How to curb spending on kids' holiday gifts

November 4, 2016
in Kids

Holiday gift giving to children is growing very expensive. So you would be wise to figure out how to rein in the spending before it gets out of hand. Parents spend an average of $422 for a child ages 8 to 14, according to a survey by T. Rowe Price of more than 1,000 parents and their kids. And 34 percent of parents spend $500 or more on holiday presents for their kid. More than half of parents also agreed with the statements: “I try to get everything on my kids’ lists, no matter how much it costs,” and “I never stick to my holiday spending budget.” Between keeping up with the Joneses and wanting to make their kids happy, how do parents get through the holiday season without breaking the bank? Kumiko Ehrmantraut, financial counselor and founder of The Budget Mom blog, said it’s all about having conversations and drawing boundaries. “It’s always important to involve kids in family finance meetings,” she said. They should be “aware that money is not limitless, so keeping them involved along the way helps.” If your child asks for a $400 Xbox, it’s time to set boundaries. Ehrmantraut recommended that you say, “Maybe we can get the smaller item this year...

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