SOUTH BEND, Ind. (WNDU) – It’s almost one month to the day since gifts were under the trees for Christmas.
While the memory of opening those gifts is priceless, we know that some of those processes are adding up, and it can lead to difficult financial decisions. While the holidays bring out the best of moods, they also bring out credit cards, and those swipes are starting to be felt in a lot of households across the country.
That’s why now is a good time to start reorganizing your financial plan to better suit some of that debt that has added up.
You can start by having those difficult conversations with your family about what is considered essential. Cut out those unnecessary expenses from your budget that don’t cross our minds, like eating out every day or having a subscription to a streaming service you haven’t watched in months. You can also consider having a staycation this spring break instead of that vacation to Disney.
That adjustment comes as those holiday payments continue to each month, even as households across the country struggle to make ends meet.
“Inflation is something that is becoming a household word more than ever before,” said Gregg Murset, CEO of Busy Kid, a finance company that helps educate your child on the importance of spending. “People know what that means, even kids know what that means and things cost more money. It is scary for a lot of us because we were already at the razor’s edge living paycheck to paycheck. And that inflation is really eating into the ability for families to pull that off.”
The holidays are the time to go out and spend a little more than you should, which makes the weeks and months after a financial adjustment for the entire family.
Starting to have these financial discussions with your children can really go a long way. Just being more transparent in your home when it comes to money is the first step. Explain the costs of everyday items that your kids might not always think about. Help them come pay the electricity or gas bill so they can understand what goes into our everyday lives.
It’s all about getting the family on the same page when it comes to spending, which in turn takes some of that pressure off you as the parent from having to stress paycheck to paycheck.
“One of the things a family can do is say, ‘okay, we over did it this holidays and were in a little credit card debt,” Murset said. “Make your family your accountability partners. And I know that’s maybe counter intuitive cause you want to hide everything and pay it off and let them remember the Nike Airs they got, but that doesn’t work. What you need to do is say, ‘hey everyone, this is where we’re at, why don’t we all work together and get out of it quicker?’”
Murset says you can even start with something as simple as showing your kids how gas prices have changed from one day to the next.
And hopefully having your kids tell you to skip takeout this week.
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