Christmas stockingsJon Helgason/Getty Images/iStockphoto
Thanks for reading our Gen Y money blog, where a recent grad chronicles her real-life journey to becoming a financially independent adult.
Dear Santa: Christmas spending is stressing me out.
Technically, this is my first holiday season as a financially independent adult. I won't be receiving cell phone bill payments as Christmas gifts any more. I'm expected to participate in the office gift exchange. To top it off, my parents are going full Boomer, ditching my sisters and I to go to Australia which means I won't be able to freeload at their place over the holidays.
As such, my tried and true tactics for not spending at Christmas have been eliminated from the playbook. For the past five years, I've been able to either play the student card, the new employee excuse or simply hop on the "family gift" bandwagon. Up until now, my lack of holiday giving has been understandable, if not excusable.
This year, however, the month of December could turn into a full-on spendfest. And while I've set aside a small budget for necessary gifting and travel expenses, I'm really hoping that my friends, family and co-workers will receive their gifts under the precedent that "it's the thought that counts."
With regard to gift giving for friends and family, I'm banking on teamwork to get me through the season. Last year, several of my friends and I vowed to not get each other gifts in light of our mutual financial situations. In my roommate's case, we split a ten-dollar bottle of wine as our gift to each other and toasted to a cheap and cheerful holiday season.
Similarly, my two sisters (both fellow twentysomethings) and I are pooling our resources this year to take on family gift giving. Instead of only pitching in with cash, we're also going to test out our DIY skills to keep each gift unique.
My real holiday spending woes kick in when considering gifts for co-workers. Last Christmas season was the first in which I was working full time and consequently got a taste of the office holiday activities. As I learned, it's a good move professionally to leverage the holidays to show appreciation for my bosses and career mentors. I also learned that this is much easier said than done – it's tough to find a handful of gifts that are thoughtful, professional and don't break the bank.
The next few weeks will be an interesting lesson in spending management. To avoid going overboard, I'll be putting a few extra measures in place to ensure I stay on track.
1) Avoiding using my credit card.
In fact, I'm going to leave it at home as much as possible so that I'm not tempted to use it . Though I'm good at keeping my balance in the black, I'd rather not cause any unnecessary damage during the holidays. I've got enough student debt to worry about – I refuse to let the most wonderful time of the year to build any consumer debt.
2) Making the most of gift certificates and loyalty points.
I'll admit that I've re-gifted before, but this strategy would be for my own assistance. To ease the stress of holiday spending, I'm planning on cashing in my Optimum points and finally using all the Tim Hortons gift cards I've been hoarding. That will free up some cash that I can spend on other gifts.
3) Dedicatedly tracking my spending.
Being on a strict budget, I already keep tabs on where my funds are going so I can plug any leaks and maximize my savings. I'd be lying, however, if I said I didn't miss an expense here or there. I feel like this will be key not only for controlling my holiday purchasing but also for managing my spending habits in the New Year and beyond.
It's not that I'm a Scrooge – I enjoy giving gifts and I wish I could spend big bucks on the important people in my life. My concerns lie in the fact that I've worked hard to get my finances in shape over the past year, and I can't help but selfishly think that it's more financially responsible to dedicate my Christmas dollars to my student loan.
If there's one thing I'm used to as a new grad earning an entry-level salary, it's making little go a long way. Let's see what Christmas miracles I can work with my bank account this year.