7 Tips to Help Parents During the Holidays

It's the thought that counts - not how much you spend. Many people have lost site of what the holidays are all about. The holidays are about spending time with your family and friends, reflecting on the past year, and thinking about things you would like to change in the New Year. Here are 7 tips on how to navigate your finances during the holidays.

1. Lower expectations. Many times children's expectations for holiday gifts are obtained from friends, classmates or from watching television. Be realistic - let your children know your financial situation and their price limit for holidays gifts. If they can only get one big gift or one toy let them know as soon as possible. Teach your children that receiving several gifts doesn't mean a better holiday experience; spending time with family is more important than the number of gifts they receive. If your children still believe in Santa, buy several small gifts from the dollar store (gifts that actually cost a dollar). That way they will still believe in Santa and save you money.

2. Be Strong. Don't give in to "puppy dog eyes", whining or complaining from your children. Stay firm with your decision about gifts for the holidays. Giving in to your children sets unrealistic expectations and does not prepare them for the disappointments that occur in the real world.

3. Set a spending limit. Set a spending limit for your holiday shopping including groceries, gifts, etc. This will reduce your chances of going into debt and relieve the stress of having to buying things that are not in your budget. Don't go into debt trying to buy gifts for your children. Do they really need a new desktop or laptop or can they use the one they have until next year.

4. Volunteer. If you children refuse to accept that they cannot get the gifts they want for the holidays take them to a shelter or sign them up to volunteer to help the homeless or sick children to help them change their perspective about life and what's really important. Other children and families have less than they do and they should be appreciative of whatever they have.

5. Follow Traditions. If you family has inexpensive traditions follow them this year to save money such as baking cookies, donating used toys, or going through the neighborhood caroling. This will get your children in the holiday spirit, keep them active and distract them from spending time thinking about all the gifts they want for the holidays.

6. Unexpected Gifts. If you children decide to give gifts to their babysitter, teachers or new friends - don't be alarmed. Be creative and bake deserts or make gifts if you are good with arts and crafts.

7. Consult with your ex. Talk with your ex-spouse to make sure your children are not asking for the same gifts and are not trying to use guilt and as a way to get more gifts from both parents because you are divorced.

Christmas Debt Blues

Hopefully you didn't go overboard and get into debt when shopping for Christmas gifts this year. But if you did, no need to fret. Here are 6 simple steps to help you eliminate that debt.

1. Return any unopened items you purchased for yourself.
2. If you received a gift you don't want donate to charity and write it off on your taxes for 2007 or return the item to the store and use the money you get back to pay towards your debt.
3. Write a list of your monthly expenses and find ways to reduce them, i.e. reduce your cell phone plan, cancel some unwatched premium cable channels, bring your lunch to work, rent movies from netflix instead of going to the movies, etc.
4. Use the extra money obtained from reducing your expenses to pay down debt.
5. Be conscious of how your spend your money during 2007.
6. Buy Christmas gifts throughout the year when items are on sale instead of waiting until December 2007. That way you will save money and won't feel the sting of buying many gifts at one time.
7. Bonus Tip: Buy my book, How to Get Out of Debt: Get an "A" Credit Rating For Free, ISBN 1933949430, as a gift to yourself for less than $20. My book will teach you how to reduce expenses, save money, create a spending plan and eliminate debt. You can purchase it today at Amazon.com, Barnesandnoble.com, Booksamillion.com, and Waldenbooks.com.

Good luck to you in 2007 and I wish you a prosperous New Year!