PWC anticipates that American shoppers will put forth approximately $1,530 on holidays for items like gifts, travel, and entertainment. That’s a 7% increase compared to 2022, and about 40% of consumers are predicted to outspend their previous year’s expenses. Considering the escalating prices of practically everything, holiday expenses can be emotionally and financially burdensome. This is particularly true if holiday budgeting is necessary and there may be divergent views about finances among friends and family.
But fret not, if your love for the holidays is just as mine and you’re aiming to make the most out of it without causing financial tension, here are seven tips to ensure your financial wellness this season.
SET UP A HOLIDAY BUDGET
Before going on a holiday shopping spree, sit down and establish a robust budget. Gauge your finances and determine a comfortable spending limit. It’s essential to note that spending for gifts should not compromise your bill payments. However, don’t limit your spending to just your end-of-month excess funds. As long as you’re not compromising your vital costs, you’re on the right track.
STICK TO YOUR GIFT LIST
It’s easy to get carried away with holiday spending. Hence, having a budget in place is crucial. To maintain your budget, make a list of the people you intend to buy presents for and the amount you’d like to spend on each person. The advantage of planning early is that you can start buying gifts periodically, easing your wallet’s strain later on.
TAKE ADVANTAGE OF EARLY SALES
Don’t linger for the standard sales events like Black Friday and Cyber Monday alone. Great deals and discounts are continuously presented by popular stores. Whether you need affordable gifts or additions to your holiday apparel, early shopping can get you excellent prices on the pricier items you’ve had your eye on.
LOOK FOR THE BEST BARGAINS
Search for sales, discounts, and promotional offers to maximize your savings on holiday expenditures. Coordinate your shopping with sales events and utilize apps or websites that compare prices for you.
GIVE NON-TRADITIONAL GIFTS
Instead of pricey gifts, consider alternatives like homemade presents, experiences, or charitable donations. Perhaps giving your time can be the most meaningful gift, especially for distant relatives who would appreciate a visit.
DIY FOR THE HOLIDAYS
Buying wrapping paper alone can take a toll on your budget. Americans are known to spend roughly $3.2 billion yearly on gift wrap according to Hallmark research. Be innovative – fashion your wraps and decorations. This can not only be enjoyable and festive but also a budget-friendly alternative to extravagant decorations and wraps.
EMBRACE SUSTAINABILITY
Less costly, low-quality items often deteriorate quickly, resulting in wastage and unnecessary cost. Consider giving gifts with minimal packaging or those with environmental benefits.
IN SUMMARY
Implementing financial boundaries during the holidays is a proactive and financially responsible approach. This prevents overspending and saves oneself from post-holiday debt and financial stress. It allows you to take pleasure in the season without risking your financial stability, cultivating a healthier and more sustainable relationship with money.
