Spending and Saving

Talking Money with Family at the Holidays

Whether this is your first holiday as an independent adult or the cord has long been cut, it’s only natural for parents to nag about finances when everyone’s together. Expect it. No matter your age, you’re still a child to them. But, your goal should be to show them that you’re not the same crazy kid who once blew a semester’s worth of babysitting money on trucker hats (and worse, considered it a fashion “investment”).

We’re talking about showing them financial maturity, which is comprised of three things:

Your parents wouldn’t want to see you go into debt so that you can buy them something fancy.

• Awareness (having a plan and knowing where your money goes)
• Boundaries (sticking to your plan even under pressure)
• Responsibility (not sacrificing the future for the impulse of the moment)

Within that framework, here are six holiday dos and don’ts to help you be financially mature and demonstrate your status as a blooming money maven:

1. DO use the holidays as an opportunity to pick your parents’ brains for financial information and advice.

Are you enrolling in your company’s 401(k) program next year, or, if you already have one, are you thinking about changing up some of the stocks currently in it? Talk to mom and dad about their investment strategies.

2. DON’T overspend in order to look more flush than you are.

Your parents wouldn’t want to see you go into debt so that you can buy them something fancy. Overspending makes you look irresponsible.

3. DO be honest about and up-front about your holiday spending choices.

Talk to your family in advance about how you choose to direct your dollars: Will you only be giving homemade gifts this year? Are you spending your money on travel to visit them instead of on presents?

4. DON’T let others’ holiday spending set the bar for your behavior.

Just because someone else spends a certain amount on a gift for you does not mean that you have to spend the same. We know that it can be embarrassing when someone spends more money on you than you spend in turn, so you might want to think about a strategy to deal with the situation in advance…

Read the rest of this article on the LearnVest blog.

Tags: budgets, family, holidays, spending, Spending and Saving