Holiday expenses can be a real burden on many families. Gifts, meals, special events, travel… it all adds up! How can you make sure you don’t go into debt while still being able to enjoy all the holiday season has to offer? Try these expert tips:
Create a gifting plan
Consumer finance expert Andrea Woroch warns prices may be higher than what you’ve experienced in the past, and recommends reassessing your gifting plan. That may mean narrowing down who you’re giving gifts to this year, or adjusting the type of gifts you’re giving.
“Set gift expectations with family and friends,” she says. “Maybe you just focus on the kids this year, or you set up a Secret Santa and everybody's responsible for one gift rather than multiple. This way you can give a better gift than giving smaller and insignificant gifts that kind of just feel like a waste of money.”
Set a budget
Once you have determined who you're buying gifts for, it's time to set a budget. Shopping expert Trae Bodge recommends starting with an evaluation of what you bought and spent last year. This will help you see whether or not you need to cut back on how much you're spending on each person you're planning to exchange gifts with.
"Stay on track by creating a list and a budget for each person," Bodge says. "Keep that list somewhere accessible — like on your phone — and keep it up to date as you purchase gifts."
Prepare your finances
Planning ahead means you have time to clean up other aspects of your spending to make room for your holiday shopping and travel budget.
“What I suggest is going through your budget and reevaluating where your money is going,” Woroch says. “This is a great time to check in on your spending and figure out if there is any waste happening,”
Are you subscribed to a video streaming service or a gym membership you’re not using and can cancel? Is there a new promotion you can qualify for with your cable provider? Can you bundle your insurance policies to save on your insurance plans? Can you commit to painting your nails or washing your dog at home for a few months instead of heading to the salon and groomer? Can you take a break from eating out?
Spread out your spending
Avoid a last-minute shopping frenzy that can lead to overspending. Shopping early allows you to spread your spending out over multiple pay periods, rather than creating a shopping bottleneck by shopping only between Black Friday and the holidays, Bodge says…
While you’re spending, make sure to use payment methods that will give your overall finances a boost. Look for cards where you can earn points or cash back. You can also consider a secured credit card, which can help you build your credit history as you spend and they can help you stay within your budget, as you can only spend the amount of money available in your account…
Use money-saving tools
Woroch recommends creating a list of the gifts you want to buy, and using tools like Karma and Honey which can notify you when an item on your list goes on sale or if the price is dropped. Setting this up allows you to take advantage of deals throughout the holiday season.
Bodge says some of her favorite moves are paying with a credit card that allows you to earn points or miles, and paying with discounted gift cards via sites like GiftCardGranny. She also suggests installing a browser plugin like Shopback to earn cashback on your purchases…
For more tips on saving during the holidays, read the full article here.
A measured, thoughtful approach to holiday spending is always smart. You can spread holiday cheer without going overboard. If you started planning weeks or months ago, good for you! If you are you just realizing the holiday season has snuck up on you, don't panic! Follow these tips and make the most of the time you have. Happy Holidays!