NORFOLK, Va. — You don’t need to overspend during the holiday season to show someone you love them. Yet, there is still pressure every time you log onto social media or watch television.
While it is important to be cognizant not to overspend this month, it is bound to happen for some folks.
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Kezia Hendricks says she knows how tempting it can be.
"Being that I am a parent of six and a grandparent of one, it's easy for me to spend a lot,” she told me.
To avoid the holiday spending trap, Hendricks says she makes a budget and avoids credit cards.
"If you are going to use a credit card, instead of using the money that you think you're going to get, use the money that you already have,” she said. “One of the things that a lot of people don't include in their budget, when it comes to holidays, is the food and the decorations.”
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Having always had a career in finance, Hendricks started the Young Investors group in 2018.
YIG is a nonprofit that, among many things, teaches young people how to spend and save money, how to invest and how to navigate the real estate market.
“Our firm belief is that through the three pillars of Young Investors Group—self, economic, and community investments—we enable youth from disadvantaged communities to avoid the trajectory of poverty, violence, self-harm, and equip them to make wise life and career choices.”
Hendricks says the Young Investors currently have a partnership with Azalea Middle School, where they will be taking on 20 students. Hendricks says they also have a neighborhood and online cohort as well.
Nigel Robertson first joined when he was 17, and now he is a mentor. He says YIG set him up for success, as he was just recently pre-approved to own a home.
“The way that I got my credit to where it is, is pretty much I took a bill and then dedicated that bill to a specific credit card, and I didn't spend anything else on that credit card,” he said. “If you get a bill and you dedicate that to your credit card, and you pay that time and time and time again, it builds confidence on the bank's side that you're able to pay them back.”
Robertson says he does not buy anything he cannot afford, which is a lesson he takes into the holiday season. For managing money, he suggests turning on your bank notifications or downloading a budgeting app.
“Every single time I swipe the card, I get a notification on my phone [that] makes a vibration,” he said. “And at the end of the week, I could look at the total of what I spent for that week. So, that is the way I really budget my money and make sure that I am spending the things that I need and not what I want.”
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If the notifications don’t stop you from spending and you’re in over your head come January, consider credit counseling.
"Don't wait until things start paying late,” said Bruce McClary, National Foundation for Credit Counseling.
The National Foundation for Credit Counseling is a network of nonprofit financial counseling agencies serving all 50 states. The main goal of the organization is to help people get out of debt.
“Most people who come in and talk to a counselor have about three or four credit cards and their average balance is typically above $10,000,” he said. “Sometimes you're talking about cutting a 10 to 15-year payment estimate down to about four to five years."
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Credit counselors help consolidate your bills, get lower interest rates, and improve your money habits.
“They're going to help you better understand the choices that you have in front of you so that you can make the best-informed decision for yourself and your family,” McClary said.
If you choose to talk to a credit counselor, McClary told me that the initial session lasts about an hour, and you can talk over the phone, messaging, or video chat.
McClary says counselors will ask about the status of your bills, how much you owe, how many credit cards you have, and any lingering student loan, car, or mortgage debt.
