Fall has arrived, and with it, the marketing blitz designed to capture your holiday spending has swung into high gear. I am one of those people who start my holiday shopping very early. I ordered my Christmas cards in July, a few new Christmas ornaments in August, and I have several gifts hidden away from the prying eyes of my grandchildren.
I like to spread out my spending and reduce the pressure of last-minute shopping. I am always on the lookout for a great gift or a new, interesting holiday decoration. Starting early helps me enjoy the holidays more, but it also helps me keep my holiday spending under control.
I love the book Skipping Christmas written by best-selling author, John Grisham. It is the basis for the holiday movie Christmas with the Kranks. The story’s protagonist, Luther Krank, is shocked by the amount that he and his wife spend on holiday giving the previous Christmas. He decides that they will cut their spending in half by skipping the holiday altogether and taking a cruise. Of course, things don’t go according to his plan.
It is projected that Americans will spend a record of more than $1 trillion on the holidays this year. At the same time, the majority of Americans says they will cut back on their holiday spending in response to continued inflation. Whether your finances are in great shape, or money is tight and you anticipate cutting back on your holiday spending this year, it is important for you to make a budget for holiday spending and to keep your spending within your budgeted amount.
Holiday spending encompasses much more than the gifts you purchase. As you consider your budget, you need to take into consideration all the different categories of holiday spending and make a plan to reduce spending without totally skipping the holidays. Here are some ideas for your to consider:
1. Gift Wrapping
Wrapping paper, gift bags, tissue paper, ribbons, bows, and gift tags all cost money. The fancier your gift packaging, the more of your budget will be consumed.
- Save money by saving and reusing gift bags.
- Take advantage of free gift-wrapping options offered by retail shops.
- Buy gift wrap at discounted prices at the end of the holiday season. If you did not do that last year, you can save money by purchasing wrapping paper at dollar stores.
- Search online for inexpensive, unique gift-wrapping ideas, such as Gift Wrapping Ideas: 18 Clever and Inexpensive Ways.
2. Holiday Cards and Postage
Include the cost of stamps for mailing holiday cards as well as postage for shipping Christmas presents.
- Save money on cards by purchasing cards at dollar stores.
- Send cards only to people you do not see regularly.
- Save money on postage by sending e-cards or emailing your family’s holiday newsletter rather than sending physical cards through the postal service.
- Save money on shipping gifts by having online retailers gift-wrap and deliver gifts directly to the intended recipient.
3. Decorations
You do not have to purchase all new decorations every year to make your home feel festive.
- Reuse the same decorations from one year to the next.
- Add a few new ornaments and decorations each year to affordably update your décor.
- Search online for affordable, unique decorations you can make, such as 100 DIY Christmas Decorations for a Homemade Holiday.
4. Holiday Meals
Holiday meals can become expensive, especially when you are feeding a large family or entertaining several guests.
- Allow your guests to bring one or more dishes each. This saves you money and ensures that each guest has the opportunity to share their favorite holiday dishes.
- Plan your menu and shop carefully. Purchase ingredients with a long shelf life early when they are on sale. Select affordable proteins to be the center of your meal.
- Cook as many items from scratch as you or your guests can make.
5. Hostess Gifts
If you go to a lot of holiday gatherings, hostess gifts can add up to a lot of money.
- Offer to bring a favorite dish to share rather than purchasing a gift for the hostess.
- Bring a homemade gift, such as a homemade dessert or bread.
- Put together a thoughtful gift basket of inexpensive items you know your hostess enjoys, such as teas and dainty cookies.
6. Event Tickets
If your holiday plans include attending plays or musical performances, you need to factor in pre-event dinners and after-event desserts and drinks. You can save money by:
- Attending matinees or other off-peak performances, such as midweek shows.
- Eating at home before going to the show.
- Purchasing tickets through discount outlets.
- Including some free events, such as church plays and community concerts.
7. Charitable Giving
The holiday season brings out a spirit of charity in most of us. There are many wonderful causes and opportunities to donate presents, food, and money to a wide variety of charitable organizations. Here are some tips to help you stay within your budget.
- Make a budget and stick to it.
- Make a list of the charities you are considering supporting. Rank the charities based on the ones that best match your values and passions.
- Divide your charitable budget among the charities you have decided to support.
- If you plan to donate gifts rather than cash, shop early and buy gifts on sale to stretch your charity dollars.
With some forethought and planning, you can enjoy the traditions that make the holidays special without spending more than you can afford. Planning ahead allows you to enjoy the traditions and time with family and friends that make the holidays special without letting holiday spending become a burden.
