Nothing is more heartwarming than seeing your loved ones’ faces light up when they open that perfect gift you (err, Santa) gave them. Liam’s new bike, Olivia’s new tablet, and that gift card to Mom and Dad’s favorite steakhouse all add to wonderful holiday memories… until the credit card statements appear. With rising inflation this year, making the season bright on a tight budget can be stressful. But you don’t have to dip into Liam and Olivia’s college savings to create a special time for everyone. Here are tips for tracking your seasonal spending to keep the holiday stress at bay.
Many are struggling financially this year, so it will be no surprise to those outside your family if your gift-recipient list is shorter this year. Once you trim your list, make a holiday treat or handmade token for those who got the cut. It really IS the thought that counts.
Once you have completed your list, figure out a realistic amount to spend on each person. Jot down a couple of gift ideas within your price range for each person.
Try a budgeting app like Mint or Honeydue to keep your spending in check. In particular, Mint can be used for regular monthly budgeting and to allocate funds for holiday purchases. Using graphs and reports, it shows how much you’ve spent and how it will affect your budget in the coming months.
The most important thing to remember is to plan ahead and have a set spending amount for gifts, wrapping, entertaining, donations, and travel.
Even after Black Friday, many retailers offer holiday sales and discounts to those savvy enough to find them. Spreading your holiday shopping over several weeks also makes your budget more manageable. Always shop with a list and keep track of your spending by subtracting it from your total budget each time you buy a gift.
In addition to shopping the sales and collecting coupon codes for online purchases, know when to buy. December is the best time to buy cars, appliances, winter clothing, and electronics. Also, know how much items cost before a markdown to see if you get a deal.
Order early if you’re shopping online, and be prepared for shipping delays. Increased shopping during the holidays will affect already-strained delivery companies. To avoid shipping delays and higher shipping costs, shop at stores that offer a “buy online, ship to store” service. This service is free at most retailers, and some offer curbside pickup.
Get the best deals on cards, decorations, and gift wrap during the days before and after Christmas. Discounts of up to 75% can shave a lot off your holiday budget for next year.
If you’re hosting guests for a holiday gathering, keep costs down by asking everyone to bring their favorite side or dessert and include festive recipe cards with the chef’s name. For the adults, serve a warm mulled wine or holiday punch or make one festive signature cocktail.
You can also save by making DIY décor featuring natural items, like holly and pine cones. Gather the kids and go on a hike to find outdoor holiday decorations. Not only will it save you money, but it will also give you some stress-free outdoor time with your family.
Also, try partying without plastic! Disposable plates and dinnerware are not great for the environment or your budget.
If you're traveling for the holidays, remember to factor in incidental costs beyond gasoline or a plane ticket.
If you’re traveling by car, GasBuddy can help you find the best prices for gasoline wherever you are. You can even pay from the app. Don’t forget to prepare for tolls and any emergency costs that may come up.
On a similar note, if you’re flying, consider baggage fees, parking and shuttle costs, and the expense of ground transportation once you arrive.
And don’t forget Fluffy! You’ll need to pay someone to take care of your furry friends. The Rover app can help you find pet care options near your home.
The holidays are a time for goodwill toward all. But if your budget cannot accommodate a monetary donation, volunteer your time. If you can financially donate, check that the charity you support is legitimate by consulting Charity Navigator.
Elevate Credit Union wishes you a happy, healthy, and stress-free holiday. Keep your holiday dollars in check, and you may have some holiday spirit left over even after the last elf is packed away and the January bills start rolling in and preparing for the new year. Check out the rest of our MoneySmart Tips Blog.