{"id":3910,"date":"2024-02-02T14:26:00","date_gmt":"2024-02-02T18:26:00","guid":{"rendered":"https:\/\/www.skypointfcu.com\/wph\/workarea\/?p=3910"},"modified":"2024-02-02T14:26:25","modified_gmt":"2024-02-02T18:26:25","slug":"5-steps-to-creating-financial-boundaries-during-the-holidays","status":"publish","type":"post","link":"https:\/\/www.skypointfcu.com\/wph\/workarea\/blog\/5-steps-to-creating-financial-boundaries-during-the-holidays\/","title":{"rendered":"5 Steps to Creating Financial Boundaries During the Holidays"},"content":{"rendered":"\n

Marketing ads, family functions and holiday gift-giving culture can make it feel impossible not to spend, or for some, overspend. According to a 2023 survey from NerdWallet<\/a>, around half of Americans (52%) incurred credit card debt when shopping for gifts during the holidays last year, and almost a third (31%) of them still haven\u2019t paid it off.<\/p>\n\n\n\n

While giving can be noble, consider setting boundaries when it comes to lending and spending money during the holidays.<\/p>\n\n\n\n

Step 1: Set 2024 money goals<\/strong><\/p>\n\n\n\n

It can be difficult to rein in your spending during the holidays if you don\u2019t have a reason. Begin the process of mapping out your financial goals<\/a> for 2024 to help avoid shortsightedness while spending. For instance, if you want to make larger payments on your student loan or save for a down payment on a new car next year, overspending during the holidays could set you back.<\/p>\n\n\n\n

\u201cReally be brutally honest about what your financial commitments for January and February [are],\u201d says Yvette Murry, a clinical social worker in Princeton, New Jersey, who helps clients with financial wellness.<\/p>\n\n\n\n

Starting your 2024 budget now can help prevent both unwanted debt<\/a> and regret come the new year.<\/p>\n\n\n\n

Step 2: Practice saying no to requests<\/strong><\/p>\n\n\n\n

Prices are high<\/a>, and requests to borrow money this time of the year might be, too. As much as you may feel obligated to play Santa and give cash to everyone who asks, it could put you in a financial bind come the new year.<\/p>\n\n\n\n

\u201cToo often we do what others want us to do and then find ourselves in a position that really is not best for us or for our families or our mental health,\u201d Murry says.<\/p>\n\n\n\n

When you do get requests beyond your capacity, prepare to say no. For those who aren\u2019t well-versed in \u2018no,\u2019 Traci Williams, a certified financial therapist and psychologist in Atlanta, Georgia, provides an example of how to say it.<\/p>\n\n\n\n

\u201cYou can say something along the lines of, \u2018Thank you so much for thinking of me when you\u2019re planning this. I am unable to do it because it\u2019s outside of my budget,\u2019\u201d Williams says. \u201cSomething that is simple and short like that can help to preserve the relationship.\u201d<\/p>\n\n\n\n

Consider including a \u201clending bucket\u201d in your budget, which comprises an amount that doesn\u2019t throw your finances off. You may also want to stick to only lending what you can afford not to get back.<\/p>\n\n\n\n

Step 3: Understand when it\u2019s OK to feel guilty<\/strong><\/p>\n\n\n\n

Guilt can come when you say no, whether that\u2019s to requests for money, traveling to see family or buying your partner an expensive gift. When we say no, we may feel guilt because of expectations from ourselves, family and society, Williams says.<\/p>\n\n\n\n

\u201cIf you can tune in to what actually is important to you, what your actual values are, and you can hold firm to those, you\u2019re less likely to feel guilt,\u201d she says.<\/p>\n\n\n\n

To deal with those difficult feelings, Williams suggests first identifying them.<\/p>\n\n\n\n

\u201cA lot of people feel things and don\u2019t realize what the actual feeling is,\u201d she says. Once you name the feeling, you can counter it by reinforcing why you made that decision, she adds. For instance, if you have to say no to buying gifts this year, remember the importance of creating financial stability for yourself.<\/p>\n\n\n\n

Step 4: Explore your motivations around holiday spending<\/strong><\/p>\n\n\n\n

Many of our money habits may be driven by subconscious beliefs or motivations, even during the holidays. To understand why you\u2019re making certain financial decisions, Murry suggests asking yourself the motivation behind loaning someone money or spending.<\/p>\n\n\n\n

\u201cAm I seeking to right a wrong? Am I seeking to fulfill a need I had as a child? Ask, \u2018Why I am making those decisions?\u2019\u201d she says.<\/p>\n\n\n\n

Understanding your motivations for spending can help you reinforce boundaries and potentially establish new money beliefs rooted in values you want to emulate. For example, if you realize you overspend on gifts because you were taught by your parents that gifts are the best way to show love, you may decide giving intangible gifts of time or love are more important to you.<\/p>\n\n\n\n

Step 5: Remember holiday pressure is normal<\/strong><\/p>\n\n\n\n

Holiday pressure is real and it can cause us to exceed our budgets<\/a>. Acknowledging that holiday pressure is normal can help you stay focused and within your budget. Williams says to remember you don\u2019t have to do everything, and expecting that of yourself is unrealistic.<\/p>\n\n\n\n

\u201cRecognizing that that pressure exists and that marketing is doing its job can help you to remember that you have to stick to your own goals,\u201d she says.<\/p>\n\n\n\n

This article was written by NerdWallet and was originally published by The Associated Press.<\/em><\/p>\n\n\n\n

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