Financial planning may not be top-of-mind for Canadians during the holiday season, but advisors can help clients remain financially responsible through the season.

The Financial Planning Standards Council has issued a number of tips to help Canadians enjoy a meaningful — and fiscally responsible — holiday season. Advisors can use these tips to remind clients to keep financial considerations in mind during the holidays.

Such a reminder may be especially important this year, given the impact that the recession has had on Canadians’ personal finances.

“This was a difficult year for many Canadians, so this may just be the holiday season to think outside of the box when it comes to spending, gifting and planning for the year ahead,” said Tamara Smith, vice president of marketing and consumer affairs at the FPSC.

The FPSC urges advisors to take another look at “SANTA” with these five tips:

• Start a savings plan for the children: Although children always enjoy the latest toys, an investment in their future is an invaluable gift that will be appreciated for many years. Advisors could help clients set up a savings account for their children, or invest in their future with a Registered Education Savings Plan or another investment plan.

• Activate generosity: Advisors can remind clients of the true spirit of the holidays: giving. It’s an ideal time for families to engage in volunteering for a good cause, or to make a donation to a favorite local not•for•profit group or charity. Advisors can also remind clients of the tax benefits of such generosity.

• Needs and wants: The holiday season also presents an ideal opportunity to remind clients of the difference between needs and wants. Advisors could have a conversation with clients about the importance of planning and saving for wants within their means – including holiday treats.

• Time: Encourage clients to reflect on their goals, and remind them that financial planning is really all about putting the right financial strategies in place to meet life goals. Encourage them to consider both the long• and short•term goals, and get them to commit to putting a plan in place to help them get there.

• Accountability: Remind clients to stay accountable to their budget to avoid unnecessary debt to fund gift giving. Clients can use such strategies as making a list of the people they’re buying for and attaching a budget to each person. This will help clients resist impulse buys.

IE