Smart Holiday Shopping: How to Celebrate Without Breaking the Bank
As the holiday season approaches, it’s easy to get swept up in the excitement of gift-giving and celebrations. However, it’s all too common that the winter festivities can lead to overspending and post-holiday regret. The good news is, with a little strategic planning, you can celebrate the season without stretching your budget too thin. Here are a few of our favorite tips to help you stay on track and manage your holiday shopping:
Create A Budget and Stick to It
Before you make any purchases, the most important step is to create a holiday spending budget. This budget should include everything from gifts and decorations to food and travel expenses. You should be realistic about how much you can afford to spend without compromising your other financial goals, such as saving for an emergency fund or paying down a loan.
If you need help managing your holiday finances, Education Credit Union offers FREE financial coaching for members and non-members. You can schedule a consultation with one of our certified coaches to get help crafting a budget or repairing your credit in preparation for the next season – just don’t ask them to pick out gifts for your friends and family!
Make a Mindful Gift List
After establishing your overall budget, try to make a list of people you plan to give gifts to. You may want to prioritize family and close friends, because while it’s easy to feel obligated to buy gifts for everyone in your life, it isn’t always feasible.
In addition, it’s worth noting that gifts don’t have to be material items. You could always consider thoughtful, lower-cost alternatives like handmade gifts, baked goods, or personalized cards for extended family, co-workers, or neighbors. You could even plan a special day with your loved ones, or make a photo album filled with memories together. If your list feels too long or your budget too tight, focus on thoughtful gestures that don’t come with a hefty price tag.
Start Early and Shop Strategically
One of the best ways to avoid last-minute panic buying is to start your holiday shopping early. By spreading your purchases over several weeks, or even months, you can take advantage of sales and avoid high shipping costs without the pressure of a looming deadline.
It’s also a good idea to compare prices before making a purchase. Many stores offer price-matching, and you can often find discounts or special promotions online. Be sure to set some time aside to surf the web and find the deals that work best for you.
Avoid Relying on Credit Cards
While it can be tempting to lean on credit cards for expensive purchases, especially during the holidays, this can sometimes lead to a cycle of debt that’s difficult to get out of. Interest charges can add up, and turn a few purchases into months of repayments. If possible, use cash or a debit card for your shopping to avoid the possibility of overspending.
That being said, if you do use a credit card, aim to pay off that balance in its entirety when the bill comes due. Many credit cards also offer rewards for holiday shopping, so be sure to keep your eye out those that offer cashback or points toward a future purchase.
Set Yourself Up for Next Year
If the holidays tend to sneak up on you each year, consider creating a fund for next year’s expenses. If you set aside a small amount of money each month, you will have a nice sum dedicated to holiday shopping by the time next December rolls around. For instance, if you expect to spend around $600 on gifts, you can set aside $50 per month, and have your full budget ready to go by the end of the year.
Also, it’s worth keeping in mind that many stores offer steep discounts after the holidays. If there are certain items you think would make nice gifts the next year, consider waiting until after the holidays to buy them at a fraction of the price. This could also apply to holiday decorations and wrapping supplies, which are often significantly discounted in early January.
Holiday shopping doesn’t – and shouldn’t – have to be stressful or lead to financial strain. By planning ahead, sticking to a budget and shopping mindfully, you can enjoy the festivities without the financial hangover. Remember, the true spirit of the holidays lies in spending time with loved ones, not in how much you spend. We hope you can Learn More and Live More this season.
Blog written by Claire Meyer
