Invest In Your Life 197 // Inflation and Christmas
We are heading into the holiday season and the buying, spending, and marketing is strong. The Black Friday data shows that in spite of high inflation, people are spending record amounts of money. In this episode, I'm going to talk about why it might be time to take a step back and have an open and honest conversation with your family about Christmas and spending.
It's easy to fall for the pressure to spend and over spend. Many families have used stimulus money to pay down debt or pad their savings. Even with record inflation, many people are in a better position to face it. I'm going to argue that this isn't the time to repeat mistakes of the past and get sucked into a spending frenzy. Talking with your kids about what they want and value might just surprise you and create a better financial reality after the holiday season.
Episode Highlights:
[03:43] We've stepped into this inflationary time healthier than ever. People have paid down debt and put money into savings when they received stimulus money.
[04:30] I'm afraid the margin that people have created is going to get sucked out the window with the holiday spending frenzy. We're spending way more than we planned on and using credit cards to do it.
[05:17] Overspending will get people stuck in the cycle of feeling like they can't make their finances work.
[05:49] We are already under pressure. We don't need more pressure from the holiday season. This is actually a great opportunity to have a conversation with your family and teach your kids about money.
[06:13] Kids need to understand economics and what all these terms mean, so that they can be well versed In the environment that we're facing.
[06:35] With inflation so strong we've been paying more for normal things we need, which means Christmas is going to look different this year.
[07:33] We should focus on the feeling of peace and just being together instead of spending.
[07:57] This would be a great season to have a conversation with your kids and find out what they really want. Usually, they just want to spend time together.
[08:08] We should experience what we want from this holiday season, not buy for it.
[09:39] Have an honest conversation about where you are and start managing expectations. Don't give up the gains you've made.
[11:08] Having conversations with our kids and asking them to partner with us helps them grow up to be healthier adults.
[12:27] Think about some of the most important gifts that you were given in your experience growing up. What probably stands out is that one thing you wanted, not the other gifts.
[16:16] I'm concerned that there's families out there running the risk of falling for the same marketing prey that got them into trouble in the first place.
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