DALLAS, Dec. 14, 2021 /PRNewswire/ — The National Financial Educators Council (NFEC)’s Give Savings Campaign encourages people to change their holiday spending traditions in ways that move them toward greater financial security.
The idea behind Give Savings is to help individuals, along with their families and loved ones, work toward greater financial health and provide options for gift-giving that can contribute to that goal. The campaign is designed for both adults and kids.
Adults can make a gift-giving pact with several options that can help them better manage their money. These options include no gift exchange, card exchange, gift pact that limits the cost of gifts, or gifts to cover daily needs (like a grocery store gift card). A gift pact letter is provided complimentary to help start the conversation.
Kids can ask family members to substitute money for gifts, with some funds to be put toward long-term savings and some set aside for fun purchases. A holiday wish list is included in this campaign to let loved ones know how any money they give will be used. This can be leveraged by parents as a financial literacy education lesson that can offer long-term benefits.
In a November 2021 NFEC survey of 1,101 respondents, when asked, "What gift would you most like to receive this holiday season?" more than half of respondents (50.1%) stated "No Gifts". 26.8% stated a preference to receive money for paying down debt, retirement, or need-based purchases. Survey results indicated that 23.1% of participants would prefer traditional physical or virtual gives and money for want-based purchases.
See full survey data: https://www.financialeducatorscouncil.org/holiday-gift-giving-survey/
On average, people tend to overspend during the holiday season: a Coinstar survey found that 77% of those surveyed expected to exceed their holiday spending budgets, and only 37% had a plan to implement a post-holiday budget to recover from overspending. As a Consumer Affairs survey states, "Many households are adding to existing high-interest credit card debt, with around 57 percent of respondents saying they expected to go into holiday debt" (https://www.consumeraffairs.com/news/survey-suggests-consumers-are-overspending-for-the-holidays-121417.html). These trends get people off on the wrong financial foot as they approach the new year, which can have negative impact on their finances for years to come.
"If your friends and loved ones are like the average person," says Vince Shorb, CEO of the NFEC, "Many are struggling with debt, are behind on their retirement savings, and are feeling financial stress. Show loved ones you care about their immediate needs and long-term futures by giving the gift of savings this holiday season."
The Give Savings Campaign will launch on "In the Black Friday" – a day when the NFEC urges people to evaluate their holiday spending with an eye toward staying "in the black" instead of putting their accounts "in the red." By encouraging people to reduce the money they spend on buying gifts, while helping loved ones put money away for the future, the Give Savings Campaign redirects the holiday focus onto the positive choice of saving for long-term financial goals.
The NFEC’s goal with this campaign is to raise awareness about the potential problems with gift-giving and encourage people to contribute monetary gifts to loved ones’ savings, rather than dealing with the hassle of shopping and crowds to overextend their budgets buying traditional gifts. Aligning with the NFEC’s national financial literacy standards, the Give Savings campaign is focused on addressing spending and savings habits of participants.
The National Financial Educators Council (NFEC) is a social enterprise organization that promotes financial wellness through advocacy campaigns and empowers communities around the world by giving them access to high-quality financial education resources.
SOURCE National Financial Educators Council