Three tips to avoid gifting debt

 _{By Bromwich+Smith Staff | 770 words | Reading Time: 3 minutes and 51 seconds | Date: 2022/12/06}

Every year we try to impress those we love by finding the ultimate gift. The one item they open, with eyes wide open with sheer excitement and disbelief that you were able to find the perfect gift. It may be something over the top and expensive, or sentimental and filled with love. No matter what the ultimate item may be- we have a few suggestions on things to avoid during this gifting season.

The Experience Gift

We hear of many ways people stay on budget during the holidays and one is sticking to a set shopping list. Purchasing one item their child wants, one thing to wear, one thing to read and one thing to do. While this can be a great resource for some- we understand it will not work for everyone.

Many friends and family will want to gift experience items. This can be anything from sport tickets, amusement park passes, zoo admissions or museums. While this can be a thoughtful and wonderful item, keep in mind the full scope of costs. When you go to watch a hockey game, there may be high priced parking prices, along with food and drinks and many will want to be decked out in the teams jersey or merchandise. The same goes with other experiences, food, parking, souvenirs- often these costs can outweigh the original gift price. We are not saying do not gift these items we want to shed light that they may in fact cost the recipient money to use.

The Pet Gift

While many parents love the idea of surprising their kids with a new family pet, this is a gift that comes with yearlong- and lifelong expenses. We often overlook those additional costs when we shop with our emotions but in order to keep our budgets in check it is important to be aware of. We are seeing reports that the average pet in 2022 costs $3700 a year. There are many additional costs when it comes to bringing an animal into your home, and knowing those extra costs ahead of time can save you financially.

Pets come into our homes with love and affection, but the maintenance can add up. Think about food, treats, toys, kennels, leashes, vet appointments, training- and that’s just the start! Pet insurance, grooming, doggy daycare can add up quickly. Lets not forget about the cost of replacing items due to damage. How many horror stories have you heard about pets left alone who have chewed on furniture, or had accidents on area rugs? Pets are an amazing addition to a family and we want to ensure that you are fully aware of those costs before Santa drops off a new puppy under the tree this year.

The Gaming Gift

Many of us have teens or pre teens in the house who are asking for the latest and greatest in gaming gear. What you may not know is the hidden costs that come with an item like a new console. These systems typically have many add on items and for the unexpecting parent, you may not be aware what you need to be able to use a gaming system. They may or may not come with any games- and buying a new game can often be an additional $80 each. Your child may need more controllers, more memory to store their games, as well as items that will protect the console from damage like a protective screen or carrying case. Before you know it that game system, games, and controllers have cost you $1000.

You may want to set the expectation on gaming gifts that additional costs come from earned money, or try to game stores who often sell used copies of games. When your child is finished with a game, they may want to consider trading it in and taking that value to purchase another used game.

Its Always The Thought That Counts

While we all want to gift items that are going to be appreciated, we need to think past “would I like this”, and think of how the item is going to affect the recipient. By taking time to understand their situation, you will be able to find that wow gift that doesn’t leave your loved one with an added bill after the holiday season.

If you are facing overwhelming debt, remember that you are not alone. Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, or request a call back at contact us page.