Family Law

Family Financial Planning for a Happy Holiday Season

By Ben Stevens

Being in the midst of holiday season, I thought that the following article from child development expert Gary Direnfeld would be helpful to my readers.  He explains that the following family financial planning strategies can help reduce the risk of gift disappointment and overwhelming bills this Christmas season:

1. Be honest and forthright with teenaged children about your financial and employment concerns, without trying to instill fear. Let your children know of your plans to survive the economic meltdown including cutting back on the Christmas gift-giving budget. This may actually put them to ease despite their upset at the impact of the current economic situation too.
2. Inform your children of your budget and ask them for their gift preferences in line with the budget. When expectations are clear on both sides, there is less room for disappointment.
3. Involve your children in cost-cutting decisions and making plans for Christmas celebrations. It just may be that if included, they come up with some good ideas. Being part of the planning process, they will then likely enjoy what you mutually determine.
4. Pool resources. You may not be able to afford that one special gift yourself. However, if you go in on it with a few relatives, it may then be affordable. So the answer may not be how many gifts are given and received, but how many people contribute to that one special present.

Mr. Direnfield further explains

Children typically respond and adjust better to change when they are part of the process. The recession is real and discussing it with them can help them to cope better and you to feel better. Children may be initially disappointed and that would be normal and reasonable. However, they too must learn to live within their means and make the best of life and circumstances. A memorable Christmas may just be one where everyone comes together with a workable plan to enjoy the day.

Source:  "Happy Holiday Season Depends on Family Financial Planning" by Gary Direnfeld, MSW, RSW, published at the MacLean Family Law Group's British Columbia Family Law Blog.

Full post as published by SC Family Law Blog on December 08, 2008 (boomark / email).