Last year Kiwis spent an average of $769 each at Christmas. Then, in January, one in five shoppers had post-Christmas regret, feeling anxious about the amount of debt they’d racked up during the festive season.
How can you prevent feeling that financial holiday hangover? Michael Cave has some tips:
- Think about your long-term plans. Keep your goals in the back of your mind. You don’t want to make gains with your finances only to let Christmas spending knock you back.
- Stick to a budget – set a spending limit on gifts, or use Secret Santa so everyone buys fewer gifts.
- Shop online to prevent impulse buying.
- For big-ticket items, sleep on it. Take 24 or 48 hours to reflect and decide whether you really need it; you don’t want to buy it on hire purchase and regret it later.
- Buy with cash so you don’t rack up a credit card debt that you’re still paying off next Christmas.
- Plan ahead by finding deals and offers advertised online. Shopping around early can save you money and prevent last-minute panic buying.
- Time spent together and enjoyable experiences are more memorable than objects, especially for kids.
- Charitable giving can be a win-win choice for those people in your life who already have everything they need. Donations, microloans, and sponsorships are just some of the ways that you can give back to those who need it. As an added bonus for the gift giver, if you’re giving via registered charity, is you can claim a third of your donations back, meaning you have more to give next year! And both the gift giver and gift recipient get that warm, fuzzy feeling.
Have a wonderful summer holiday with the people you love, and all the best for a fantastic year in 2021!