De-Stress Your Holidays with These Smart Spending Tips

De-Stress Your Holidays with These Smart Spending Tips

picture of money

Creating a holiday spending plan and sticking to it can help decrease stress and reduce debt in the new year. (Photo source: Samantha Kennedy)

The holidays are once again upon us.  For many people, it can be a time of stress, frustration, and financial uncertainty as they drive themselves past their limits to try to make everyone happy and everything perfect.

One of the biggest seasonal stressors is spending too much on gifts, food, and home décor.  While it may seem worth it at the time, buyer’s remorse may quickly set in after the New Year when the bills start rolling in.

The most important thing that can be done to help curb holiday spending is to set a budget.

Maybe going all out for Christmas is a family tradition.  Great!  If it is, however, the best thing to do is to make a plan to save the money over the preceding months so it will be available to spend when the time comes.  Spending money that is not in the budget or overusing credit are surefire ways to increase debt and cause strife later.

The holidays should be about family, friends, and the joy of giving.  It should not be a competition to see who can have the biggest, brightest, most fabulous home, gifts, etc.

Retailers and the media work hard to send the message to consumers that the latest this or the greatest that are needed to get the full holiday experience.  However, it is important to resist their messaging and stick to the determined budget.

Including children in any discussions about holiday spending is important.  Let them know that there is only a certain amount of money available to spend on gifts and help them understand the importance of sticking to the budget.  While parents may feel pressured to get everything on their child’s wish list, focusing on a few special items will help families stay on financial track.

Cash and debit cards are the best ways to pay.  If the money is coming directly out of pocket, consumers are more likely to be more cautious before spending.  Use credit cards wisely.  Choosing to purchase with credit in order to receive airline miles or rewards points is fine, but keep close track of all purchases and only charge as much as can comfortably be paid off in its entirety when the bill comes due.  Avoid the pitfall of still paying off this year’s holiday spending next Christmas.

Some of the most meaningful and treasured gifts are those that come from the heart.  Custom, handmade gifts really show a person they are valued.

One large gift for an entire family that everyone can enjoy can also save money over buying something for each individual.  Many people also appreciate a donation in their name to a charity or cause that is near and dear to their hearts.

The holidays do not need to be stressful or break the bank.  By adopting a few smart spending practices, you can enjoy the holidays without the added worry.

For more information on holiday spending and strategies for creating a smart holiday spending plan, please call Samantha Kennedy at (850) 926-3931.

Extension classes are open to everyone regardless of race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national origin, political opinions or affiliations.

VITA 2017

In the early 70’s Gary Iskowitz, was doing graduate work as well as teaching tax law while working for the Internal Revenue Service (IRS) agency. Mr. Iskowitz saw a growing problem with questionable tax preparers who were scamming low-income people in his area. He did not like what he saw! Consequently, he proposed that he train a minimal number (10) of likeminded student volunteers to go into the community to prepare free tax returns for underserved residents. People lined up around the block waiting for them.

The following year, almost 100 students were recruited and trained to prepare free tax returns for low-income residents. The rest, they say, is history!

This college-volunteer effort significantly strengthened the Volunteer Income Tax Assistance (VITA) program. Now, more than 40 years later, VITA is still going strong.

VITA is still designed to promote and support free tax preparation service for the underserved, in both urban and non-urban locations. Service is targeted to low-to-moderate income individuals, persons with disabilities, the elderly, and limited English speaking.

Why? Just as in Gary Iskowitz’ time, this program is an effort to provide both a valuable community service and a powerful learning experience for the participants. Not only does a tax payer get their taxes done for free, the local community benefits from the monies spent by the tax payer.   Plus, the IRS is pleased because citizens are in compliance with federal law.

Volunteers come from the local communities they serve.

If you plan to take advantage of any of the VITA programs this year, be sure to bring the proper documentation. A return cannot be prepared without the appropriate certification.

And know that in an effort to stop fraudulent tax return payments, beginning in 2017, if you claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) on your tax return, the IRS must hold your refund until at least February 15 — even the portion not associated with EITC or ACTC.

What to Bring to Your Local VITA Site:

  • Proof of identification (photo ID)
  • Social Security cards for you, your spouse and dependents on the tax return or a Social Security number verification letter issued by the Social Security Administration
  • An Individual Taxpayer Identification Number (ITIN) assignment letter may be substituted for you, your spouse and your dependents if you do not have a Social Security number
  • Proof of foreign status, if applying for an ITIN
  • Birth dates for you, your spouse and dependents on the tax return
  • Wage and earning statements (Form W-2, W-2G, 1099-R,1099-Misc) from all employers
  • Interest and dividend statements from banks (Forms 1099)
  • A copy of last year’s federal and state returns, if available
  • Proof of bank account routing and account numbers for direct deposit such as a blank check
  • To file taxes electronically on a married-filing-joint tax return, both spouses must be present to sign the required forms
  • Total paid for daycare provider and the daycare provider’s tax identifying number such as their Social Security number or business Employer Identification Number
  • Forms 1095-A, B or C, Affordable Health Care Statements

Start 2017 off right! Being well-organized and getting your information together can save you a lot of time and maybe even money!

 

 

 

Gifts from the Kitchen Make the Holidays Special

cranberry-breadIt is that time of year when we think about giving special gifts to the people in our lives that mean the most to us. Your list might include teachers, neighbors, friends and co-workers. Gifts don’t have to be expensive, it is the thought behind the gesture that means the most to your friends and family. Whoever is on your list this year, think about using your kitchen as grand central for gift making. Gifts of food are heart felt and send a message that you spent time making something special that looks good and tastes yummy. These gifts say thank you in a thoughtful way. Don’t forget to include your kids in the process of cooking and assembling gifts to teach them something about budgeting and enjoying the simple pleasure of gift giving.

The way the gift is presented can be just as important as the food itself. Try to pair up containers with the food gift that will be used after the food is gone. This can be a gift that keeps on giving. Examples are a decorative plate filled with cookies, pie plate filled with your favorite pie or a trifle bowl filled with goodies. You get the idea. Another thought is to put together items that say “sit and take a break” like a loaf of quick bread paired with a pound of coffee, homemade salsa with chips and a favorite beverage. The main goal is to show that you put thought in the gift and spent time preparing the presentation.

With everyone watching their budgets this year, plan ahead to get the creative juices working by purchasing ingredients on sale and found locally. Local products in December include pecans, sweet potatoes, honey, peanuts, persimmons, satsumas and jams and jellies sold at local farmers markets. So get going and unleash your creativity, and give a few gifts from your kitchen and your heart. Have fun making these gifts, and remember to enjoy the process.

One of my favorite festive cookie is the Chocolate Crinkle. The crackle on top with the chocolate and white sugar says it is holiday time. These cookies make a good food gift as they stay firm and will last up to a week. They also freeze well if you need to make ahead of time. Package the gift by placing on a nice festive plate and wrap with clear wrap and decorate with ribbon.

Chocolate Crinkle Cookie

½ cup of shortening

1 2/3 cup sugar

2 tsp vanilla

2 eggs

Two 1 ounce squares of unsweetened chocolate (melted)

2 cups sifted all-purpose flour

2 tsp baking powder

½ tsp salt

1/3 cup of milk

½ cup chopped walnuts or pecans (optional)

Cream together the shortening, sugar and vanilla. Beat in the two eggs then add the melted chocolate.  In another bowl, sift together the flour, baking powder and salt.  Add flour mixture slowly to creamed mixture alternating with the milk until thoroughly blended.  Stir in walnuts. Chill for 3 hours.  Form in 1 – inch balls and roll in confectioners’ sugar. Place on greased cookie sheet 2 to 3 inches apart.  Bake in moderate oven at 350 degrees for 15 minutes. Cool slightly then remove from pan. Makes 48.

They are now ready to put in a container and give to friends. This cookie freezes well.

 

Prepare this nut bread then decorate with wrapping and ribbon. You might include the loaf pan as part of the gift. Include a brick of cream cheese along with a decorative butter knife for a complete package.

Cranberry Nut Bread

Ingredients

2 cups all-purpose flour

1 cup sugar

1 1/2 teaspoons baking powder

¾ teaspoon salt

1/2 teaspoon baking soda

3/4 cup orange juice

1 tablespoon grated orange peel

2 tablespoons shortening

1 egg, well beaten

1 tsp vanilla flavoring

1 1/2 cups Fresh Cranberries, coarsely chopped

1/2 cup chopped nuts (walnuts or pecans)

Directions

Preheat oven to 350 degrees. Grease a 9 x 5-inch loaf pan.  Mix together flour, sugar, baking powder, salt and baking soda in a medium mixing bowl. Stir in orange juice, orange peel, shortening and egg and vanilla. Mix until well blended. Stir in cranberries and nuts. Spread evenly in loaf pan.  Bake for 55 minutes or until a toothpick inserted in the center comes out clean. Cool on a rack for 15 minutes. Remove from pan; cool completely. Makes 1 loaf (16 slices).  Bake loaf in decorative pan as part of the gift. Make sure you cool after cooking then replace in pan and wrap as part of the gift.

 

The Real Sweet Potato Pie

Use local sweet potatoes to promote locally grown produce. After baking, cool then give as a gift in a nice pie plate. Wrap, refrigerate with instructions on reheating for serving. For added effect, bundle with whipped cream and pie knife.

Pre Preparation

Prepare your sweet potatoes for the pie mix. Select 6 – 7 large sweet potatoes and cut in half or quarters. Boil potatoes slowly for about 30 minutes. Let cool. Peel potatoes after they cool. The peel should come off very easy. Measure six cups of sweet potato in a mixing bowl. Use a stand mixer to beat the sweet potatoes and do not scrape off any mixture from beaters. This will contain the stringy part and you do not want it in your pie. Discard the strings.

Ingredients

6 cups cooked mashed sweet potatoes

1 cup evaporated milk

½ cup butter

2 tsp vanilla flavoring

2 tsp nutmeg

1 tsp butter flavoring

4 eggs

1 cup sugar

Mix all ingredients in a stand mixer until well blended. The mixture should be smooth and free of lumps. The mixture will keep in the refrigerator up to a week and may be frozen for future use. Be sure to label with date and amount before placing in freezer.

For the Pie

Place mixture in unbaked pie shell and smooth to the edges. You will need about 2 ½ cups for each 9 inch deep dish pie shell. Mini tart shells may also be used for individual pies. This recipe makes about 3 pies or 12 individual mini pie tarts. Cook at 350 degrees until puffed and browned slightly on top. About 40 minutes.

 

Visit your local farmers market to purchase local nuts, honey, produce and jams and jellies. Be sure to look for locally grown and support our area growers. For additional information about local produce visit: http://wfrec.ifas.ufl.edu/panhandle-produce-pointers/

Small Steps Are the Key to Healthy Change

drinking waterOliver Wendell Holmes, Jr. once said, “The greatest thing in the world is not so much where we are, but in which direction we are moving.” That saying holds true when it comes to our health and our finances.

Health and personal financial issues affect millions of Americans. We struggle with epidemic obesity rates, over 79 million Americans have “pre-diabetes”, debt and bankruptcy filings remain high and millions of Americans live on the “financial edge” with less than the recommended three months’ emergency fund set aside for the future. Problems that develop gradually soon become overwhelming.

Many of us, when faced with the need to change, see our problems as unbeatable and “freeze” instead of moving forward. It is true that there is no easy way to lose weight, gain wealth or become debt-free. Even drastic fixes like weight loss surgery or bankruptcy come with huge risks. So, what is the secret?

According to Former HHS Secretary Tommy G.Thompson, small steps are the key! Mr. Thompson stated, “Consumers don’t need to go to extremes – such as joining a gym or taking part in the latest diet plan – to make improvements to their health. But they do need to get active and eat healthier.” No step is too small to get started and you can never be too early or too late. Examples might include walking during your lunch break, cutting out 100 calories a day, saving the change you accumulate each day or tracking your spending for a month. Anything you do daily over a period of time will soon become a habit, or an “automated” behavior. When your healthy behaviors become automated – no matter how small – you’ve just taken a step toward physical and/or financial wellness.

In the end, your health is in your hands. Set realistic goals, take small steps to reach them, learn from the obstacles and believe that you can achieve. And remember, “In the end, the only people who fail are those who do not try.” – David Viscott

 

Adapted from Small Steps to Health and Wealth, B. O’Neill and K. Ensle, 2013.

Some Things are Too Important to Say Nothing: Talking with Your Children about Money

Child Talking to Parent

Bindaas Madhavi. (2011) Listen to Your Kids.

Most parents would not allow their child to play in the street or to touch a hot stove because parents understand that these actions have consequences and the consequences are serious. If you don’t talk with your child about money and allow them to observe you exhibiting positive financial behaviors, this can also have serious consequences. One indicator of an individual’s financial capabilities is their credit score. A poor credit score can impact an individual’s ability to get a job, secure housing, purchase reliable transportation and access other forms of credit.

According to FINRA Investor Education Foundation State Financial Education Mandates, three years after Georgia, Idaho and Texas implemented a financial education mandate, credit scores of participants improved. In 2014, Florida also voted to adopt financial education into its social studies standards for students in grades K-12 and financial education is now a graduation requirement. While incorporating financial education into schools is an important step, parents still play an important role in financial socialization (establishing what is normal in terms of financial behaviors). In fact, research shows that time preference patterns and delay of gratification patterns are set by age five or before a child reaches kindergarten. Time preference patterns and delay of gratification patterns are often exhibited by adults through savings and budgeting. In a recent study by Cho, Gutter, Kim and Mauldin, the researchers found the effects of financial socialization had significant effect on the financial behaviors of low- to moderate-income adults aged 24-66, indicating that the time preference patterns children develop in youth could last a lifetime.

UF/IFAS Extension Northwest District Family & Consumer Sciences (FCS) Agents know that, as parents, you want to protect your child or children from things that have negative consequences whether it be an inattentive driver, a hot stove, or a poor credit score. One of the things parents can do immediately, to impact what their child is learning about money and how their child is being financially socialized, is to talk with their child about money. Some ideas to get your family conversations about money started are to discuss:

– Wants versus needs

– The grocery budget

– Household expenses

– How your child can earn/save money

If you are still a little nervous about starting the conversation as a result of concerns about your own financial capabilities, contact your local UF/IFAS Extension Office and ask about our Master Money Mentor Program or upcoming financial classes. If you can’t wait for a class, check out these additional resources:

Talking to Children about Money:  http://www.ag.ndsu.edu/pubs/yf/famsci/fs1441.pdf

Are Your Children in the Middle of your Conflict or Divorce? http://goo.gl/lpXwwc

9 Important Communication Skills for Every Relationship  http://edis.ifas.ufl.edu/pdffiles/FY/FY127700.pdf

 

Remember a family conversation about money is one conversation that is too important to wait. Make a money date with your child or children today!

 

References:

Cho, Gutter, Kim and Mauldin. (2012). The Effect of Socialization and Information Source on Financial Management Behaviors among Low-and Moderate-Income Adults. Family & Consumer Science Research Journal. 40(4): 417-430

Council for Economic Education. (2015). Survey of the States. Retrieved 16 March 2015 from http://www.councilforeconed.org/news-information/survey-of-the-states/

National Financial Educators Council. (2013) Financial Education Impact. Retrieved 16 March 2015 from http://www.financialeducatorscouncil.org/financial-literacy-statistics/