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Speaker 1: You're listening to the Saturday Morning with Jack Teams podcast

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Speaker 1: from News Talks.

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Speaker 2: That'd be the weather is getting warmer, the strawberries are

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Speaker 2: getting jiggled, and what seven or eight weeks from Christmas,

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Speaker 2: which means that spending season is fast approaching, and that

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Speaker 2: too means that.

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Speaker 3: The allure of credit cards for many is stronger than ever.

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Speaker 3: Our personal finance expert Lisa Dudson is here with us

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Speaker 3: this morning with a bit of a word of warning. Lisa,

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Speaker 3: at this time of year.

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Speaker 4: Morning, Jack, that doesn't sound like we're off to a

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Speaker 4: good start.

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Speaker 3: As you know, I here to scold us. You just

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Speaker 3: here just to gently nudge us in the right direction

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Speaker 3: towards the decisions.

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Speaker 4: Absolutely so, definitely a tough time a year, right because

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Speaker 4: I guess, particularly after the last couple of years, a

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Speaker 4: lot of us have been doing it really tough, and

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Speaker 4: you know, the bank accounts are probably a little bit

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Speaker 4: on the skinny side at the moment, and I guess

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Speaker 4: you know, there is that temptation to be getting out

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Speaker 4: there and buying things for your holiday break and for

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Speaker 4: Chris stay and for gifts, and then wake up in

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Speaker 4: January and I play your credit card bill and have

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Speaker 4: a bit of a shock. So I was trying to

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Speaker 4: find a bit of a balance to that, and I

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Speaker 4: think that probably the best way to do that is

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Speaker 4: to give yourself a budget and do a bit of

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Speaker 4: planning on it, because I think what a lot of

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Speaker 4: us do is we're getting a bit of a flat

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Speaker 4: and we run around, you know, and them all just

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Speaker 4: a few days for christ and think, oh my gosh,

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Speaker 4: you know what am I going to buy? And you know,

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Speaker 4: you're often overspend and not think things through. So it's just,

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Speaker 4: you know, it's a bit painful, I get it, you know,

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Speaker 4: but just sitting down and going, well, what can I

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Speaker 4: forward and you know, think about who I need to

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Speaker 4: buy for and what makes sense. And the other really

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Speaker 4: good thing that I think is interesting is we buy

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Speaker 4: a lot of stuff for people that they don't really

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Speaker 4: need or they don't really want, because we feel that

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Speaker 4: we need to give them a gift. But what about

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Speaker 4: a gift of spending time with them, a gift of

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Speaker 4: you know, babysitting so you know they can get out

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Speaker 4: with their partner. You know, what about consolidating gifts within

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Speaker 4: a family so you just find one person for There's

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Speaker 4: a lot of smart ways that you can cut down,

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Speaker 4: you know, your expenditure at this time of the year.

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Speaker 3: Absolutely, because honestly, I reckon that people are generally on

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Speaker 3: the same page with that. Like even in our family,

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Speaker 3: for example, we just go like, for because there are

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Speaker 3: increasing numbers of kids, right, and so we just say

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Speaker 3: instead of all the auntle's uncles and aunts giving you

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Speaker 3: a gift separately, or just do it like a combined

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Speaker 3: something and it'll be like a board game or something

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Speaker 3: like that that everyone can play, you know, which kind

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Speaker 3: of makes sense.

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Speaker 4: Yeah, totally, And then you get something that's probably a

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Speaker 4: little bit more useful. And then I think, you know,

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Speaker 4: it's part of me. The GREENI in the says, you know,

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Speaker 4: all these toys that you know, the kids play with

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Speaker 4: five minute flat and then they landfallactly. I don't think

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Speaker 4: it's particularly helpful either, but I think it. But they

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Speaker 4: also you know, whether you would have had a discussion

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Speaker 4: in your family and planned for that, right, So it

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Speaker 4: comes back to that planning and actually being organized, so

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Speaker 4: you know you're starting to deal with it now and

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Speaker 4: not week for Christmas.

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Speaker 3: Yeah, So for credit cards, that means I mean making

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Speaker 3: a decision like that will obviously mean a little less

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Speaker 3: pressure on your credit card than you might otherwise have.

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Speaker 3: But what other kinds of things to just keep an

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Speaker 3: eye on heading into the silly spending season.

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Speaker 4: Well, it's interesting with credit cards because I think the

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Speaker 4: first credit card came out by Amex and something like

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Speaker 4: nineteen eight off the top of my head, and it

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Speaker 4: was called your Flexible Front right, and the IRI and

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Speaker 4: of that kind of the news with me, and you know,

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Speaker 4: because they're awesome because they are super flexible, But on

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Speaker 4: the other side of it, they're pretty painful when you

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Speaker 4: don't have the money to pay for it or you're

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Speaker 4: paying a twenty percent interest on it, and I think,

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Speaker 4: you know it, possibly a better way of dealing it

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Speaker 4: with it is actually saying, Okay, well my budget's five

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Speaker 4: hundred dollars, pick a number, and you go to the

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Speaker 4: ATM and you take out five hundred dollars in cash

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Speaker 4: if you can, and then you know you've gottually got

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Speaker 4: the tangible cash to spend and sometimes a get with

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Speaker 4: more challenging spending it today than what it used to

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Speaker 4: be with everyone using cards or use a debit card,

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Speaker 4: because there is a lot of research that says that

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Speaker 4: if you use cash as opposed to credit, you spend

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Speaker 4: about twenty percent.

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Speaker 3: Less, right, that's interesting, that's that's a lot less. That

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Speaker 3: is like twenty percent.

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Speaker 4: Yeah, yeah, well but you know you take that over

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Speaker 4: the course of a year and the more subsequently many years.

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Speaker 4: It's well because it's you think about it. When it's cash,

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Speaker 4: it's like there's a physicality to it, right, and it's

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Speaker 4: in your in your wallet, whereas you're tapping and these

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Speaker 4: days it literally is a tap, right.

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Speaker 3: So yeah, it's increasingly frictionless.

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Speaker 4: Yes, yes, that's right. And then you know that has

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Speaker 4: a has a cost at the end of the day.

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Speaker 4: So you know, taking out cash, I think is a

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Speaker 4: really great way to manage it if you can do that.

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Speaker 4: But it really it just comes down to, you know, planning. Yeah,

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Speaker 4: you know, it's that kind of it's that kind of

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Speaker 4: boring word. Really, at the end of the day, planning, budgeting,

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Speaker 4: being organized will just save yourself a lot of grief

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Speaker 4: in January. And then remembering that most people value time,

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Speaker 4: you know, gifts that don't need to recost money. Yeah,

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Speaker 4: experience and experience here, all that stuff is way more

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Speaker 4: valuable than a lot of the rubbish that we buy

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Speaker 4: for each other.

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Speaker 3: Yeah, no, for sure. Hey, great advice.

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Speaker 4: So those are my tips?

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Speaker 3: Yeah, very good. It makes a lot of sense, Thank you, Lisa,

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Speaker 3: and good to get a nice and nearly too, just

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Speaker 3: because what we should do is we should just we

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Speaker 3: should just clip this up and then repeat it every

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Speaker 3: every three weeks leading up to Christmas, because it's especially

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Speaker 3: for those people who are freaking out four days before

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Speaker 3: Christmas and are trying to throw money at problems. I

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Speaker 3: think it's very very good advice. Lisa Dudson, our personal

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Speaker 3: finance expert, with us this Morning.

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Speaker 1: For more from Saturday Morning with Jack Tame, listen live

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Speaker 1: to news talks that'd be from nine am Saturday, or

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