The holiday season is a time to celebrate, relax, and connect with loved ones, but it’s also a time when expenses can add up quickly. From gifts and parties to travel and decorations, the costs of spreading holiday cheer can easily exceed expectations. Creating a holiday budget is a simple way to enjoy the season without the post-holiday financial stress. Here’s a quick guide to help you plan your holiday spending.
Start by deciding how much you’re willing (and able) to spend in total. Look at your monthly budget, savings, and any extra funds you might have. Aim for an amount that feels comfortable but realistic for covering all your holiday expenses.
Pro Tip: Try to stick to cash for holiday purchases, or allocate specific funds on a prepaid card to avoid overspending on credit.
Beyond gifts, consider all the potential costs of the season. Here are some common categories:
Write down each category and estimate an amount for each. Being specific here will help you keep track of spending as you go.
Not all expenses are essential. Rank your list in order of importance to decide where you’d like to focus most of your budget. Maybe gifts are a priority, while new decorations can wait until next year. This will allow you to feel more in control of where your money is going.
Pro Tip: For large families, consider drawing names for a gift exchange instead of buying gifts for everyone, or setting a price limit for each gift.
Set up a way to track each holiday expense as it happens. This could be a simple spreadsheet, a budgeting app, or even notes on your phone. As you purchase gifts, book travel, and buy supplies, log the expense in the appropriate category. Keeping a close eye on your spending lets you adjust as needed, so you don’t end up overspending in one category and feeling stretched in another.
Tip: If using a credit card, set up alerts for each holiday purchase, or set a holiday budget on a prepaid card to limit overspending.
Creating a holiday budget may take a bit of planning, but it allows you to focus on what truly matters: enjoying the season and making memories with loved ones. With a budget in place, you can savour each moment knowing that you’ve set yourself up for a financially stress-free holiday season.
