PWC predicts American buyers will shell out a total of $1,530 for gifts, traveling and leisure activities this holiday season, a rise of 7% compared to 2022. Approximately 40% of shoppers plan to splash out more than they did the previous year.
With prices on the increase, holiday preparations can be financially and emotionally challenging. Budgeting for holiday expenses is especially arduous if your loved ones have different views on spending during this time.
If, like me, you thoroughly enjoy the holiday season and are determined to get the most out of it without straining your financial resources, continue reading to find out about seven strategies that can position you for fiscal success.
ESTABLISH A HOLIDAY BUDGET
Before embarking on your holiday shopping spree, determine a realistic budget. Review your finances to confirm how much you can comfortably spend on holiday activities. Make sure to use money that won’t interfere with your ability to pay bills. If you’re looking to increase your budget, use only cash that doesn’t include your rent or important bill money.
STICK TO YOUR GIFT LIST
Spending tends to get out of hand during the holiday season. Constructing a budget beforehand helps to prevent overspending. Writing a list of the people you plan to buy gifts for and deciding how much you’re willing to spend on each will help you stay within the established budget.
Preparing your list early allows for earlier shopping as well, preventing a drastic hit to your wallet nearer the holiday.
CATCH EARLY SALES
Don’t wait for well-known holiday sales to start shopping. Engaging in early-season sales can allow you to find great deals on items you’ve been wanting. Doing your holiday shopping early also gives you a head start and a break from the last-minute rush.
HUNT FOR THE BEST DEAL
Scour sales, discounts, and promotions to find the sweetest deals on your holiday purchases. Make use of apps or websites that make price comparisons easy, and don’t be shy to explore online retailers for potentially better offers.
CONTEMPLATE ALTERNATIVE GIFTS
Rather than going for expensive gifts, ponder alternatives, such as handmade gifts, experiences, or philanthropic contributions. Even spending time with distant loved ones can be a valuable gift, proving you can express gratitude in meaningful ways without splurging.
CREATE YOUR OWN DECORATIONS AND GIFTS WRAP
A chunk of money can be saved by creating your own decorations and gift wrappings. It’s a creative and festive way to save money that would have otherwise been spent on store-bought decorations and wrapping paper.
GO GREEN
Giving gifts that require minimal packaging, like concert tickets or gift vouchers, can help save money and reduce waste. Eco-friendly solutions like a stainless-steel bottle, reusable grocery bag, or a solar-powered charger can make for thoughtful presents.
BOTTOM LINE
Establishing fiscal boundaries during the holiday period is a smart, proactive, and responsible approach to managing your finances. It allows for full enjoyment of the season without compromising financial stability, fostering a healthier and more sustainable relationship with money:
Financial boundaries prevent overspending during the holiday season, reducing financial stress and the risk of debt accumulation. They also discourage impulsive spending and support progress toward achieving financial goals. Finally, setting financial boundaries helps to mediate post-holiday debt, which can accumulate over time and lead to hefty interest charges.
SmartAsset.com
