Quick – do you remember what presents you bought for your loved ones this past Christmas? Do you remember what you received?
Trying to focus on what is important can help the family budget go a long way, said Kay Scott, executive director of Family Life Center, a nonprofit organization dedicated to helping the under-resourced in New Braunfels.
“We have four children, and our kids have been involved in the budget since they were little,” Scott said. “We always told them, ‘It’s the thought that counts’ when it comes to gift-giving and ‘It’s what in a person’s heart that counts.’”
They also focus on traditions and making memories.
“My kids are grown. They are in their 30s, and they still look forward to playing Scattergories at Christmas,” she said. “Everyone has their designated spot on the floor.”
Scott tries to incorporate her own life lessons when counseling younger families and individuals on the importance of setting up a budget, especially as the holidays draw near.
“The first thing we do is get a spiral notebook and write down every day of the month. Then, we write down all the expenses for each day, even if it is a 5-cent piece of gum. We also keep the receipts and write notes on the back of the receipts. We decide if each purchase was a need or a want,” Scott said.
When Scott and her husband tried the technique for 60 days, they discovered they had spent more than $300 on items they didn’t need.
Judy Baker, manager with the Salvation Army, agrees with the journaling technique.
“I give clients a sheet, and we list our needs in order. The top needs are usually housing, food, utilities and medication,” she said. “We write down what we spend for each day, and then we go back and talk about it.”
“I also tell families to pay their bills on the first and the 15th,” Scott said. “Otherwise, if you are paying bills every day, it feels like you are never saving anything.”
Scott recommends that her clients use the envelope system.
“You use one envelope for the auto fund. You use another envelope for rent. You use another envelope for the emergency fund,” she said.
Scott also suggests never going grocery shopping on an empty stomach.
“Write out a menu every day for 30 days, and then go shopping twice a month,” she said. “Then, make sure you shop off of your list and not off of your mind.”
Scott says by doing these things, families will be able to set aside some money for Christmas.
But she also says families should be realistic. Unrealistic expectations can lead to trouble.
“If you cannot afford to buy an Xbox, then don’t go buy an Xbox,” she said. “If we give above our means to our children, we build up expectations and then are not able to meet those expectations. . . . . If Mom and Dad are arguing about the bills after Christmas, what is that teaching our children?”
Scott says it is more important to be teaching kids to be thankful and thrifty.
“Teach them to turn out the lights and to be contributing to the household, if they are grown children,” she said. “I have so many families with grown children still living in the household that are not contributing financially to the household.”
Scott gave her son Dave Ramsey’s Financial Peace University and already her son and his wife were able to save $500 in one month just by scaling back.
Scott says for some families, budgeting is a matter of prioritizing.
“Do you really need cable when you can’t pay the rent? Or, if you cut out cable, you can put that toward Christmas gifts,” she said.
Jennifer Grahmann, teller supervisor at First State Bank, New Braunfels branch, says setting a limit, buying ahead by taking advantage of sales and taking advantage of layaway plans are other ways to plan for a Christmas budget.
Stores such as Sears, which reinstated its layaway plan this past year, and Toys ‘R’ Us, which implemented a layaway plan for large-ticket items, are hoping to help customers out with their holiday shopping.
“I like layaway,” Scott said. “Years ago, that’s how we bought some of our first furniture was through layaway. You didn’t have credit cards. That just put you in debt. We also found a picnic table on the side of the road and picked it up. We painted it, put some placemats on it and made it nice. That was our dining table for years.”
