Retailers and their marketing arms are excellent at convincing parents to spend more and more each Christmas, and those who fall for the trap may be doing so at the expense of their future. Short-time financial impact aside, blowing big money on presents year after year eats away at savings potential for your kids’ college funds, as well as your own retirement.
In an open letter to parents, the writer at Deliver Away Debt describes how his mom and dad blew colossal amounts of cash showering him and his sisters with gifts, but never bothered to put away funds for his education. Saving $50 or $100 each month, he reasons, would have built up a sizable college fund, providing a gift that lasted far longer than any of the presents he received.
Parent’s shouldn’t feel obligated to pay for their kids’ higher education, and stiffing children on Christmas morning is easier said than done. The takeaway from the post is that parents should make a reasonable budget for gift-giving and stick to it rather than eliminating priorities in favor of materialism.
Don’t Throw Away College on Christmas [Deliver Away Debt]