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This article is to help guide our members and non-members alike along a path of financial planning our counselling as you may call it. The current economic climate calls for much thought and consideration into our planning and the execution of those plans.

In this context, we wish to suggest some pointers which we believe will help you to enjoy Christmas and at the same time to be ready to start the New Year on a successful financial path.

The Christmas season is one of the times that we experience the highest seasonal spending. Back-to- School season being the next closest competitor. Unfortunately, however, when the calendar turns to January, the negative effects of this spending begin to set in: higher than expected credit card statements, tighter finances than imagined, increased stress, and regret over the amount of money spent. You must take steps to avoid overspending.

Before you get on the shopping trail, prepare a budget clearly itemizing how much money you wish to spend on each item such as gifts, clothes, appliances, decorations, etc.

Stick to this list. It should be your guide for Christmas and similarly for life.

Retail Stores heighten their advertising during Christmas time.

They are doing their job and we must respect that. You must also review your strategies and heighten your awareness of what is taking place in the market. And, they will certainly understand that the also need to respect you.

Review cost of items from various stores and compare quality and price that will match your budget and pursue your shopping from an informed and smart perspective.

Avoid shopping by impulse for things that you just see and want.

Purchase only what you need, Watch your credit card. Avoid using this for unnecessary purposes as the ‘dragon’ hidden in high fees and debt will dismantle your finances and your family support systems in the New Year. Remember there is life after Christmas.

As far as is possible, call stores first to be sure that they have want you need. This will avoid unnecessary travel expenses whether by taxi or gasoline for your vehicle.

In the event that you are travelling outside of Trinidad and Tobago, research the best travel and hotel options with the key factor of cost in mind. We support family time, moreso at Christmas but it is important to monitor the cost of these of these desires to verify whether after it is done, that living expenses in the New Year will be within your budget. If it is not, you may choose to forego travel until a more appropriate time.

Keep your calculator or note pad with you to track spending. This is a key component to wise financial stewardship and your due diligence here cannot be over-emphasized. You do not need any specific software to track these expenses – a simple pen and paper will do the trick for you! Comparison with your budget is the next prudent and ongoing step.

Ignore temptations where you see that there is extra money in your hand. Save it in your credit union! You must remember that your credit union is your best friend and feel free to discuss your financial challenges with officials there. You must guard against the temptation of loan sale by other financial institutions which makes ‘taking a loan’ easy. Ask about the loan fees and all hidden costs. Compare with your credit union.

Bear in mind that a loan with a credit union will always be the most cost-effective way of borrowing.

Generally, except for some special loans, the interest rate is 1% per month on the declining balance. This works out to approximately 6.6%.

Your shares will be used as collateral for loans, but the beauty in this is that it also remains intact and attracts dividends at an average of 4.5% per annum. It simply means that while you are repaying your loan at a minimum interest rate, your shares are earning interest for you.

More importantly also, is the fact that credit union members are the owners of the credit union and you have the right to attend your credit union’s Annual General Meeting, question the Board and give guidance on matters that concern your finances. You do not have that opportunity in another financial institution.

In summary, we ask that you pay very close attention to your financial welfare at all times. Enjoy every moment of the season with your family and loved ones.

But, remember avoiding overspending during the holiday season may not be easy.

It certainly requires extra time and effort.

But trust us, in January -you will thank, not only our League, but yourself for being a ‘true and honest friend to you’.

We wish you a safe and enjoyable Holiday Season