PWC anticipates that US shoppers will lay out $1,530 in the forthcoming holiday season on presents, travel, and entertainment—a 7 percent increase from 2022. Approximately 40 percent of these individuals will surpass last year’s spending.
The cost of nearly everything is increasing, making holiday expenses a considerable strain both emotionally and financially. Budgeting for the festive period can be challenging, especially when your fiscal perspective and spending habits differ from those of your loved ones.
If you’re keen on enjoying the holidays without depleting your wallet, the following seven strategies can help secure your financial stability during this period:
DEFINE A HOLIDAY BUDGET
Sketch a tight budget for your holiday expenditure before initiating any shopping. Analyze your financial circumstances to determine a comfortable spending limit.
Ensure the amount you allocate for gifts does not compromise your ability to pay bills. If you’d like to add some leeway, consider any disposable income that isn’t consumed by your living expenses as long as it doesn’t tap into your rent money.
CREATE A GIFT LIST AND ADHERE TO IT
The festive spirit can push you into exceeding your budget on presents, making pre-holiday budgeting crucial. Create a list specifying who you’ll buy gifts for and how much each gift will cost, to help stay within your predefined limit.
Getting an early start on this list can allow you to buy presents sporadically, therefore lessening the financial strain as the holidays approach.
TAKE ADVANTAGE OF EARLY SALES
Don’t wait for annual sales events like Black Friday, Small Business Saturday, and Cyber Monday. Many retailers offer discounts and deals throughout the year.
Early shopping can help you obtain items at bargain prices and bypass the festive shopping commotion.
SEARCH FOR THE BEST DEALS
Watch out for sales, bargains, and promotional offers to maximize your buying power. Schedule your shopping in sync with sales events and utilize apps or websites that compare prices.
Expect retailers to present their most generous offers during the customary discount period from Black Friday to Cyber Monday. Do your pricing homework and consider online vendors that may have more appealing deals.
EXPLORE NON-TRADITIONAL GIFT OPTIONS
Contemplate substituting costly presents with alternatives like homemade gifts, experience-oriented presents, or charitable contributions. Rather than a material gift, consider spending quality time with distant relatives and friends—a heartfelt and budget-friendly gesture.
USE DIY DECORATIONS AND WRAPPING
Americans shell out about $3.2 billion each year on wrapping paper alone, according to Hallmark. Try crafting your own festive decorations and gift wrap—this can serve as a budget-friendly and enjoyable activity.
ADOPT ECO-FRIENDLY PRACTICES
Inexpensive, poor-quality products often have shorter lifespans which, in turn, contributes to waste and drains your budget. Opt for gifts requiring minimal packaging, such as concert tickets or gift vouchers. Use recycled greeting cards to lessen paper consumption.
Consider eco-friendly gifts, such as stainless steel water bottles, reusable shopping bags, solar-powered phone chargers, or toys made from recycled material. Bake homemade goodies or recycle items such as large cardboard boxes, gift boxes, electronics, and Christmas trees.
THE TAKEAWAY
Proactively setting financial limits during the holiday season aids in prudent financial management. This strategy can alleviate increased spending tied to holiday gifts, decorations, and celebrations. Financial boundaries also help avert post-holiday credit card debts and unwise, spur-of-the-moment purchases, making holiday celebrations more stress-free and enjoyable.
