It’s projected that Americans will expend $1,530 on gifts, travel, and entertainment this festive season – a 7% rise from 2022, reveals PWC. Around 40% of consumers are presumed to surpass their last year’s expenditure. With mounting expenses, the holiday season can indeed pose significant emotional and financial challenges. This is particularly acute for those intending to budget their spendings, especially when loved ones have differing fiscal heritages and indulgences during the season.
If, like me, you cherish the festive season and wish to relish it without straining your budget, follow along for seven beneficial financial tips you can incorporate right away.
DETERMINE HOLIDAY EXPENDITURES
Before commencing your holiday shopping, take time to formulate a solid budget that suits your finances. Ensure that this is a figure you can comfortably manage. Ideally, your gift expenditure should stem from funds not allocated for bills. However, should you desire a tad more spending allowance, it doesn’t necessarily need to be whatever is left over after your bills. As long as you’re not disrupting essential payment obligations such as rent, you’re on the right track.
DESIGN A LIST AND ADHERE TO IT
Given the festive aura, it’s rather easy to exceed your budget in the spirit of gift-giving. That’s why having a preset budget is pivotal. To aid in sticking to your budget, jot down the main recipients, alongside the intended spending amount for each. An early start to this practice enables you to commence purchases sooner as well, making the financial impact less abrupt.
GET STARTED WITH EARLY SALES
There’s no need to hold out for usual seasonal sales like Black Friday, Small Business Saturday, or Cyber Monday with plenty of attractive deals persistently offered by popular retailers. Shopping for early deals can fetch good prices for desired items and save you the later holiday rush.
SEARCH FOR THE BEST BARGAIN
Be on the lookout for sales, discounts, and attractive promotions for your holiday shopping. Plan purchases around sales events, and employ apps or websites comparing prices. Retailers are likely to feature major deals between Black Friday and Cyber Monday – a perfect opportunity to research prices and also consider online retailers for potential better offers.
CONSIDER ALTERNATIVES TO CONVENTIONAL GIFTS
Instead of costly gifts, think about alternatives such as homemade gifts, experiences, or even philanthropic contributions. A heartfelt visit could mean the world to loved ones living afar, providing a beautiful expression of appreciation without draining finances.
DO-IT-YOURSELF DECORATIONS AND GIFT WRAPPING
Americans annually spend roughly $3.2 billion on gift wrapping as per Hallmark’s research. Opt to get creative by producing your own decorations and wrapping paper – a fun festive endeavor that saves considerable money as compared to buying pricey decorations and gift wrap.
REDUCE, REUSE AND RECYCLE
Economical, less durable items tend to quickly wear out, leading to wasteful spending. Opt for gifts that require minimal packaging, like concert tickets or gift certificates, and send cards made from recycled material. Gifts with a green footprint, like a stainless steel water bottle, a reusable grocery bag, a solar-powered handset charger or toys from recycled material make excellent choices. And remember, homemade baked treats are always a hit. Recycle large cardboard boxes, gift boxes, electronics, and Christmas trees, along with everyday recyclables wherever possible.
KEY TAKEAWAY
