November is like the prelude to an opera, the appetizer to a lavish meal, the previews before the movie, or the opening band before the main act. It really tries to win us over with making the first snowfall of the season seem like the first one we’ve ever seen; it coaxes us with the crackling of wood on the fire and the smell of cinnamon and nutmeg in coffee houses and stores. Its purpose is to set the mood for the holidays and to provide the backdrop to what will hopefully be a happy and memorable festive season.  It’s also a time that reminds us of the reasons why some of us fear the holidays to begin with. But fear no more, my friends. The following newsletter will give you advice on how to approach gift-giving, a reminder of a special national event, and a list of holiday Do’s and Don’ts so that you can ensure you have a fabulous guilt-free holiday. Don’t forget to check out our new commercial and latest partner associations’ announcement.

From all of us at Credit Canada, have a wonderful holiday season!

Laurie Campbell
Executive Director

The Wish List

Ah, yes, the wish list. We all make them when there’s a birthday, holiday, or special event approaching, all in the hopes that our dear friends and loved ones will rush out to get us each and every item on it. So the question is, really, where do you fall? If you’re the gift-receiver, the only thing you will have to fret your pretty head over is opening the gift and putting on your best ‘look of surprise’. But, if you happen to be the gift-giver the wish list will have an impact on your money. Whether it be for a holiday, birthday, wedding, or graduation, there are three major steps that all gift purchasers must take in order to ensure you show your appreciation while not increasing your debt.

Step #1 – Create a Spending Plan

Whether we like it or not we should all be working with a spending plan, otherwise we won’t know how much we can afford to spend on gifts on a monthly basis. Your spending plan should take into account all of your monthly spending, including mortgage payments or rent, phone, cable and internet bills, groceries, gas/electric, hydro, and car expenses. You can find a helpful guide to creating your spending plan by visiting www.crediteducationweekcanada.com, and clicking on the downloadable version of the Credit Education Week booklet.

A note of advice: try to create a realistic spending plan so that you can use it on a day-to-day basis while achieving all your financial goals.

Step #2 – Monthly Gift Account

Once you have completed your spending plan, you will know approximately how much of your income you have available on a monthly basis for purchasing gifts for others. Now you have a set amount that is dedicated to the gift account. However, should you have any extra money that you would like to add to this account, you can add to it along the way. Furthermore, any month you don’t need to purchase anything for anyone, you can choose to add that amount to the total budget for all gifts or to your total holiday budget. For example, let’s say you have $50 to spend monthly on gifts, but you didn’t have to purchase any in January (phew). You can choose to either, (i) divide $50 by the 11 months left in the year and add that amount to each month after January, for a total of $54.50 for gifts on a monthly basis, or (ii) you can add an extra $50 to your total holiday budget for that year.

Step #3 – Get the low-down before you spend

You should always ask what the person for whom you are purchasing the gift wants. Some people are uncomfortable with this because they think it takes all the fun away from gift-giving, but do you know what really takes the fun away? Throwing your money away on gifts no one wants. You may be thinking, ‘huh?’  But the fact is your friend may discard the gift and with it goes your hard-earned cash.  If you’re worried that the person might ask for something that is beyond your budget, being honest always works best. Simply tell that person that although your budget doesn’t allow you to purchase that item for them, you would be more than happy to contribute what you can afford towards that particular item. You could also give them a gift certificate in the amount you can afford to a store you know they frequent. By acknowledging your friends likes, such as a morning coffee at Tim Horton’s, a $20 gift card from Tim Horton’s will be appreciated because you’re giving them something that they like, will use, and your money hasn’t gone to waste.

Let’s be honest, some of us may feel guilty for not being able to buy everything that’s on everybody’s wish list.  Although the feeling of guilt is there, your financial reality is something you must also deal with because that same guilt that drives you to overspend will inevitably turn into internal resentment for not having stuck to your spending plan. Besides, this resentment will only worsen if that same friend for whom you overspent sticks to their spending plan when it comes to buying a gift for you. So make it a guilt-free gift by staying within your means when purchasing gifts for others, so that both the gift-giver and gift-receiver are happy.

If the thought of creating a spending plan overwhelms you, just ask for help. Credit Canada is a not-for- profit credit counselling agency that provides FREE and confidential money management counselling. Visit www.creditcanada.com or call 416-228-DEBT(3328) or  1-800-267-2272 and a counsellor will be happy to create a spending plan specifically designed for you, absolutely free. 

Credit Education Week 2008

It’s that time of year of again. Christmas, you ask? I don’t think so. We’re talking about Credit Education Week Canada 2008, which will be taking over our beautiful city once again, all in an effort to educate the Canadian consumer at large. Okay, that goal might be a bit too ambitious but it’s definitely worth a fight. In case you didn’t notice our economy has dipped a little in recent months, which has sent many consumers trying to safeguard their spending plans against the economic turbulence.   If you’re short on solutions, look no further. Credit Education Week is your one-stop-shop where you can find all the resources you’ll need to get financially fit. It’s fun, it’s free and it’s…well, that’s about it.  But join us and get some free swag too!

Here’s a look at the week’s scheduled events:

Get That Holiday Look

Everybody's talking about how our economy isn’t doing too well,  and with the holidays just around the corner a lot of us are wondering how we’re going to pull-off a happy and magical holiday season while staying within our budgets. When you take into consideration all the parties and get-togethers you will be attending, and all of the outfits you’ll be wearing at these functions, you may be tempted to either downgrade your threads or forget about the holidays entirely. But before you go compromising your style, check out the “Do’s and Don’ts” listed below. These are just a few helpful tips that are easy to follow and can help you keep your money where it belongs – in your pocket. Because here at Credit Canada we say you should leave the readjusting to your spending plan, not your style!

Do’s and Don’ts

Do be fashionable.

Don’t be gaudy (or tacky); less is definitely more. This tip is applicable to both your attire and home decorations.

Do be tactful.  If you like the brand names but don’t like their ticketed price you should give second-hand stores a second chance. Try visiting thrift and consignment stores for great jewelry, accessories and that one of a kind item for you to wear during the holiday season. For a list of consignment, thrift and vintage stores in and around the city just click here.

Don’t pay retail. Take advantage of the holiday sales and always purchase things that are being sold at discount prices. Also, try visiting legitimate outlet stores in order to find items at a fraction of what they would normally cost.

Do visit Samko-Miko toy warehouse if toys are on your wish list. For information on their locations please visit http://www.samkosales.com.

Don’t buy fads. They always end-up being a waste of your money, your time, and a disgrace to fashion. Bad: plain and simple.

Do set a holiday spending plan. You must have a spending plan, and once you have one, stick to it. The trouble with not having a spending plan is that when you do go holiday shopping you will most likely overspend for the simple reason that you didn't set any limits to your spending. If you need help creating your own personal spending plan you can contact us at 416-228-3328 to receive a free Money Tracker or you can download it at the Credit Education Week Canada website at

www.crediteducationweekcanada.com.

Don’t go Christmas shopping with the credit card. Leave the credit card at home! Just slowly, and calmly, put…the… credit… card… down. Jokes aside, it’s important you make all of your purchases in cash for two reasons, the first being that paying in cash hurts more than just swiping a plastic card because you’re literally watching your money slip away from your hands (a difficult time for us all), so you’re less likely to overspend. The second reason is that it’s a sure way to stay within your spending plan, since you will only have the amount of cash you KNOW you can afford on gifts.

Do have a plan. When you go out holiday shopping, know exactly who you are shopping for, what stores you are going to visit, and how much you are going to spend on each person on your list. Once you’ve bought what you needed, leave immediately.

Don’t forget what it’s really all about. As corny as it might sound, the holiday season isn’t about, who can spend the most money in a single month. It’s about really enjoying the season with the people you actually care about. Just concentrate on having good food and enjoying outings with loved ones such as going to parades, visiting little towns, a game of hockey, having hot chocolate, watching sappy Christmas movies, and enjoying outdoor skating and/or tobogganing.

Do remember that the holidays can be stressful, but at the end of the day it’s a choice we all make. Having learned from the ghosts of Christmas past, the more money you spend is not an indicator as to how much fun you’ll have. If the holiday spending is turning you into the Grinch, just step back and do the things that actually put a smile on your face. Being true to yourself (and your financial situation) will definitely make your heart (and wallet) grow at least three times its size.

DISCLAIMER: If you’ve never watched the cartoon movie, “The Grinch Who Stole Christmas,” the last tip probably made no sense to you. The point is to just do what both you and your budget are comfortable with…and go watch the movie. It’s a holiday classic!

What's New?

Did you recently come across a commercial with a catchy tune that just won’t leave your head? If so, then you probably saw the new Credit Canada commercial. If you haven’t seen it yet you can check it out on YouTube, or by clicking on the link below.

We apologize in advance. Watching the following video may cause you to dance, snap your fingers, tap your feet, or rethink your strategy for getting over a relationship. But most importantly, if you’re currently experiencing problems concerning debt, it may cause you to seek free and confidential help.

Want to see our commercial?

New Community Partnerships

We are proud to announce that SIFE Ryerson and UMOC are new community partners:

SIFE (Students in Free Enterprise) Ryerson is a national award-winning team that is part of a global not-for-profit organization that has affiliations in over 40 countries around the world. SIFE Ryerson gives students the opportunity to gain hands-on experience by creating and implementing innovative projects that better Ryerson students and their community. By real world business experience, SIFE students apply their knowledge and obtain industry experience that employers are looking for.

UMOC (United Millennials of Canada) is a not-for-profit organization that is committed to increasing financial literacy, cancelling debt and building wealth. Its members set demanding goals as a means to achieve their dreams, they understand that there are no short-cuts on the journey to financial freedom, and they condition themselves and the people around them to win financially, emotionally, and physically.