Is there anything better than celebrating the holiday season with family and giving to others? However, it’s easy to lose track of spending in the season’s excitement. In fact, according to the 2024 Deloitte holiday retail survey, respondents expect to spend $1,778 (+8 percent year-over-year) this holiday season after expressing record holiday spending intentions in 2023.
Obviously, holiday spending can strain your budget, like the Grinch stealing every Christmas present and decoration in Whoville. Buying gifts, traveling, attending parties, and decorating can get expensive quickly.
1. Plan Your Budget Realistically
A clear, realistic budget is the foundation of responsible holiday spending. To start, determine where you’ll spend your money this holiday season. A few examples would be gifts, decorations, food, travel, and any events you’ll attend. You should also assign a maximum amount to each category to align your overall budget with what you can comfortably afford.Keep in mind that your budget isn’t set in stone, but it will help you make better spending decisions.
2. Make a Gift List and Check It Twice
One of the biggest budget busters during the holidays is impulse shopping. How can you prevent this? Put together a list of everyone you want to purchase gifts for. Ideally, each person should be given a specific idea and a price limit.This will help you stay within your budget and stay focused, especially when you are tempted by holiday sales.
3. Think Outside the Box When It Comes to Gift-Giving
Spending a lot on gifts isn’t always necessary. Homemade gifts, baked goods, and customized experiences are all alternatives you can consider. Besides saving you money, these can also make the gift more meaningful.- Crafting
- Baking
- Scrapbooking
- Creating coupon books for services like babysitting, cleaning, or a home-cooked meal.
4. Shop Smart and Early
Shopping strategically can help you snag great deals during holiday sales. Rather than buying everything at once, start early and look for sales on specific items. Use price comparison apps or browser extensions like ShopSavvy, BuyVia, or Price.com to check for deals and monitor prices over time.5. Take Steps to Avoid Credit Card Debt
Credit cards can be tempting during the holidays—especially if you get cashback or rewards points. Still, 28 percent of credit card users still owe money from last year’s holiday season. To maintain financial health, however, one must use money wisely.When using credit, aim to pay off your balance in full each month to avoid interest charges. Alternatively, you can use a debit card or cash instead of a credit card to stay within your budget.
6. Host on a Budget
The cost of food and decorations can quickly add up if you’re hosting a holiday party. But how can you keep costs down? Simplify the menu, or ask guests to bring a dish for a potluck-style meal. You can also save on annual expenses using items you already have or DIYing decorations.7. Think Carefully About Your Travel Plans
In a recent Bankrate survey, 83 percent of holiday travelers are looking for ways to save money on travel. As such, when planning your holiday travel, check out options early for the best rates.For instance, you might consider traveling on off-peak days. Additionally, you can use reward points if you have accumulated them. Another option is to stay with family or friends to reduce lodging expenses.
To get the best price, compare sites like Google.com/travel/hotels before booking accommodations. Don’t forget that sometimes, calling the hotel directly can result in a better rate.
8. Limit Impulse Purchases
During the holidays, you can easily spend more money on holiday-themed items, festive décor, and extra treats. To combat this problem, a “cooling-off” period should be added before any impulse purchases are made.If you shop online, leave the items in your cart and wait 24 hours before purchasing them to ensure they still feel vital to you.
9. Focus on Meaningful Experiences
Don’t forget that the holidays are not about spending but connecting with others. Some ideas would be;- Explore free holiday events in your area, like tree lightning or Christmas parades.
- Host a holiday movie night and game days.
- Plan game nights with loved ones.
- Bake cookies together.
- Volunteer together at a soup kitchen, visit the elderly, or create a giving box.
