Money Smart Kids
Putting Santa on a Budget
If money's tight this year, these four tips will help you get your kids to cut back their wish lists and expectations.
By Janet Bodnar, Editor, Kiplinger's Personal Finance
November 12, 2008
You've been writing that parents should be honest with their kids if they have to cut back on holiday gifts this year because of the financial situation. But how do you broach the subject without getting pushback from the kids, especially younger children who play their ace in the hole: "I'll just ask Santa for it?"
For starters, don't panic and anticipate resistance. Younger children -- certainly preschoolers and even elementary-age kids -- have short memories and may not even recall the great gobs of gifts under last year's tree.
Once you've calmed down, try these other strategies:
Set (or adapt) your own customs. Every family has unique traditions. For example, one family I know makes it a rule that the kids get one special gift from Santa and several smaller ones from Mom and Dad. The kids are happy to accept that (and it makes life a lot easier in this year's straitened circumstances).
Ask the kids to make choices. If you have to cut back, you might as well use this as a learning experience for your children. Once they've made their holiday wish list, have them pare it down to, say, the top five things they most want. Older kids can even compare prices in catalogs or online.
And if they ask for something that's a nonstarter -- because it's too expensive, too dangerous or just not in sync with your family's values -- tell them up front to ax it from the list.
Be creative. Encourage the kids to consider alternative holiday gifts. Perhaps one big family present for everyone -- say, that new flat-screen TV you're willing to splurge on. Or thoughtful gifts of service or time: taking over little Johnny's dog-walking duties for a month, or a one-on-one movie date with Mom or Dad.
Get Santa on your side. Tell the children that you and Santa are a team (his investments have no doubt gone south, too). He's not about to go against your wishes by bringing a gift that you'd rather they not have.
Besides, Santa has to read so many lists that the kids are doing him a favor by keeping it short -- and making more room in his sleigh.
Play your cards right and you might not have to talk about cutting back at all.
You can give teenagers more details about your finances. But these same strategies will work with them, too. In fact, I'm about to try them with my three twentysomething children.
I love to surprise the kids with unique gifts. But this year I'm going to propose that they each get just one present, plus a few smaller items in the hand-knit stockings they've used since they were babies. Not only will it save money, it will also save me time and cut down on holiday shopping stress. I'll let you know how they respond.
Discuss