All this month, we’re talking about ways to Be a Friend but when it comes to money matters, where do you draw the line?
CeCe Mitchell with Zion’s Bank Women’s Financial Group addresses four common concerns.
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Friends and money. Are the two incompatible? Economic disparity between friends and family can put your relationships in a predicament. The holidays are about spending time with friends and family, but sometimes spending time with friends and families and the gifts associated with the season can really strain your pocket book.
If you’ve ever picked up the tab for lunch or overspent on a present against your better judgment, you’ve probably wondered, at least fleetingly, if your social life is driving you into debt. Your friends and family can put a lot of pressure on you economically if you’re not willing to admit that dynamic is going on. You have to acknowledge the financial disparity between you, your friends, and your family. It’s painful, but if you don’t, things can get out of control.
The holiday season can be a particularly stressful time if you let the money dynamic enter into your relationships. Overspending, regret and a negativity can overtake your holiday if don’t manage your finances and economic disparity. Many of us make these common mistakes:
Reciprocating
You might have given the neighbors a nice plate of cookies last year, while they gave you a crystal dish. So this year you decide you need to make up for it with a more expensive present. Do not let previous gift giving change your budget. Monitor your own budget, and let the neighbors worry about theirs.
Excessive equalizing
Perhaps you try to spend an equal amount on each of your friends, children, parents, or siblings. But when an item for one person costs the same amount as three items for a different person, you have a problem. To make the gifts look equal, you add two smaller items to the first, then realize you spent more than you intended, but you still buy more to make sure you spend the same amount on everyone. Don’t do this! Stick to your holiday budget!
Procrastination
Whether you shop last minute, or simply forget to mail the gifts to your friends and family across the country, last minute costs add up quickly. Remember that the later you wait the more money you will spend and the more time you will spend waiting in line and searching for the perfect, but sold-out gift. And check with the post office, or online at www.usps.gov, to find out when you need to mail packages so they arrive on time, and don’t end up costing you extra fees in last-minute postage.
Underestimating
Many people have temporary financial blindness when they purchase gifts, and often people have no idea what they really spend on gifts for others, whether at the holiday season or throughout the year as they purchase gifts for birthdays, weddings or anniversaries.
Set realistic expectations for holiday giving. You do not need to overspend to show your family and friends that you love and appreciate them. The perfect present does NOT need to be expensive.
Let your family know you want to plan carefully and stick to your budget this year. This may not sound in the holiday spirit,” but you don’t want the bright greens and reds of the holiday turning to the blues of January and February as you struggle to pay off your holiday debts. The best gift you can give your friends and family is financial stability.
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Zion’s Bank Women’s Financial Group is an excellent money resource for women.
You can find out more, by visiting their website: www.zionsbank.com.
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