Researchers estimate that 80% of consumers have started shopping for the holiday season. I shop for eight grandchildren, and I like to spread my spending over several months, so I am part of the 80%. Many people are shopping early to take advantage of promotions. Others are spreading out their spending to avoid hefty credit card balances in the coming year.
Economic forecasters predict that 95% of Americans will celebrate the holidays. The average consumer will spend $1,652 on gifts, food, decorations, clothing, and furnishings. This number is 14% more than last year, even though incomes increased by only about 5%.
As parents and grandparents, we desire to make the holidays special for our children. We encourage them to make lists, and we try our best to fill their lists. But sometimes our budgets do not allow us to indulge our children as we would like. It’s easy to get caught up in the frenzy and spend more than we can afford.
Before you overspend on Christmas purchases, take a hard look at your income and regular bills. Plan a time to sit down and calculate how much you can afford. Find a quiet space and clear your mind from the running to-do list constantly filling your head. Commit to not spending more than you can afford. The following ideas can help you to stay within your budget.
Prioritize. If you are a parent, buying gifts for your children should be first on your holiday shopping list. Beyond the children, you will want to purchase gifts for your spouse, parents, and spouse’s parents. Extended family, co-workers, and friends should be further down the list and may require you to cut if your budget does not allow them.
Set Expectations. If you plan to spend less than usual this year, let your children know they may not find as many gifts under the tree. Be upfront with friends and colleagues with whom you will not be able to exchange gifts this year; they will appreciate your honesty and may be relieved to be purchasing fewer gifts themselves.
Ask for help. If your child has his heart set on a gift that does not fit your budget, ask the grandparents to chip in. They will likely be happy to contribute for the pleasure of knowing their grandchild is getting this special gift.
Start early. Research now for the best prices for the gifts you want to buy. Be alert for sales and promotions. Place online orders early enough not to have to pay for express shipping.
Cut back. Carefully consider all of your spending for your typical holiday celebration. Decide which purchases you can cut out without diminishing your celebration. Reuse gift bags and decorations rather than buying new ones. Design and send e-cards rather than spending money and postage on store-bought cards. Give some homemade gifts. Make most of your desserts and side dishes from scratch.
The spirit of Christmas is giving. As God gave His Son to redeem mankind, we give gifts to those we love. Remember that the amount of money you spend does not reflect your love for someone. Instead, it is the thoughtfulness of the gifts that demonstrates your love to your family members. It is more loving and thoughtful to stay within your budget on holiday spending than to go overboard and deal with financial stress in the new year.
For more information on reducing your financial stress, please read my other blogs on financial management and stewardship. My book Honoring God with Your Money is another excellent resource. You may also want to sign up for my free quarterly newsletter.
Susan's Reflections 
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