Do you remember the Friends episode when the group became divided over how much they could spend? Pheobe, Joey, and Rachel balked at splitting the bill at an expensive restaurant while Monica, Chandler, and Ross were completely unaware of their discomfort.
(The next paragraph contains a spoiler alert, but since Friends is now celebrating its 30th anniversary, I think that’s okay.)
In the end, sadly, Monica found herself in the “less fortunate” group because she lost her job over some free steaks. Money was about to become an issue for her.
We’re entering the holiday season and if you haven’t already started your shopping, you’re probably about to enter into the mayhem. This might have you looking at your bank account and feeling a little more stressed than usual. In fact, “More than four-in-10 (44%) consumers feel pressure to spend more than they can afford this holiday season, climbing to 53% of Gen Z and millennials.”
A possible solution? How about talking to your family and friends about setting a group budget? After all, if you’re feeling a little strapped, someone else is, too.
Here’s why this works:
Prevents Overspending and Financial Stress
Holidays often come with unspoken expectations that can lead to overspending. From extravagant gifts to elaborate meals, it’s easy to go overboard. A group budget sets clear financial boundaries, ensuring everyone agrees on what’s realistic. This prevents financial stress and helps all members avoid the dreaded post-holiday regret of overspending.
Promotes Fairness and Transparency
Without a group budget, expenses can feel unbalanced. Maybe one person ends up shouldering the cost of hosting or buying decorations, while others contribute less. A group budget ensures that everyone shares financial responsibility equitably. By discussing contributions openly, you avoid awkward misunderstandings or resentment.
Fosters More Meaningful Celebrations
By focusing on a budget, you’re more likely to prioritize what truly matters. Instead of spending excessively on material items or elaborate displays, a group budget helps shift the focus to experiences, traditions, and quality time together. This approach fosters more meaningful celebrations and creates lasting memories.
Encourages Financial Responsibility
For families and friends, setting a group budget can serve as a valuable lesson in financial responsibility. It’s especially helpful for children and young adults, teaching them how to manage money, plan ahead, and work within limits. This skill will benefit them far beyond the holiday season.
The whole gift-giving thing can mean a lot of stress; I’ve shared my own stories about being the giver and the receiver and there’s some feeling of uncertainty on both sides of the experience. Getting on the same page with a group of friends or family members about budgeting could go a long way in alleviating some of that. Yes, it might help you with your holiday spending, but you never know who else might be relieved by this solution.
Including your financial advisor.
