HONOLULU(KHON2) — Worried about overspending this Christmas? You’re not alone. Many parents will blow hundreds and go into debt this Christmas according to a new study.
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Here are tips to help make the holiday special without breaking the bank.
For many, celebrating Christmas and giving gifts go hand-in-hand.
Honolulu resident, and mother of two, Shantay Sueoka said she tries not to go overboard buying gifts.
“I mostly try to do shopping kind of throughout the year, buy little things that I know they’re going to either need or like use,” Sueoka said.
Cara Squires, is the mother of a 5-year-old.
“I saw this thing and I’m probably going to be doing it,” Squies explained. “(Buy) one thing that they need, one thing they want, something to read. That’s probably it.”
But sometimes the inner Santa Claus can get carried away
According to a new holiday spending report parents in Hawaii will drop an average $596 per child and 49% expect to go into debt to pay for Christmas this year.
Hawaii economy expected to grow 2% in 2025, driven by construction, real estate, and tourism
Alan Akina, CEO of 101 Financial, warned against overspending.
“I see where parents are coming from, right? A lot of us grew up poor. We want to give our kids things that we didn’t have. We think we’re doing them good, but in a lot of cases,” Akina added. “That may not be the best thing.”
He said there’s wrong with giving gifts, but you need to set guidelines and be R.E.A.L. about it and shared his motto.
“The R stands for reasonable. It needs to be a reasonable budget,” Akina said. “E stands for expectations. We need to set the right expectations in our kids mind.”
He suggests telling them they’ll get one gift from you and one from Santa so that’s what they expect.
The A stands for alternative presents, like homemade gifts. Akina said he gives his kids stocks.
“Those are alternative gifts that keep on giving,” he explained.
“The L stands. I know this may sound a little cheesy, but it’s just love,” he said. “How can we give more love and aloha to our family and people? We need that more than ever before.”
Akina advises against using a credit card, unless you can pay it off immediately.
And while 1 in 5 parents may opt for the buy now pay later service, Akina said don’t do it.
“BNPL scary. So scary. Here’s why it’s scary, because those BNPL loans do not show up on someone’s credit report,” he explained.
Another thing to remember: some of the best gifts, don’t go under the tree.
“I make sure that they have moments and memories more than just an object that in six months they’re not even going to use,” Sueoka said.
“I focus mainly on kind of spending quality time together and experiences,” Squires added.
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“Those are things that kids remember, right? Remember we went camping, remember when we did this, they remember that more than the toys,” Akina said.