Across the country, Americans spend a lot during the holidays. The average household budget goes from $890 to well over $1,000 for food, travel, decorations, and gifts, according to the National Retail Federation. Let’s take a look at 5 ways you and your family can enjoy a festive and fun holiday season while still being financially wise.
- Set a Solid Budget: First, estimate how much you want to spend on each person for gifts. Then, approximate how much you’ll spend on travel, decorations, and festive food. Some experts say using cash can help ensure that you don’t go over budget, while others simply urge families to keep receipts and add them up daily. Whatever your approach, stick to it. Every time you make a holiday-related purchase, remove the money from your overall holiday budget. If you have to go over budget, keep it to a minimum to avoid going into unnecessary debt.
- Reduce the Number of Gifts: This is a good way to reduce how much you spend. Sure, if you have kids or young people in your life, you’re more or less required to get them something for the holidays (if that’s your family tradition). But not everyone in your immediate circle is your responsibility. Make a list of whom you’d like to give a gift and then eliminate as many of those as you can. You’ll be shocked at how much money you can save. Plus, most family members would rather receive a holiday card than a small gift that ends up in the regift pile.
- Get Crafty: Want to save some money AND give everyone on your list something meaningful? Make something. Ideas include hand-made holiday cards, personalized gift tags, or something simple like bagging an individual packet of hot cocoa with a handful of marshmallows and a candy cane.
- Don’t Procrastinate/Buy Now: Whether it’s buying plane tickets, booking a hotel, or stopping by the mall, last-minute shopping almost always costs more. Start shopping early, and you’ll have time to wait for sale prices.
- Give Yourself the Gift of Savings: Set aside some of what you planned to spend on the holidays and put it into a savings account. It’ll be a nice way to start the new year.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.