This festive season, the average American shopper is poised to spend roughly $1,530 on presents, travel, and leisure, a significant 7% increase from 2022, according to PWC. Among these consumers, four out of ten are expected to spend even more than what they shelled out last year.
Given the surge in costs for almost everything, holiday festivities could be both emotionally and financially burdensome. Budgeting for the holiday season may constitute a major challenge, particularly if your loved ones have differing viewpoints regarding expenditures during this period.
If you’re a die-hard fan of the festive season and want to enjoy it to the fullest without exceeding your financial limit, consider these seven financial strategies that you can embed now for a more prosperous season:
DEFINE A SPECIFIED HOLIDAY BUDGET
Before you embark on your holiday shopping spree, set a specific budget in line with your financial capability. Examine your financial situation thoroughly to determine an affordable amount. The money you should set aside for holiday expenses should not affect your regular bill payments. You may want to save extra money if you plan to spend more, as long as you are not taking it out of your rent.
CREATE A GIFT LIST AND ADHERE TO IT
Avoid impulse buying during the gift-giving season by setting a budget in advance. Make a list of the main people you wish to gift and determine a spending limit for each person. Initiating this process earlier enables you to start your shopping in advance, thereby preventing a major, sudden drain of resources in the holiday season.
CAPITALIZE ON EARLY DISCOUNTS
Why wait till Black Friday, Small Business Saturday, or Cyber Monday when there are deals and discounts throughout the year? Shopping during these preliminary sales not only saves you money but also keeps you ahead of the holiday rush.
SEARCH FOR THE OPTIMAL DEAL
To make the most of your purchases, make sure to look around for discounts, deals, and promotional offers. Use comparative pricing websites or apps to find the best prices. Remember to research prices thoroughly, and consider online vendors who may have more competitive prices.
LOOK BEYOND CONVENTIONAL EXPENSIVE GIFTS
In lieu of pricey gifts, contemplate alternatives such as DIY gifts, experiences, or donations. Consider giving the gift of time by visiting those who live far away. This cost-effective approach makes your loved ones feel cherished.
OPT FOR DIY DECORATIONS AND WRAPPING
Americans spend an estimated $3.2 billion annually on gift wrap, as stated by research from Hallmark. Opt for homemade decorations and gift wrap to limit expenses, while simultaneously creating fun and festive memories.
EMBRACE SUSTAINABLE CHOICES
Short-lived, inexpensive products can quickly wear down and cost you more in the long run. Offer gifts that require minimal packaging, like concert tickets or gift vouchers. Select environment-friendly gifts such as a stainless steel water bottle, reusable shopping bag, solar-powered phone chargers, or toys made from recycled components. Moreover, homemade baked goods are always adored gifts. Always aim to recycle items like large cardboard boxes, gift boxes, electronics, and Christmas trees.
THE TAKEAWAY
Setting up financial boundaries for the holidays is a practical and thoughtful path towards healthy financial management. It allows you to savor the festivities without jeopardizing your financial health or compromising your financial aspirations. By preventing potential overspending, reducing financial stress, curtailing post-holiday debts, and resisting impulsive buys, these financial boundaries can make your holiday season more enjoyable and less stressful.
