Corey is a certified financial planner with C5 Wealth Management in Great Falls, Va. Corey has served on a number of advisory councils for the Financial Planning Association and C5 has been selected as one of the nation’s Top 500 Wealth Managers by Bloomberg Wealth Manager Magazine.
What is the biggest financial mistake people make around the holidays?
Spending money they don’t have. If you don’t have it, don’t spend it. People get caught up in things and especially among family members, there are a lot of guilt issues. They tend to overbuy.
What kind of advice to you give people shopping for Christmas?
I tell people to have a spending plan and for people to determine what they can spend. I also suggest they use envelopes for the people they are buying for. That way, they can partition the money they have available. And it doesn’t mean you have to spend the same amount for every person. Some people have more basic needs than others.
What about people who are out of work or don’t have enough money for big Christmas spending?
There is no harm in suggesting that, among your family, people skip presents. Obviously this would be among adults, children are different.
Are gift cards a good option?
The hard part with gift cards is you have to be aware if there are any costs or fees associated with it and you have to be aware of the expiration date. Store gift cards tend to be huge moneymakers for the store because people don’t spend them in time.
What is a common mistake people make when handling their money?
I would say people spend the money before they make the money and live beyond their means. Especially in this area, there is so much money, people try to keep up with their surroundings. In the end, they end up in debt and having serious problems. I try to keep people out of credit card debt.
– Susan Ferrechio
