PWC predicts American consumers will shell out $1,530 on gifts, travel, and entertainment during the upcoming holiday season, marking a 7% increase from 2022. Up to 40 percent of consumers project they’ll spend more than they did the previous year.
With inflation pushing up prices on nearly all fronts, the holiday season could be a financial and emotional drain. Holiday budgeting can be tough, notably when there’s disparity in financial expectations or spending habits among friends and family.
For holiday lovers keen on enjoying the season without jeopardizing their financial health, these seven strategies will set the stage for financial wisdom and prudence.
1. SET A HOLIDAY BUDGET: Prior to starting your holiday shopping, establish a tight budget that you can afford. Ensure the amount is manageable against your overall financial portfolio. The earmarked amount should not in any way compromise your ability to meet your monthly bills. You can save some more for spending, not by draining your rent funds, but through a responsible financial plan.
2. MAKE A GIFT LIST AND FOLLOW IT: During holidays, the spirit of giving can drive you to overspend. Hence, having a pre-planned budget is paramount. List down key individuals you wish to gift and determine a suitable amount for each. Starting your purchases early, based on the list, will spread out the costs instead of a major outflow later.
3. EXPLOIT PRE-HOLIDAY SALES: Don’t rely on usual sale events like Black Friday, Small Business Saturday, and Cyber Monday. Leading retailers run discounts and offers frequently. Whether you’re hunting for cost-effective gifts or fresh holiday apparel, early-season sales can help you get good bargains on top of beating the holiday rush.
4. COMPARE PRICES AND CHOOSE THE BEST: To get the maximum bang for your buck, scout for sales, discounts, and promotions. Plan your shopping around sales times and use price comparison tools. Do your research and even consider online retailers who may offer better deals.
5. CONSIDER NON-TRADITIONAL GIFTS: If high-cost presents are stretching your pocket, explore other options. Handmade gifts, experiences, or charity donations make thoughtful alternatives. Even spending quality time with your long-distance loved ones could be a heartfelt, budget-friendly gift.
6. DIY YOUR WRAPPING AND DECORATIONS: Hallmark’s research reveals Americans spend around $3.2 billion annually on gift wrapping alone. Cut that cost by making personal, homemade decorations and wrapping paper. This can be an engaging, festive and money-saving activity.
7. EMBRACE SUSTAINABILITY: Opt for economical and durable products to reduce waste and save money. Look for gifts that are environment-friendly, like stainless steel water bottles, solar-powered phone chargers, or toys made of recycled material. Remember that recycling items like cardboard boxes, gift boxes, and Christmas trees can also be beneficial.
