Chuck Jaffe columnist photo

Chuck Jaffe is a nationally syndicated financial columnist and the host of “MoneyLife with Chuck Jaffe.”

This holiday season, Americans need to have a frank discussion about their finances and their feelings.

Nearly two-thirds of adults have told Bankrate.com that they have felt pressure to overspend during the holidays, with more than half feeling “pushed to splurge” on gifts.

That’s roughly the same percentage of American workers who recently told Bankrate that they are behind where they should be when it comes to retirement savings.

Another, more well-known Bankrate survey — the one that shows that only 40 percent of Americans could pay for an unexpected $1,000 expense from savings — should be balanced against the National Retail Foundation showing that the average consumer expects to pay nearly $1,050 this holiday season.

Something has to give, and it has to be the way most people are giving when they should be saving.

I know that the mere suggestion of changing holiday traditions makes me a humbug in the eyes of people whose family ritual involves piles of presents under the Christmas tree or bathed in the light of Hanukkah candles.

The truth is, however, that they have the story backward.

In fact, the over-spenders are acting like the true villains in Charles Dickens’ holiday classic “A Christmas Carol.”

Prior to his life-changing transformation, Ebenezer Scrooge believes that Christmas is “a time for buying things for which you have no need and no money.” That wastefulness is precisely why he dislikes it.

You can argue, therefore, that what actually brings out the humbug is the spirit of being too generous and spending beyond one’s means.

In making that argument — and yes, that’s what I am doing here — it’s important to note that the post-transformation Scrooge becomes a model of generosity and kindness who “knew how to keep Christmas well” without the slightest hint of overspending.

So maybe the right gift for this holiday season — at a time when 38 million people are willing to boycott gift-giving to save money, according to the same Bankrate poll that measured the pressure of the holidays — is restraint.

I spent the last four years publicly swearing off gift cards — and encouraging readers to do the same — largely because they’re expedient and often given with little forethought, making them a fave of overspenders. Each year since beginning my boycott, during my limited time doing holiday shopping, I have witnessed some parent or grandparent throwing extra gift cards into an overflowing cart at the store, in all cases talking about how it’s “one more thing.”

This year, I’m not swearing off gift cards; I’m hoping instead that people will instead change their focus from adding “one more thing” or just “getting something” to doing the right thing and sticking with gifts — tangible or otherwise — that have meaning.

That means finding ways to remove the pressure and the burden of spending, and potentially relieves the difficulty from saving.

There are plenty of solutions, from Yankee swaps to Secret Santas to white elephants to simply imposing an appropriate budget, but have the talk now, before anyone in your family faces financial pressures later.

Hone in on what’s meaningful to you, both during the holidays and long after.

Helping someone with saving — and establishing an emergency fund rather than encouraging more spending — can be a true gift.

When my children were young, part of their holiday/birthday bounty was a deposit into brokerage accounts I set up for them as babies. As adults, they now manage the small portfolios those deposits grew into.

Their thanks and appreciation has deepened over the years. While they no longer need me involved in managing their accounts, they somehow manage to thank me every time they reach another savings/investing milestone, or whenever their dividend savings helps them cushion the blow of a sudden, unexpected hardship.

Moreover, they never once felt somehow unappreciated or unloved when the gifts were being doled out.

Putting more thought into holiday spending isn’t hard. It’s necessary. It also can be fun. Be creative, helpful and open to change.

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Chuck Jaffe is a nationally syndicated financial columnist and the host of “MoneyLife with Chuck Jaffe.” You can reach him at itschuckjaffe@gmail.com and tune in at moneylifeshow.com.

© 2019, J Features

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