Budgeting for the Holidays

Written by David Dixon – 12/12/22

The holidays can be a trying time for families when it comes to expenses. That is why budgeting is important and can lead to less stress when the holidays roll around.

It is important to start planning early. Making a budget plan and sticking to it will achieve success.

Start by creating spending categories such as:

• Gifts
• Holiday travel
• Food and entertainment
• Holiday decor and attire
• Charitable contributions

Determine how much you will spend in each category and revisit each year to see how close you come to the plan.

Here are some tips to help you stay on track:

1. Write down everyone you plan to purchase gifts for, then put a dollar figure next to each name. It’s important to set limits which will help to keep your holiday budget in check.
2. Be sure to review your account statements to stay on top of your spending habits. It’s important to pay bills timely, avoiding unnecessary fees as well as using online banking to easily monitor your accounts.
3. If you are using a credit card to make purchases, use a card that offers cash back or other rewards. Most likely you will be spending the money anyway, so look to get something in return like cash back, discounts, or travel deals.
4. Check prices from various retailers to find the best value.
5. Make gifts yourself.
6. Start a savings plan for expensive gifts. It’s important to start early for gifts that are expensive.

“Never worry about the size of your Christmas tree. In the eyes of children, they are all 30 feet tall.” – Larry Wilde

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