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Hallelujah! The spending season is over and things are looking a little more sober now. Well, not so much for my family and I. My husband and I have three secondary school going children and now, the school fees menace is staring at us right in the face. It’s not like we didn’t plan for this, but the festive season’s emotional spending caught up with us. For some reason, we don’t really know where all the money went. Now it’s January and sadly, Santa has not reimbursed us for all the money we spent. At the moment, we are praying for some miracle because either way, these children have to report back to school within the next few days. Any ideas on what we should do?
Distressed Parents
Dear Parents,
There are many like you out there. Holidays are tricky because of all the heavy spending that goes on. Towards the end of the year, the reality of the financial commitments ahead check in and we get desperate trying to look for money as if we were oblivious of the New Year. This may not be helpful now, but seriously you should have set your priorities right. Needless to say, financial experts have this to say regarding planning for your holidays and the life thereafter. These tips will help sort out your crisis and should be transformed into habits that will save you from a similar situation in future.
Make a budget and stick to it
Budgeting is not rocket science; it is simply financial planning for your life that requires a steady dose of discipline. If the plan was to spend two million shillings for Christmas, try and stick to it. There is life beyond Christmas and New Year. Holidays are filled with all manner of temptation and financial experts suggest that parents set aside some money in a fixed deposit account before they begin spending money without caution during the holidays. Do you read me?
Pay some bills in advance
While you are struggling with the commitments like school fees, organised parents did away with the nightmare way before the festivities kicked in. How, you ask? Simple: they became ‘financial prophets’ and foresaw the impending stress that would descend on their shoulders at the beginning of the year. To avoid that stress, they paid their children’s school fees in advance.
Take a bank loan
Banks come to our aid when we need them most, even though the money is given at a high cost. Bank loans offer the much needed palliative remedy to a financial crisis but one pays dearly for their services. “A proper budget and a tradition of saving will give parents a stress-free New Year,” says Din Awino a financial consultant based in Nairobi. “Hey! Parents wake up and get in touch with the New Year’s realities,” the money man says. Borrow from friends
Should you hit a snag with the banks (as will sometimes happen), you may want to swallow your pride and seek the help of your family, friends and neighbours. Woe unto you if your family hosted the most elaborate Christmas party and your children showed off their new Supra sneakers and skates to the envy of everyone else. Still, if you can bear the embarrassment of having to beg after so much spending, opt for this kind of soft loan because there will be little or no interest. Sometimes, even just a little common sense is good enough. Plan ahead and don’t overspend. Holidays are brilliant and we appreciate the therapy that comes with them; but parents should never succumb to pressure to spend more than they can afford.
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