The holiday hustle and bustle is now upon us. The holidays are a time of joy, family gatherings, and ‘tis the season of spending. It can be a stressful time, but it’s important to keep it in perspective and remember why we go to all the effort.
The tips below will help you create an effective holiday budget, ensuring that celebrations remain merry and bright without financial strain.
Create a spending plan. Money can leave your wallet quickly for gifts, special meals, decorations, and travel. Decide how much you’re going to spend in each of these areas and stay in that range.
Take inventory. Before you rush out to buy decorations, gift bags, and bows, check to see what you have from last year. The same is true for presents you may have stashed throughout the year.
Plan holiday meals early. Knowing what you’re going to cook well in advance allows you to watch for sales on the nonperishable items you’ll need. It also helps spread the higher food costs over a couple of paychecks instead of one. Check your pantry first to see if you already have any of the ingredients the recipes need. Then, make a detailed list of what you need before heading to the store. Buying only what is needed can help you avoid spending money on unnecessary extras.
Create a gift list. Write down everyone you intend to buy gifts for, along with a price limit and potential gift ideas. This preparation can help you find the best deals and avoid impulse purchases. Impulse shopping is one of the biggest budget busters during the holidays.
Consider reducing the number of gifts you buy. Draw names with family and friends or pool your gift budgets and make a charitable donation as a group. Consider group gifts or family gifts instead of individual ones.
Use cash. Use cash instead of credit to make purchases. It’s easier to overspend when paying with a credit card.
Take advantage of sales and offers. The holiday season is marked by numerous sales events, including Black Friday, Small Business Saturday, and Cyber Monday. Take advantage of these opportunities to purchase gifts and decorations at discounted prices. If shopping online, check for relevant promotional codes before checking out. Before purchasing an item, be sure to check if a coupon is available. Websites like Coupons.com, RetailMeNot.com, and BlackFriday.com are useful for finding sales, coupons, and holiday shopping tips.
Use your smartphone while shopping. Many retailers can send coupons directly to your phone when you walk into their stores. You can also use your phone to compare prices and ensure you’re getting the best deals.
Bundle shipping. Whenever possible, combine orders to reach the minimum threshold for free shipping. Review each retailer’s shipping policy and plan your purchases accordingly. Don’t lose money in the name of a ‘deal.’
Consider handmade gifts. Homemade gifts are a great option if you’re crafty or a whiz in the kitchen. Handmade gifts, such as cookies, decorative wreaths, crochet or knitted items, pottery, or homemade sauces, jellies, and jams, often carry deep sentimental value for both the giver and the receiver. “Coupons” for your services, such as babysitting or snow shoveling, can also make good presents. These thoughtful gestures can be significant for loved ones without breaking the bank.
Focus on experiences. The holidays are about creating memories, not financial stress. Meaningful experiences are more personal and less costly than store-bought presents. Shift the focus away from material gifts toward experiences, such as volunteering, baking cookies with loved ones, or attending free local events. This can reduce your overall spending while still delivering holiday joy. Experiences create lasting memories and meaningful moments that your loved ones will remember fondly for years to come.
Track your spending. Monitoring your spending is crucial for adhering to your budget. Regularly checking your spending against your budget helps you stay on track and make informed financial decisions. Strategic shopping maximizes the value of your budget.
Search hotel rates and airfares online. Make your travel plans as early as possible. Take advantage of websites that compare airfares and hotels to make sure you get the best deal. Many will also alert you to price drops.
Travel smart. If traveling by plane or car during the holidays, stopping to purchase food can become expensive. Pre-pack healthy snacks in your carry-on bag or suitcase, such as trail mix, granola bars, nuts, or dried fruits. If driving, pack a cooler with plenty of snacks, sandwiches, and beverages.
Instead of purchasing bottled water, take your own water bottle. Airports and hotels often have water stations, allowing you to refill your bottle without incurring additional costs.
Add holiday cheer. Play holiday music, drive around town to see the lights, participate in a scavenger hunt, bake pies or cookies with family or friends, decorate gingerbread houses, go caroling, adopt a senior citizen for the holidays, or create holiday crafts. Read holiday stories and books, decorate the tree, make a paper chain countdown, watch Christmas movies in pajamas, or scrapbook the year’s events. Go to a religious service.
The holiday season can be one of the most magical times of the year, but it can also be stressful for your wallet. With thoughtful planning, it’s possible to enjoy the festivities without financial regret.
Written by Vicki Hayman, MS, University of Wyoming Extension Community Vitality & Health Educator
Sources:
- Mississippi State University Extension, extension.msstate.edu
- Utah State University Extension, extension.usu.edu
- University of Arkansas Cooperative Extension Service, www.uaex.uada.edu