The holiday season brings festive parties, family get-togethers and giving of gifts. Exchanging gifts is a wonderful thing to do, but it can also put a strain on your budget. Gift-giving is a major cause of overspending during the holiday season.
Because buying gifts can be expensive, it is important to budget enough savings throughout the year to cover the expense. If you love buying gifts, this article can provide you with some tips that can help you stay within your budget.
Tips to Keep Your Holiday Spending in Check
Before you begin holiday spending, ask yourself a few simple questions.
Can I afford to buy it?
Does the person you’re giving the gift to want it?
Is there a better and cheaper alternative?
Set a Budget
An oversight that many holiday shoppers make is to not set up a budget for holiday purchases. Not setting up a budget can result in over-spending and perhaps lead to maxing out credit cards on holiday purchases. Instead of spending money blindly make a list of holiday expenditures for decorations, parties, and gifts. Plan your budget, assign a specific amount of money to spend on gifts, decorations, and food and stick to that budget.
Be Creative
Another great tip to keep your budget in check this holiday season is to make homemade gifts. Bake cookies or cakes, or use a creative skill that you have to make something that your loved one will truly cherish. Small, thoughtful gifts can leave a deeper impression on the receiver than giving them something purchased at the store. Being creative with your gifts can not only help you save money but can also show affection and care for the person you’re making the gift for.
Plan for the Next Holiday
Planning ahead for the next holiday season is one of the best ways to avoid overspending. Saving extra cash each month will help you have the funds in place for your holiday budget. Explore our handy financial calculators to help you plan for the next holiday season.
