Avoid Financial Frostbite This Holiday Season

Inflation has caused the price of nearly everything to increase exponentially this past year, and with the holidays shortly approaching, parents are scrambling to figure out how to be sure kids feel the same magic when they open their presents, with a tighter budget. The National Retail Federation found that in 2021, consumers spent an average of $997.73 on gifts and holiday items, with most parents spending around $276 per child alone. But many households won’t have expendable income for gifts this upcoming holiday season. Using the tips below can ensure you bring the same holiday magic to friends and family, without breaking the bank.

Budget, budget and budget

While this might seem like a simple idea, most of us tend to start with a budget, and up our limits as we inch closer to the holidays. This year, plan to sit down and review your finances and make an exact dollar budget amount for gifts. Then write down a list of those you’ll be buying presents for to divide where you’ll be spending that money. And here’s the hardest part… stick to it! An extra dollar here or there might not seem like it will hurt, but if you spent a little extra on everyone on your list, you’re looking at a much bigger expense than you anticipated.

Shop now

Kids might have changing interests and hobbies, but that doesn’t mean that you can’t shop now for things you know they’ll want or need. Holiday shopping doesn’t only have to start when temperatures drop. Getting a head start can make sure you get all the best deals on everything you want to purchase. And this way, you don’t have to be running to the store on Christmas Eve to get last minute presents.

Big VS Small

Some people may prefer to have many small presents, while others would rather get that one big ticket item they’ve had their eye on. While shopping for gifts, consider what your budget is going towards. One more expensive item that kids or family members have been asking for all year or buying multipole small items that add up to the same amount can help prioritize your shopping.

If you can make it…

You might not be an artist or master crafter, but chances are you can still make something special that a loved one will appreciate. Take up a new hobby this holiday season and create gifts for friends and family! From custom mugs or hydro flask art to teacup candles and DIY welcome signs. Not only will you cut expenses on pre-made items, but they’ll have a custom piece that they can look at and remind them of you whenever the see it or use it!

Put aside a holiday fund

Simple math can help you figure out how much extra money you need to be putting aside to save up enough for presents before you begin your shopping. Put aside a holiday fund –whether it’s a glass jar, a plastic container, piggy bank or even just extra going into savings each month – this can avoid the post-shopping shock you can have after spending hundreds of dollars on everyone you love. 

About the Author

Mary Jo is a proven successful business tactician with over 20+ years of strategic management experience with a diverse background in finance, higher education, technology, client services, business development, and sales/marketing. As an Executive/Owner for BMJ Partners, Inc. through the year’s Mary Jo has provided operations, finance, marketing, consulting and sales services to finance organizations on a national basis. As Vice President of Corporate Development for CampusLogic, Inc., she initiated new corporate partnerships, marketing for existing products/services along with new product and software development. Mary Jo joined Yrefy, LLC in 2017, as a founding member and Managing Partner. Yrefy’s refinances credit cards, auto deficiencies, fin tech loans, personal loans and private education loans, working with customers on a national basis.