Beech Tree News Network

My daughter sent me a screen shot of a Dave Ramsey quote a couple of weeks ago. It said, “Christmas isn’t a financial emergency. Dipping into your savings or charging gifts on a credit card should not be your plan. It’s in December again this year – be an adult and plan for it.” His comment had been shared thousands of time. Why? Maybe because many of us are guilty – at least a little.

After reading that comment, I searched the Internet for more of his thoughts regarding Christmas. An article of Ramsey’s called “Top 10 Christmas Shopping Mistakes” (http://www.imom.com/dave-ramseys-top-10-christmas-shopping-mistakes/#.W5...) would be worth reading. Of the ten mistakes, the following three caught my attention: 

•Not having a budget written down.

•Using credit cards.

•Forgetting why we celebrate.

I have been guilty of getting caught up in the moment and for that reason, should plan better.

Some other Dave Ramsey quotes that may be associated with Christmas spending include the following:

•Act your wage even at Christmas.

•Beware of impulse buying based on stress, time crunches and fatigue.

•Put up the four walls of your home – shelter, food, clothing, and transportation. Take care of your own household first.

•Christmas is not an emergency. It doesn’t sneak up on you. Lack of planning is not an excuse to use credit cards. (https://www.bing.com/images/search?q=dave+ramsey+christmas+quotes&qpvt=d...)

A 2015 article by Eric McWhinnie entitled “The Average American Plans to Spend This Much on Christmas” reported that: “Overspending is becoming a holiday tradition.” A January 2015 survey found that “47% used credit cards, 9% dipped into their emergency funds, and 7% even tapped their retirement accounts” to pay for their Christmas purchases. McWhinnie also quoted Stuart Ritter, CFP®, a senior financial planner at T. Rowe Price: “It’s always tempting to splurge around the holidays, but parents aren’t doing themselves or their kids any favors by overspending…. Kids will always have long wish lists, and it’s good for them to know that there isn’t enough money in the family budget to cover everything. Challenging them to prioritize their wants and make trade-offs is essential to helping them develop critical financial capabilities.”

If Christmas spending places pressure on you, options are available.  We still have about 13 weeks before Christmas. So saving some money each week would be helpful this year. Also, many use a Christmas club savings account; this is a short-term savings account into which a person puts a set amount of money at designated intervals throughout the year for Christmas expenses. These accounts are usually paid to the person in October, and then savings for the next year begins in November. As Dave Ramsey said, “Keep calm and make a budget. Christmas isn’t an emergency” (https://www.bing.com/images/search?q=dave+ramsey+christmas+quotes&qpvt=d...). Financial planning can reduce pressure and worry, allowing us to celebrate the reason for Christmas.