The Money Couple Minute - No Holiday Headaches

For most couples, the holidays bring with them all kinds of financial expectations. And expectations almost always lead to miscommunication.

We find that regardless of a couples' income, holiday spending can quickly become a battlefield. One of you spends too much, one of you spends too little. Someone splurges when they should have skimped, someone saves when they should have shopped.

The key to making it through the holidays with your sanity-and your budget-intact is to talk through those expectations and make a plan for how you will deal with money during this season. Here's how:

Start now. Don't wait until you're on your way to the mall to talk about how much you can spend. Take an afternoon or an evening to sit down with your finances and talk about what you can afford to spend this year. Know what you can do and plan accordingly.

Cut your list. Take an honest look at your gift list. How many of those gifts do you buy out of obligation? If you've got a limited budget for gifts, don't feel like you have to go all out on co-workers or distant relatives. Are there people who would be just as happy with a card or a homemade treat? Remember, it really is the thought that counts.

Set a dollar limit for each gift. Again, do this now, at home, with a realistic picture of your finances in front of you. Do some research to find the best deals before you hit the stores or order something online. (Websites like www.pricegrabber.com and www.bizrate.com help you compare prices for all kinds of items.) Know what things actually cost so your gift budget reflects reality.

Share the shopping. If one person has to find all the gifts on your list, he or she is bound to get tired. And that's when overspending can cut through all your good intentions. Divvy up your gift list or make a date out of finding meaningful presents for the people you love.

Get creative. If you have a big family, consider a few group gifts. Maybe you and your siblings can pitch in on one great present for your parents or all the cousins can contribute to a special gift for Grandma and Grandpa. Draw names so each person only needs to buy one gift. Decide to give only handmade gifts. (Go to www.familyfun.com for great gift kids can make for grandparents, teachers, siblings, and friends.)

Have a cow. Consider a charitable donation to an organization such as Compassion International (www.compassion.com), World Vision (www.worldvision.org) or www.ADRA.org, where you can purchase a cow, a goat, school supplies, vegetable seeds, or other goods that will change the life of a third-world family. At www.kiva.org, a $25 gift helps fund microloans for small businesses in impoverished areas of the world.

Check in. Plan on one or two conversations a week to make sure you're staying on track with your spending and make adjustments as needed. With a little planning and plenty of clear financial communication, you can make sure that the only surprises this season are under your tree!