Photo Caption: Rose Miller, Financial education consultant at the JN Foundation, and facilitator at the JN Financial Academy.
Jamaicans are being urged to adopt smart financial practices this Christmas to avoid accumulating debt and be in a better position to benefit from an improving economy.
Rose Miller, Financial education consultant at the JN Foundation, and facilitator at the JN Financial Academy, highlights the ongoing challenges of personal debt management in Jamaica, attributing them to poor financial habits.
“Jamaicans know the importance of saving, but this knowledge often doesn’t translate into better spending practices,” Mrs Miller explained.
To help Jamaicans manage their money this festive season to avoid financial strain, Mrs Miller shares five key tips for managing money wisely:
1. Invest Any Extra Income or Clear Existing Debts
Christmas sometimes brings extra income, such as bonuses. Instead of splurging, Mrs Miller advises channelling these funds into investments.
“Consider using the bonus to pay down existing debt,” she suggested. Alternatively, she recommends placing your bonus in a fixed or long-term savings account to earn higher interest, or explore stocks, mutual funds, and other financial instruments offered by regulated institutions.
2. Create and Stick to a Budget
“A specific budget for Christmas spending is essential,” Mrs Miller emphasised. Prioritise needs over wants and allocate funds only for necessary expenses and activities.
For those using credit cards, she warns against overspending:
“Remember, your credit card is a loan with high interest rates. Spend within your means and aim to settle the balance before the due date to avoid interest charges.” This will also ensure that you truly enjoy benefits such as cash-back rewards and no point-of-sale fees.
3. Be Creative with Gift Giving
Gift-giving doesn’t need to break the bank. Mrs Miller suggests tapping into personal creativity to craft unique, meaningful presents.
“Homemade gifts often cost less and hold greater sentimental value than store-bought items,” she noted. Additionally, opting for shared gifts for households can reduce costs and simplify shopping.
4. Share the Cost of Christmas Dinner
Hosting a holiday dinner should not mean shouldering all the expenses. Mrs Miller encourages families to adopt a collaborative approach.
“Ask guests to contribute by bringing their preferred drinks or specific dishes,” she proposed. “This spreads the cost and reduces your financial burden.”
5. Spend and Invest Wisely
Mrs Miller concludes with a reminder that thoughtful financial decisions can lead to a more enjoyable Christmas and a more financially stable New Year.
“By planning and prioritising, you can celebrate the season without the stress of mounting debt,” she said.