The holiday season seems to be all about spending and giving, with little regard for savvy budgeting or smart financial planning. However, the holidays are also full of lessons about financial literacy.
1. Family is the most important thing.
More than finding the perfect gift or making things ‘perfect’ this holiday season people really want to be surrounded by family and friends. While there may be awkward moments, or stress involved with some family gatherings, in the end what we crave most is time to connect to those we love.
FinLit Lesson: Spending isn’t essential to have a lovely holiday. What is most valuable to your family is you, but in the event that you shouldn’t be around life insurance offers some measure of comfort.
2. Money is a family matter.
The holidays offer tons of opportunities to discuss personal finance with your children. Whether you’re discussing the budget for holiday shopping or talking about the new year’s budget together.
While some family’s consider money a taboo topic using your own experience and real money to teach your kids about the value of a dollar is the best way to pass on smart money management.
FinLit Lesson: Teaching your kid’s financial literacy is an important part of being a parent. Not sure where to start? Consider giving an allowance or allowing them to track an investment.
3. Be prepared for the unexpected.
Inevitably no matter how well you plan the holiday season is full of surprises. Whether it’s a gift that doesn’t arrive on time, a flight that gets delayed, or getting the flu on Christmas; the holidays can bring some unexpected and unwelcome challenges. Being prepared for emergencies with a little good humor, backup gifts and plans, and little extra cash is always a good idea.
FinLit Lesson: Be prepared for emergencies year-round with a healthy emergency fund. If you don’t have one in place make plans to beef up your emergency fund in 2013. Here are three tips for being prepared for emergencies.
4. Planning is the key to success.
To have a less stressful holiday planning is essential. Making lists, shopping ahead of time, or simplifying your holiday will help keep stress levels down and make your holiday more fun.
FinLit Lesson: Planning is also the key to success when it comes to personal finance. Planning ahead by budgeting, looking at long-term goals, and making sure you plan for short-term expenses as well will make a huge impact on your bottom line.
5. Giving back is part of the season.
Giving back is a cornerstone of many families holidays. Adopting a family, buying gifts for Toys for Tots, and making a yearly donation are all ways in which we give back at the holidays.
FinLit Lesson: Giving back isn’t just for the holidays. It’s a big part of personal finance for many families throughout the year. Aside from the reason, there is also a bonus tax deduction for non-profits.
What are some money lessons you’ve learned from the holidays?
Kelly
Disclsoure:Post presented by Genworth Financial, all opinions are my own.
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