According to PWC, American shoppers are predicted to expend $1,530 this festive season on gifts, travel, and entertainment, marking a 7 percent increase from 2022. With about 40 percent of consumers projected to spend more than the previous year, the holiday period may present financial and emotional challenges. Particularly, setting a holiday budget can be complex when friends and family are not on the same financial wavelength.
If you relish the holiday season as much as I do and aim to fully enjoy it without overspending, here are seven guidelines to follow to maintain your financial well-being.
SET YOUR HOLIDAY BUDGET
Prior to embarking on holiday shopping, establish a strict budget based on your finances, detailing how much you can afford to spend. Ensure it is a manageable number, considering your monthly expenses. The amount available for gift purchases should not be drawn from funds reserved for bills. However, spending beyond what’s left after monthly expenses is acceptable, provided it doesn’t encroach upon your crucial expenses like rent.
CREATE A GIFT LIST AND ADHERE TO IT
When it comes to gifting, it’s easy to overspend, especially in the festive spirit. Therefore, laying out a budget beforehand is crucial. To abide by your budget, jot down the key people you plan to gift and the amount you wish to spend on each. Starting early not only gives you the benefit of time but also eases the financial burden.
HIT THE EARLY SALES
Rather than waiting for traditional holiday sales, explore deals sorted by popular retailers throughout the year. Whether you’re seeking budget-friendly presents or holiday clothing, early-season deals often provide excellent prices, allow you to stay ahead of the holiday demands and prevent last-minute rushes.
SEARCH FOR THE BEST BARGAINS
Scout for sales, promotions, and discounts to secure the best deals for your holiday purchases. Plan your shopping around sales events and use apps or websites that offer price comparison. Retailers generally offer the most attractive deals between Black Friday and Cyber Monday, so remember to research prices and consider online stores with better deals.
EXPLORE NON-TRADITIONAL GIFTING
Instead of pricey gifts, think about alternatives such as homemade gifts, experiences, or charity donations. Consider offering the gift of time, particularly to distant loved ones who might appreciate a visit from you. This can be a significant way to express your gratitude without spending exorbitantly.
DIY DECORATIONS AND GIFT WRAPPING
Americans reportedly spend around $3.2 billion each year only on gift wrap, as per research by Hallmark. Hence, opt for crafting your own decorations and wrapping paper. This is not just a fun and festive activity but can save money compared to buying expensive decorations and commercial gift wrap.
EMBRACE RECYCLING
Inexpensive, less durable items usually wear out fast, generating waste and incurring added costs. Gift options like concert tickets or gift certificates that require minimal packaging can be efficient. Use recycled-content greeting cards to limit paper usage. Choose gifts with low environmental impact like a stainless steel water bottle, a reusable grocery bag, a solar-powered phone charger, or toys made from recycled material. Remember, homemade food items are always popular! Recycle wherever possible including cardboard boxes, electronic items, Christmas trees, and everyday recyclables.
THE TAKEAWAY
