Keep Holiday Stress at Bay by Tracking Seasonal Spending
There is nothing 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 up to wonderful holiday memories… until the credit card statements show up. With rising inflation this year, it can be stressful to make the season bright on a tight budget. But you don’t have to dip into Liam and Olivia’s college savings to create a special time for everyone. Here’s our tips for tracking your seasonal spending to keep the holiday stress at bay.
Make a list and check it twice
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 your list complete, figure out a realistic amount to spend on each person. Jot down a couple of gift ideas in your price range for that 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 months to come.
The most important thing to remember is to plan ahead, and have a set spending amount for gifts, wrap, entertaining, donations and travel.
Shopping
Even after Black Friday, many retailers offer holiday sales and discounts to those savvy enough to find them. Spreading out your holiday shopping over several weeks also makes it easier on your budget. Always shop with a list and keep track of your spending by subtracting 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 know if you’re really getting a deal.
If you’re shopping online, try to order early and be prepared for potential 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 “buy online, ship to store” service. This service is free at most retailers, some of which offer curbside pickup.
Get the best deals on cards, decorations and gift wrap during the days right before and after Christmas. Discounts of up to 75% off can shave a lot off your holiday budget for next year.
Entertaining
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.
Travel
If you’re travelling for the holidays, don’t forget to factor in incidental costs beyond gasoline or the cost of a plane ticket.
If you’re traveling by car, GasBuddy can help you find the best prices for gasoline wherever you are, and 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.
Charitable giving
The holidays are a time for goodwill toward all. But if your budget cannot accommodate a monetary donation, volunteer your time. If you are able to make a financial donation, be sure to check that the charity you are supporting is legitimate by consulting Charity Navigator.
We at Elevate Credit Union wish you all 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. Preparing for the new year? Check out the rest of our MoneySmart Tips Blog.
