Financial Education - What economic and financial theories have to say about spending during the holiday season

About the expenses during the Christmas season, since we are in dates in which it is also required to be careful with personal and household finances, so as not to start the following year with heavy debts that in the end become a headache.

Specialists in economic and financial theories point out that the payment of the bonus gives people the feeling that they have an additional income and, although it is indeed so, they could spend more than what they allocate month to month for obligations and entertainment.

Therefore, they recommend that if you do not set a cash flow or an estimated budget, you may not be aware of the consequences of paying with credit cards or applying for loans with high interest rates.

For experts to reduce the famous unnecessary expenses or rather avoid those purchases that are not included in a budget, such as unforeseen gifts, year-end invitations or unscheduled activities that lead Colombians to excesses.

The situation tends to worsen if we have already acquired debts in the past, hence the important thing is to organize the cash flow in order to adjust it to the budget, and thus avoid going through bad economic and financial times in the first months of the following year.