It is officially November, which means the Christmas tunes are now being played and the peppermint mochas are being consumed. While it may seem a little too early to start enjoying the sounds and tastes of Christmas, it is not too early to begin saving for the holidays. Last year, Americans spent approximately $789.4 BILLION on Christmas expenses. For some, the joy of the season is overshadowed by the accompanied financial stress. However, there are steps that can be taken to ensure the gift-giving season is not full of worry and guilt.

Create a Budget: Creating a budget for holiday spending allows you to be more intentional in your gift-giving. First, determine a total amount that you would feel comfortable spending during the holiday season. Next, use your desired amount and allocate a percentage of the total toward each person you plan to buy gifts for. For example, Mom: $50, Dad: $50, Brother: $25, Sister: $25. By planning out the amounts ahead of time, you can avoid impulse buying and overspending on certain goods.

Saving Ahead: By saving the money ahead of time, you can be confident that you have the money to buy your gifts. Take the amount of money you plan to spend and divide it by how many days, weeks, or months there are until shopping season. Then, you will find the amount necessary to save in the specified period to meet your target goal. Knowing you have the money to spend on your gifts allows you to enjoy the Christmas shopping experience.

Pay Attention to Sales: During the holidays many stores offer sales, discounts, and coupons. Shopping on Black Friday and Cyber Monday can help you save. Utilizing these deals lets you get more for your money, thus leaving room in your budget.

Track your Christmas Spending: A budget is only helpful if you stick to it. Tracking how much you spent on every purchase helps you know where you stand. From there, you can determine your next steps and purchases accordingly.

Just like last year and the years prior, Christmas is on December 25^th this year. Unlike other expenses, holiday spending can be more predictable than others. Tackle the holiday expenses with intention by planning. By planning ahead, you can thoroughly enjoy the many joys that come with the Christmas season!

Reference:

Ramsey Solutions. (2021, November 02). How to Make a Christmas Budget. Retrieved from https://www.ramseysolutions.com/budgeting/create-a-christmas-budget