Tis the season for impulse buying and credit card debt...

  • Published
  • By Teresa Torelli
  • Airman and Family Readiness Center
ROYAL AIR FORCE LAKENHEATH, England --  Once again, we are getting ready to celebrate another holiday season and with the season comes the 250 million dollars in advertisements and commercials aimed at one thing - our wallets. According to Paul Richard, Director of the National Center for Financial Education, credit card companies spend half of their annual marketing budget on the holiday season. Why is this important? Because after the holiday season has passed and the tree is lying at the curb, the NCFE reports that 70% of Americans are broke and can't even afford to pay their basic living expenses. 

Don't fall into the 'I'll use my credit cards to purchase gifts and pay the balance with my tax return' trap, because it's not going to happen. The secret to getting out of debt is not getting into debt in the first place. During this holiday season follow these basic rules. First, know the difference between wants and needs and second, leave the plastic at home, including your debit card. 

Spending wisely is all about planning and choices. Yes, it is that simple... Make a list of who you are shopping for, look at your budget to determine what you can afford and then divide that amount between the individuals on the list. Do not take your credit card or debit card with you on the day you shop. Instead withdraw and use good old fashioned cash and when it's gone, you are done shopping. If your budget is tight, extend it by being creative. Our family and friends would love something as simple as a holiday card or a family photo which you can take yourself. 

Talk as a family about positive money management. Instead of another toy, open a savings account in your child's name. This family decision can help alleviate the pressure to purchase loads of presents you can't afford or may not need. 

There is no better gift you can give your family this holiday season than financial peace of mind. Positive money management starts with education. To learn more, contact your Airman and Family Readiness Center at 226-3847 or visit MilitaryOneSource at www.militaryonesource.com .