(OSV News) -- With U.S. household debt approaching $18 trillion as the Christmas shopping season kicks off, a Catholic financial expert is offering practical advice to enjoy the holidays without breaking the bank.
"We all know about buyer's remorse, but I think there's such a thing as 'Christmas shopping remorse' that happens in January when the Visa, the Amex or the Master Card bill shows up, and you're like, 'Holy cow, I spent … fill in the blank," said Anthony Minopoli, executive vice president and chief investment officer for the Connecticut-based Knights of Columbus.
Gallup reported that this year Americans plan to spend on average over $1,000 for Christmas gifts this year -- and some homeowners have even taken to paying as much as $5,000 for professionals to install their exterior Christmas lights.
But Minopoli, who is also president and CEO of the Knights of Columbus Asset Advisors, told OSV News that when it comes to holiday (and other) spending, he recommends the sage advice of his Italian immigrant father.
"One of the things that he said to us about consumption was, 'Nobody cares,'" Minopoli recalled. "And what it meant in my dad's shorthand was that, in terms of spending for conspicuous consumption, the reality is that nobody cares about the things you do."
Since there's ultimately no pressure to impress others with your holiday purchases, said Minopoli, "focus on spending within your needs."
"Have a good sense of a budget," Minopoli said, adding that "budgeting helps" whether you're saving for anything from a child's education to a vacation.
When it comes to gift-giving, temper emotion with wisdom, especially when purchasing for someone particularly dear, he advised.
"You may think, 'Gosh, I really want to splurge.' And then you realize afterward, 'What hole did I dig myself into?'" Minopoli said. "And that can have a real impact on saving for things like education and retirement."
In particular, "electronics get very expensive," and with more kids looking for them under the Christmas tree, parents shouldn't be afraid to have a few "frank discussions" on family spending, said Minopoli.
Start saving up for Christmas expenses over the course of the year by opening a separate bank account, or even setting aside "an envelope in the drawer that you pop $20 a week into," said Minopoli. "By the time you get to Christmas, if you put $20 a week into for 50 weeks, there's $1,000 in cash."
Beware the ease of "just swiping that credit card," since "you're not actually seeing the cash come out of your wallet," he cautioned.
But if you do find yourself with a bigger credit card balance than you anticipated due to holiday spending, don't despair, Minopoli said.
"If you're in that position, small things can mean a lot," he said. "If you've got $5,000 or $15,000 in debt on your credit card, you're like, 'That's an insurmountable amount; I can't accumulate that much money.' But you can start paying it down."
While you're tackling those balances, "don't look at it on a week-to-week basis," he said. "Look at it six months from now. When you've paid down some of it, you begin to get a sense of accomplishment, and you can keep chipping away at it. The more you chip away at it, then you really start seeing that there might be a light at the end of the tunnel."
At the same time, navigating financial challenges doesn't mean you have to sit out the Christmas season, he stressed.
"Paying down debt isn't a lot of fun," Minopoli said. "But as you pay down debt, you can allow yourself a little splurge during Christmas and buy that nice gift for your kid. You can stay on track. The thing that you don't want to do is to let that spiral and to get to the point of despair where you just give up, cash in your whole future and say, 'I'm never going to get out of this.'"
Above all, remember the joy of sharing with those in need -- and teach your children to do the same, said Minopoli, pointing to an opportunity offered by many parish churches: the Christmas giving tree, decorated with requests for gift donations.
Minopoli said that when his children were young, he and his wife "had them take the card off the giving tree … and buy the gift out of their own money."
"And what it did for my children is that it gave them a sense of understanding that there are people out there and this (basic item) is what they want for Christmas because they just don't have it," said Minopoli. "There were a lot of blessings that came to my kids from realizing what (need) was out there, by purchasing gifts for a kid that they didn't even know."
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