The holidays can be a joyful season filled with seeing family and friends, supporting charities, or gifting to those we care about. However, it is common for people to overlook the importance of having a smart spending plan for the holiday season. Without a holiday budget, you can overspend and stress about money. To make this holiday season more financially manageable, we’ve compiled tips on how to save for holidays and stay within your budget.
Create a Budget
Budgeting is an important step in managing your finances to reach your goals. We may not always think about it, but having a well-planned budget can significantly aid in preparing for holiday expenses. When you have a specific savings goal in mind, such as a budget for holiday gifts, you’ll want to adjust your daily spending habits to start saving for that goal.
To create a budget, you first need to identify all your income sources and expenses. Knowing where your money comes from and how it is spent each month will allow you to gauge how much you can put into savings at the end of the month. When you start allocating leftover money toward a savings goal, you can make consistent progress in reaching it!
Make the budgeting process easier by checking out the Centris monthly budget calculator. This tool can help you outline your budget, providing a picture of your income, expenses, and the amount you put into savings.
By making a budget for the holidays, you can help avoid last-minute financial stress and keep your overall financial goals on track.
Make Holiday Spending Categories
Once you’ve established a budget and determined how much you can allocate towards your holiday allowance, dividing your savings into spending categories can be helpful. Some useful categories to consider may be:
- Gifts: Create a manageable holiday shopping list for the people you would like to purchase gifts for and keep in mind the amount you can afford to spend on each person.
- Holiday Decor and Supplies: If you enjoy decorating your home for the holidays, consider setting aside a specific budget for decor. Additionally, expenses such as wrapping paper and other gift supplies can fit into this category.
- Food: Hosting dinner parties or gatherings during the holidays? Factor in the cost of food in your budget!
- Travel Expenses: If you plan on traveling to visit family or friends during the holidays, budget for travel expenses such as transportation, gas, food, and accommodations.
- Charitable Donations: The holiday season can be a time of giving, so if you have a charity or cause you want to support, make sure to include it in your budget.
Once you have allocated budgets for each category, it’s important to diligently track your spending. Keep a close eye on the remaining budgets as you purchase items on your list. That way, you will know how much money you have left to spend, helping you stay on track and avoid overspending.
Start Saving Early
Starting your holiday savings early in the year may increase the amount of money available to fulfill your holiday wishes. Regardless of the size of your holiday fund, early saving may help reduce the stress associated with meeting your gift-giving goals.
One effective holiday budgeting tip is to open a dedicated savings account exclusively for your holiday fund. By having a separate account, you can easily monitor your progress toward your savings goal and prevent accidental spending of these funds.
Centris Federal Credit Union has a Club Account for this very purpose! With a Club Account, you choose a specific time within a 12-month timeframe that you would like your funds to become available to you. Until that time arrives, you can contribute as much as you would like to the account knowing that your money is secure from unintentional spending.
By being proactive with your saving, you can be better prepared for your holiday expenses.
Get Creative
Getting creative during the holidays is a fantastic way to save money while still making meaningful gestures. Here are a few ways you can avoid holiday debt with creativity:
- DIY Gifts: Tap into your creative side and consider making homemade gifts for those you are close to. DIY presents have a personal touch and sentimental value, making them cherished keepsakes for the recipients.
- Gift Experiences: Instead of traditional material gifts, try opting for experiences. Treat the recipient to gift cards to their favorite restaurant, a relaxing spa day, or an activity they’ve never tried before. Experiences can create lasting memories and may be more affordable than purchasing multiple gifts for one person.
- Sale and Bargain Hunt: Keep an eye out for sales and bargains, particularly around Black Friday and Cyber Monday. These events offer great opportunities to find good deals on various items, helping you save money on your holiday shopping.
If you’re looking for more options to help you save for the holidays, Centris offers a variety of solutions and has an expert team ready to help! Visit one of our branch locations or check out the Centris Financial Wellness Center to learn more about year-round budgeting and financial topics in under ten minutes.
