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10 Tips to Budget for the Holidays

Americans’ average holiday spending in 2016 was $795.97 per person, with about $590 being spent on gifts for family, friends and co-workers, according to the National Retail Federation.

Other items included $105 for food, $55 for decorations, $27 for greeting cards and postage, and $20 for flowers and potted plants.

Here are 10 tips to help you stay on track with your finances this holiday season:

  1. Establish a spending limit. Start by setting a spending limit, not with a list of gift receivers.
  2. Make a list and check it twice. After you have your total budget, make a list of everything you need to buy. List all of the people you would like to buy gifts for and all other expenses.
  3. Shop around. Comparison shop or shop online to save.
  4. Track your spending. If you don’t keep track, you very likely will overspend.
  5. Avoid using credit. Do your best not to finance your holidays. If you are planning on using credit, make sure not to charge more than you can afford to pay off at the end of the month
  6. Gift exchanges. Draw names and buy for only one person instead of many. This can be a great way to give gifts in large or extended families or at work.
  7. Homemade gifts. Homemade baked goods or crafts can be a wonderful way to give something to everyone on a tight budget and even may mean more to the receiver.
  8. Give the gift of an experience. Instead of gifts, start a new tradition and take a family trip.
  9. Make a large-gathering potluck. If you’re in charge of making the holiday meal this year, ask guests to pitch in and bring a dish.
  10. Avoid impulse shopping. Don’t put yourself in a position to blow your budget. If you order online, take advantage of the free shipping to your home that most retailers offer. That will help you avoid the temptation to buy a few “extra” things when you go to the store to pick up your online order.

 

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