Avoid Financial Frostbite This Holiday Season

The holiday shopping season is almost here and as inflation continues to increase the price of nearly everything, shoppers are scrambling to figure out how to wrap up holiday magic without breaking the bank. The National Retail Federation found that on average, consumers spend around $997.73 on gifts and holiday items. But many households don’t have the same expendable income this year. However, holiday magic can still be brought to homes on a budget, it just takes careful planning, and the tips below: 

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. It’s best to budget a little under what you think you’re able to afford, because your financial situation could quickly change.

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. Sometimes Black Friday and Cyber Monday deals aren’t always the best price you can get during the year. Do research on specific big ticket gifts to plan when the best time is to purchase them. 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 multiple small items that add up to the same amount can help prioritize your shopping. This can keep you from getting distracted and quickly going over budget by keeping your focus on the exact gift(s) you planned to purchase for them instead of window shopping or browsing the shelves. 

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. You can even DIY the recipe for their favorite cookies or baked goods by putting pre-measured items in a mason jar without baking ingredients on the tag! Not only will you cut expenses on pre-made items, but they’ll have a custom piece or thoughtful present that they can look at (or eat) 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. An extra $100 a paycheck in your savings can make a huge difference when it comes to shopping for gifts.