How to Budget for the Holidays

BY Micaela October 4, 2021

The holidays are a season of giving but remember, the true meaning of the holidays isn’t about gifts, and nobody wants to receive a gift knowing that it’s a financial burden. According to the National Retail Federation, Americans spent $998 on average for holiday gift-giving last year. For the 2021 holiday season, focus on budgeting your spending and being your authentic self with the presents you choose for the special people in your life. Here are some tips that will help plan your holiday budget and make the entire process simpler and more rewarding.

Make a list. 

Remember those days of writing out your wish list for Santa? Do the same for your friends and family. ‘Check it twice’ to make sure you prioritize who needs to be on your list before you hit the stores, browse your favorite shopping apps on your phone, or turn on your computer. Next to each name, write down what you want to buy for that person and how much you want to spend; then, you can get a clear idea of the numbers involved and know in advance how many gifts you need to purchase.

Comparison shop. 

If you can’t shorten your gift list, make your dollars go further by shopping savvy. Use price comparison apps to make sure you’re getting the best deal on each purchase. Think about doing some of your holiday shopping online, where it is easier to compare prices and apply coupon codes to save money. If you think your loved ones won’t mind, shop resale for some of your holiday gifts. At resale shops and online, you can often find clothing, books, CDs, toys, and jewelry in excellent condition for less money than they would cost new. 

Track your spending.

You can do all this on paper or use a spreadsheet or budgeting app to help with the math. Go into the season with your budget all laid out to know exactly how much you can afford to spend for everything on your list. Then, as you shop, refer to your budget often to make sure you’re staying within its limits.

Review your receipts and bills from last year. 

Go online and review your bank, credit card and ‘buy now, pay later’ statements from 2020. This will give you a good idea of the amount you spent on holiday gift-giving last year and the time you took to pay for it all.

Don’t wait until the last minute.

 Start planning your holiday expenditures today. The best time to do this is early on before the holiday season gets into full swing.