According to PWC, U.S. shoppers are projected to splurge around $1,530 on gifts, travel and entertainment this festive season, marking a 7 percent bump from 2022’s figures. Almost half of them (40 percent) will likely increase their spending compared to the previous year.
Given the current economic climate and expense escalations virtually across the board, celebrating festivities could take its toll emotionally and financially. Maintaining a budget could become challenging, especially when your friends and family don’t share your financial viewpoint or spending approach for the season.
If, like me, you have a deep fondness for the holiday season but are wary of busting your budget, here are seven practical steps you can take now to ensure financial stability, without compromising the festive spirit.
ESTABLISH SPENDING LIMITS FOR THE HOLIDAYS
Before entering the festive shopping period, it’s recommended to create a detailed budget of permissible spending. Take a look at your financial situation and determine an affordable amount.
The funds you can comfortably allocate towards gifts should not be deducting from your bills payment. That being said, if you wish to extend your budget slightly, consider other sources of income rather than savings meant for rent.
MAKE A FUNDED GIFT LIST
In the throes of holiday enthusiasm, it’s easy to go overboard with gifts. Hence, budgeting before shopping is crucial. Create a list of all the people you intend to bless with gifts, along with an estimated amount for each person’s present.
The ideal part of planning early is that you can begin shopping in advance, mitigating the pressure of last-minute purchases. Frequent small gift purchases spread across months will leave your wallet breathing easy at the end of it all.
DON’T WAIT, HIT THE EARLY SALES
Don’t hold out for traditional sale seasons like Black Friday, Small Business Saturday, or Cyber Monday. Most retailers offer discounts throughout the year.
For those on the hunt for affordable gifts or inexpensive holiday gowns, these early sales can present lucrative deals on more expensive items. Shopping early also assures you beat the season-end shopping frenzy.
BEST DEALS ARE EVERYWHERE, FIND THEM
Keep an eye out for sales, discounts, and promotional offers to maximize your savings on holiday purchases. Make use of price comparison websites or apps to get the best bargains.
Typically, the period between Black Friday and Cyber Monday is when retailers propose enticing deals of the year. Prior price research and consideration of online retailers promising better deals can keep you ahead.
EXPLORE NON-TRADITIONAL GIFTING OPTIONS
Why not explore less pricy, more sentimental alternatives to traditional gifts? You could consider homemade crafts, experiences or even charitable contributions. Time can also be a priceless gift — a visit to a distant loved one might be the best present you ever offered.
DO-IT-YOURSELF DECORATIONS AND WRAP
As per a study by Hallmark, Americans dish out approximately $3.2 billion annually just on gift wraps. A cheaper and more enjoyable option could be to design your own decorations and wrapping paper, saving you from overpriced store-bought equivalents.
EMBRACE THE THREE Rs: REDUCE, REUSE, RECYCLE
Low-cost, poor quality purchases tend to wear off fast, leaving behind waste and draining your pocket. Favor gifts that don’t require elaborate wrapping, such as event tickets or gift vouchers. You can use greeting cards made from recycled content, reducing demand for fresh paper.
Consider eco-friendly gifts like a stainless steel water bottle, a reusable shopping bag or a solar-powered phone charger. For fun, nothing beats homemade cookies. Make it a point to recycle bulky items like cardboard boxes, gift boxes, gadgets, and Christmas trees.
ALL THINGS CONSIDERED
Establishing strict financial boundaries during holiday times is a smart and responsible way to manage your resources while still relishing the season. This approach encourages a healthier, more sustainable reciprocal relationship with your money. It curbs excessive spending at a time when costs can skyrocket due to a multitude of expenses such as presents, home decoration, travel, and events.
By setting clear financial borders, it reduces anxiety over money during the holiday season, and prevents saddling yourself with post-holiday credit card debts. Unchecked expenses often lead to poor purchasing decisions, which could hamper progress towards other monetary targets.
