The Holiday Season in Today's Economy

The Holiday Season, traditionally a time for splurging and generous gift giving, is going to be a challenge for many families this year as they grapple with the new economic realities of job loss , mortgage meltdown and overall financial insecurity.

Parents and kids, bombarded with irresistible television ads, promotions and glittering in-store displays, may need to face the reality of a scaled-back Holiday Season, even though it's difficult to resist impulse buying when it's meant to be the season for giving and receiving.

But this year is not as it was and it may be the perfect time to begin an alternative Holiday celebration, based more on making memories and focusing on the reason for the Season, and less on commercialism and unrestrained spending.

Here are some tips for celebrating in the New Economy

1. Set a budget and stick to it. Your budget should reflect current debt and monthly financial obligations. Make a list of Holiday expenses, including gifts, travel, extra food, entertainment, cards and stamps, and even wrapping paper. Gifts tend to be the largest expense so go through your list and consider no-cost gifts, such as car washing, child care, mowing lawns, or shoveling snow.

Remember, it's a mistake to go deeper into debt when there are inexpensive alternatives to enjoying the Season. Make a hard copy of the budget and take it with you when you go shopping to remind yourself how much you have to spend as you resist persuasive sales pitches and pressure from pleading kids. For more help in creating a budget go to www.moneyinstructor.com.

2. Think creatively to come up with gift ideas within the budget. Consider homemade gifts or the gift of time. Minimize individual gifts and brainstorm a group gift that the whole family can enjoy, such as a trip to the movies, a camping trip, a subscription to Netflix, local basketball team tickets, or a group activity such as ice skating, local theater, or a car trip.

Take girls to a bead shop or do scrap booking with everyone involved in bringing the family history together. Encourage grandparents and other family members to cut back and if they insist, ask them to contribute to a family group gift.

3. Focus on making memories rather than buying gifts that may be discarded as the bigger and better version comes along. Family traditions create those long lasting, meaningful memories, so bake cookies together, play a special board game, sing beloved songs, tell funny stories, cook a unique meal, visit relatives. A very valuable way of teaching kids the real meaning of service is to start a tradition of volunteering at a local shelter, singing at a nursing home, or making an annual donation of toys and clothes you no longer use.

4. Resist competitive gift giving with your ex-spouse. Parents behaving responsibly around each other is the greatest gift they could give their kids who will notice and appreciate it. Set your own limits on spending with or without the cooperation of your ex-spouse.

For many kids, money means the magical card that comes out of mom's wallet or cash obediently coming from an ATM. Parents lead the way in teaching kids respect for money and the value of budgeting, saving, and buying only what you can afford. It's never too early to teach kids that money does not grow on trees and there must be money in the bank before those magic cards and ATMs can be used.

This Season may be the perfect opportunity to teach kids the object lessons regarding money.

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