'It's A Never-Ending Merry-Go-Round,' Says Dave Ramsey As Couple Spends $1,200 On Stockings And $360 On Kids' Books For 12 Adults

A Missouri man told "The Ramsey Show" that his family's Christmas traditions are leaving his wallet empty. 

Dale said his wife's relatives spend thousands each year on stockings, books, and gifts — even though all 12 recipients are adults. Personal finance coach Dave Ramsey called the pattern "it's a never-ending merry-go-round" and urged the couple to bring "a touch of common sense" before the holiday season begins.

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When Family Traditions Turn Pricey

Dale explained that every Christmas, each adult receives a children's book from "Santa," a practice his wife has carried on from her grandparents. "It's her sister, her father, her sister's kids — and now one of them has a baby," he said. The books cost about $30 each, totaling $360.

Ramsey questioned why the tradition still continued. "Once you're 40, you don't really need a children's book," he said. Dale admitted the books quickly lose their appeal. "We look at them for 20 seconds and then they just go away," he said.

$1,200 Stockings And No Budget

The stockings, Dale added, cost between $200 and $300 each. He and his wife — along with her sister — buy and fill most of them. Combined with other gifts, the spending reaches roughly $3,000 a year. 

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Despite earning about $210,000 annually, Dale said they "don't really plan for it even though we know it's coming."

Ramsey asked about their finances, learning that they owed $100,000 on a $200,000 home and had saved about the same amount for retirement. He said their $3,000 holiday spending was only about 1.5% of their $210,000 household income.

"It's not the money," Ramsey said. "You've just been going along with something that doesn't make sense anymore."

Time To Rein It In

Co-host Rachel Cruze said the problem stemmed from poor financial habits rather than Christmas spending alone. "You have no planning with your income," she told Dale. "You already said you're not good budgeters. That's why it feels out of control." Cruze recommended using a written plan or a budgeting app to regain control.

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Ramsey added that his own family once dealt with similar overspending during the holidays but eventually simplified their approach by drawing names for gift exchanges and focusing mainly on the children.

Planning Before December

Ramsey urged the caller to plan their Christmas spending ahead of time, saying discussions about budgets should happen well before the holiday season begins.

He also suggested making a gift list, assigning dollar amounts beside each name, and sticking to that total. "And then that cash runs out of that envelope. Christmas be over, baby," Ramsey said. 

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