According to PWC, American consumers will likely spend an average of $1,530 on gifts, travel, and entertainment during the upcoming holiday season—a 7% increase compared to 2022. Notably, 40% of consumers plan to outspend their expenditures from the previous year.
Given the inflation across various sectors, celebrating holidays could exert significant emotional and financial duress. Budgeting for this festive season can be challenging—especially if your loved ones have different views on holiday spending.
For those of us who enjoy the holiday season and wish to celebrate without straining our finances, I suggest embracing the following seven strategies to enable financial success:
1. IMPLEMENT SPENDING CAPS: Determine your holiday budget before you start shopping. Evaluate your finances to decide on a feasible amount for expenditure. Ensure the assigned budget won’t deprive you of essential needs or financial freedom.
2. CREATE A LIST & STICK TO IT: The festive spirit can often tempt you into excessive spending. To avoid this, prepare a list of people you plan to buy presents for and the amount you’ll spend on each. This will mitigate the impact of mass expenditure at once, allowing for the early and spread-out purchase of gifts.
3. CAPITALIZE ON EARLY SALES: Sales occur throughout the year, so do not restrict yourself to post-thanksgiving deals. Early purchases can ensure cost efficiency while avoiding the holiday rush.
4. COMPARE PRICES: Keep an eye out for sales, discounts, and promotions for the best bargains. Utilize apps or websites for price comparisons. Look out for the best offers between Black Friday and Cyber Monday—an era famed for price reductions.
5. EMBRACE ALTERNATE GIFTING IDEAS: Costly gifts aren’t the only options. Consider alternatives like homemade gifts, experiences, donations, or quality time with distant loved ones. This heartfelt approach can save money while expressing your fondness.
6. DIY DECORATIONS & WRAPPINGS: Bespoke decorations and wrapping paper are not just creative and enjoyable; they save you some cash as well. This can substantially reduce the estimated $3.2 billion Americans spend annually on gift wrap (as per Hallmark’s research).
7. REDUCE, REUSE & RECYCLE: Opt for gifts that use less packaging or those with environmental benefits. Aim to minimize and recycle waste—everything from large cardboard boxes to Christmas trees.
Undoubtedly, following these prudent steps will prevent overspending and reduce financial stress—as commonly experienced during and post-holiday season. This also serves to avoid piling up credit card debt and the regret of impulsive, hindering purchases.
Remember to prioritize these financial boundaries to maintain financial health, curtail unnecessary expenses, and enjoy a guilt-free, joyful holiday season.
Source: SmartAsset.com
