Money Matters: Your Path to Financial Wellness


The holiday season is upon us. It is all too common for people to splurge on extensive gift lists, holiday decorating and entertaining. If you are not careful, overspending during the holidays can get you off track with your financial goals. Here are tips for staying above water during the holidays.

1)     Pay the bills first. Before you begin holiday shopping, set aside the money for your upcoming bills. This is especially important in December as some employers pay their employees early because of the holiday. Overspending and getting behind on your bills in January can create financial problems that can take months to solve.

2)     Leave the credit card at home. It is tempting to give in to impulse buys and spend more than planned when a credit card is handy. Beware of the invitation to apply for department store credit cards. Retail merchants routinely invite you to apply for their credit cards to save 10-20 percent on a purchase for which you planned to pay cash. Keep in mind: if you do not promptly pay the balance in full, what you pay in interest can quickly add up to more than the attractive discount offer. 

3)     Stick to your budget. Create a gift list that fits within your budget and stick to it. It is easy to get caught up in the idea of getting a “great deal.” Before you know it, you can spend much more than planned. 

4)     Limit your gift-giving. Don’t feel pressured to buy gifts for everyone you know. If you have a large family or group of co-workers, put everyone’s name in a hat and draw names. You can then buy one reasonably priced gift instead of multiple gifts. 

5)     Keep it simple. Choose gifts that are meaningful rather than expensive. A nice card or a baked treat can go a long way in expressing your appreciation. Substitute elaborate holiday parties with inexpensive entertainment at home, such as a neighborhood potluck dinner. 

For more financial literacy tips and resources, visit www.nctreasurer.com/FinancialLiteracy