TULSA, Okla. — The holiday season brings joy and festive decorations, but it also brings real anxiety about how to pay for it all.
Financial experts are sharing advice on setting realistic spending expectations to help families avoid holiday debt while still enjoying the season.
"Kids can have very high expectations for the holidays," said Kimberly Palmer from NerdWallet.
Children often dream of expensive toys, electronics and even travel. To prevent this from stressing out your holidays and driving you into debt, Palmer recommends managing those expectations from the start.
"Really it's all about setting their expectations. I have 3 kids myself, and we are just constantly saying not everyone gets everything they want, you know, you can ask for what you want, but you probably won't get everything," Palmer said.
One effective strategy is giving children a specific budget and letting them choose gifts within those limits.
"I love giving my kids a specific budget and having them choose because that way they still have some control," Palmer said.
This approach serves as a valuable financial literacy lesson about learning to live within a budget while giving children some agency in the gift-giving process.
Setting realistic expectations isn't just important for children – adults need to have these conversations too.
"I think it is very important for everyone to be setting the right expectations within their family and anyone else they're exchanging gifts with," said Odysseas Papadimitriou from WalletHub.
Papadimitriou explains that gift-giving pressure often creates a problematic cycle where people feel obligated to match the perceived value of gifts they might receive.
"Why don't we all limit the gifts this year to $30 or $50, whatever the number is so then people do not feel the pressure and knowing that another family member is going to get them an expensive gift so they need to reciprocate," Papadimitriou said.
This approach is especially helpful when more expensive gifts simply aren't in the budget this year.
By setting clear spending limits upfront, families can reduce guilt and financial stress while focusing on what matters most.
"It's also important for people to realize, especially adults, that it is the gesture that matters the most, not the amount that you spend," Papadimitriou said.
The key is having honest conversations about budgets before the holiday shopping begins, allowing everyone to enjoy the season without the burden of financial stress.
"This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy."
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