The Money Couple Minute - Enjoying the Holidays Without Financial Breakdown

The holiday season is meant to be a time of joy, peace, and celebration. But because money plays a role in a lot of the decisions and often times we don’t agree, all that joy and peace is often squelched. The average American spends more than $800 on Christmas each year - whether they can afford it or not. The Spender isn’t affected and the Saver is not so happy. Add in travel costs, extra groceries, and the price of holiday concerts and events and the season can go from merry to miserable in no time.

With a little communication, and a little planning, you can avoid letting shopping stress derail your relationship and your holiday. Here’s how:

1. Set expectations. Take time together now, before the big shopping crunch hits, to talk as a couple about what this holiday season will be like. If your funds are limited, talk about it. Explain to your kids that this will be a more modest holiday. If you normally exchange gifts with extended family and can’t afford to do so this year, let them know now. A simple phone call or e-mail letting them know you’d like to find other ways to celebrate might be a relief to everyone involved.



2. Shop smart. The same rules you apply to sticking with your grocery budget can work for holiday shopping: make a list and stick with it, avoid last-minute runs to the store where you’ll be tempted to grab the first thing you see, and start shopping now so you can be on the lookout for discounts and coupons. And take advantage of the Internet! Not only is it convenient but shopping online can actually save you money by keeping you out of stores where you’ll be tempted to buy more than you need, and by helping you compare prices and find the best deal.



3. Know what stresses you out. While most of us get stressed out during the holidays, we tend to get stressed out for different reasons. Savers get stressed about spending money while Spenders get stressed about getting all their shopping done. Before the holiday rush kicks in, make a plan for reducing the stress of the season by agreeing on a budget, making a firm list of purchases, and agreeing to keep talking and working together no matter what.



4. Work as a team. Even if one of you loves to shop or entertain and the other hates it, it’s essential that you tackle the holidays as a couple. Agree on a budget, talk about spending, plan events and activities together. Not only will you avoid financial frustrations, you’ll have a lot more fun, too.

One last note - give yourselves some grace. You might not stick to your budget perfectly. You might not have the most gorgeous holiday decorations in the neighborhood. You might freak out over the little details of a family gathering. It's okay. Just regroup, keep talking to your partner, and enjoy the wonder of the season.

Money Huddle Tip: During your next Money Huddle, focus on your holiday spending plan. Figure out what you can realistically afford to spend on gifts, travel, entertaining, etc. Will you need to cut back in other areas? Can you rethink some holiday traditions to reduce the financial pressure? Make your plan, then check in once a week or so between now and mid-January to make sure you’re sticking with it and adjusting where you need to.