Once again, Mackey has done it again. Enjoy another great article from our November newsletter.

Caution – it’s the holidays!

When I was young, our Christmas celebration consisted of fruit, candy, a practical present or two (like PJs and underwear), and one treasure you really could not live without, like a Barbie doll or a BB gun!

In 1966, when I was eleven, we spent Christmas with my mother’s brother and his family of five children. He was a very successful physician and much more well to do than my family. Not wanting to be outdone, my parents rose to the occasion by increasing their gift-giving. I received a black and white portable television - my own personal TV! At the time, the cost of such an item was about $100, much more than my parents’ normal Christmas gift budget. This was my first taste, and one that has stuck with me all these years, of “keeping up with the Jones.”

The holidays, more than any other time, challenge us with balancing the desire to please and measure up as providers with the sanity of fiscal prudence. We know that the kids will be comparing their presents with their friends. Did they get the latest and greatest cool toy or electronic gadget? Do they have the right clothes to fit in?

Human beings change in one of two ways: either very slowly or in crisis. This past year has created economic crisis for many people. As a country, we needed a change in our money habits. We needed to cure our addiction to debt and get back to saving. And that is exactly what is happening. The economic crisis has reminded us that we need to prepare for the lean times when we are fat and happy, knowing that it is not if something will interrupt our lives but when.

The holidays offer a great opportunity to teach the value of moderation to our children and to help them understand what it means to live on a budget and to make good financial decisions, today and for your and their tomorrow.

Make this upcoming holiday season the best yet. Look over your cash flow and decide on a spending budget. Allocate that budget to all of those for whom you wish to bless with a gift. Shop wisely and stay within your budget. And enjoy the feeling of freedom and comfort that comes from knowing there are no credit card bills coming to haunt you in 2010! Now that is a reason to celebrate the new year!

Personally, my favorite holiday gift is one I ask for every year. I ask my kids to write down and give me one of two things: a short story of their own creation, or the top ten best things that happened to them over the past year. They read the story or list out loud and talk about it on Christmas day. In turn, I bake them a tin of their favorite cookies. While we still have “store bought” presents floating around our house, the cookie and story exchange is by far my most treasured exchange.