The pandemic means fewer people may be gathering around the table and fewer gifts may be under the tree this year.
What You Need To Know
- Cutting out smaller presents like stocking stuffers or opting for homemade gifts are some solutions to not break the bank this year
- Experts said budgeting is the key to smart holiday spending
- An investment advisor representative said finances are a personal family matter, one that varies from family to family and should be handled with love and compassion
But ready or not, the holiday season has arrived, which may cause some financial stress for families.
“This holiday season is not going to look like it’s looked in the past. You know, a lot of families are really struggling out there. So, I think setting expectations is going to be a really big point there," said Phil Huff, CRPC.
Huff is the vice president and investment advisor representative at Independence Wealth Advisors near Cleveland.
He sees 2020 as a chance to reflect on the reason for the season.
“The focus needs to be away from the material items, especially in a year like this year, and focus more on connecting with family whether it be, you know, socially distanced in person or through Zoom. It’s really just about the love and the family, not about the material item,” said Huff.
Cutting out smaller presents like stocking stuffers or opting for homemade gifts are some solutions to not break the bank this year.
“It can be humbling, maybe. Just having that conversation of, you know, why are the holidays important. It’s not about getting that new PlayStation 5 or that new toy you really wanted. It’s about spending time with family and understanding, I guess putting it into perspective that, that’s really what matters," said Huff.
Money can be a hard conversation to approach and especially a challenge to discuss with children.
Huff said finances are a personal family matter, one that varies from family to family and should be handled with love and compassion.
“You don’t necessarily need your four-year-old to know how much money is in your 401(k) or how much money the family is spending,” he said. “I think you use your own mindset there and figure out who needs to know.”
Huff believes budgeting is the key to smart holiday spending.
“You may be in a position where you can’t spend like you were in 2018 and 2019, that you need to start carving out certain places, but you don’t really know until you know,” Huff said. “So sitting down figuring out what are we spending. I’d say budgeting is the biggest part of planning right now.”