by the end of 2015, Americans will have exploded their collective wallets with an astonishing $900 billion in outstanding credit-card debt. That brings the average indebted household's balance to $7,813 — the highest amount since 2008, according to a new analysis by credit card comparison website Card Hub.
So, what’s the way out of this vicious cycle? How can parents resist getting sucked into the vortex of holiday debt? The Financial Whisperer® says, “The trick is to notice and respect the powerful emotions that drive us into holiday debt in the first place, then take back control by doing something other than reaching for your credit cards.”
With a little planning and a slight break from tradition, Burdick believes parents can have fun, make the kids merry AND keep December debt under control. She offers a few ideas to start parents thinking along more financially healthy lines:
Manage expectations: Invite kids to list five things they want most, all under a certain amount. Tell them Santa will surprise them on Christmas morning by delivering two or three items from their lists.
Lose the plastic: Paying for everything with cash during December avoids the nasty shock of 2016 credit-card statements. You also avoid paying for gifts over and over during the year, thanks to interest accruing on card balances.
Give the gift of control: Wrap a store gift card or cash (in an amount you can afford, of course) in a beautiful box for Christmas morning, then shop with your child during post-holiday sales.
Play a game: Organize that time-honored tactic of budget-conscious families: a “Secret Santa” drawing. Each family member picks a name from a hat and buys that person one nice gift below a designated amount.
Contact
Carol Mason
Director, Media Relations
***@thefinancialwhisperer.com
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