The holiday season has begun. No doubt you’ve started buying things for family and friends. Before you overspend, take a moment to consider these seven creative ways to keep your holiday budget on track.
1. Base your holiday spending on your finances, not wants of others.
Never allow the wants of people on your gift list to drive your spending. Doing so is a sure path to financial trouble. Your teenager might love a brand new mobile phone or the latest headphones, but your budget might not have room for that kind of indulgence. If you’re having a tight year, you should not feel guilty about cutting back your gift list and choosing less expensive and more practical presents.
Consider having age-appropriate discussions with your kids to set expectations and understanding early. Why not go one better? Get them a Youth Account. These age-appropriate Savings and Checking accounts are free, and come with fun, informative newsletters and websites, plus competitions and prizes. They’ll get to do their own budgeting (and empathize with you!). These accounts help your kids learn about the responsible use of money, like saving for goals—valuable lessons that will last a lifetime.
2. Trim your gift-giving list.
If your shopping list is getting too long, it’s time to do some trimming. Buying a gift for everyone in your circle of friends, colleagues, and acquaintances is not required. Instead, send holiday cards to the people that don’t quite make the gift list. Personalize them with photos of your life and quick notes. Restricting your holiday shopping list to close family members and friends can help you save more money and enjoy the holiday season.
3. Set a per-person budget.
After you have your giving list, create a budget for every person on it. With your list under control, you can work on deciding how much to spend. Be sure to add up your per-person budgets and make sure the total is something you can afford. If so, it is time to start shopping. If not, you may need to do more trimming.
4. The greatest gift is time.
Some things are more valuable than money, and your time and attention are at the top of that list. All the money in the world will not buy another second of time, and that makes the minutes and hours you spend with family and friends far more valuable than any gift. Here are a few ways to give time. Instead of buying yet another baby gift, give the new parents in your life a free night of babysitting. They will appreciate your time and care far more than any other gift you would have bought. Offer to do a bit of home maintenance or auto repair for those who can’t afford to hire someone to do the work. Give a “coupon” for an experience to those you care about, such as visiting a local museum, going on a hike, or taking a class together.
5. Let your creative side shine.
Homemade gifts are unique, creative, and fun to give, so let your crafty side take over this holiday season. No matter what you like to do, you can turn your passion into some incredible presents the people on your holiday gift list are sure to appreciate. If you love baking cookies, get some canning jars, and fill them with your favorite ingredients. Top off the jar with a handwritten recipe and give those ready-made cookie kits to the people on your gift list. Cookies are just one example of the many other great ways to give the gift of creativity. Be creative in other ways too, like holiday budget planning.
6. It’s okay to regift.
Hear us out. Regifting is a smart way to save money, declutter your home, avoid sending unwanted items to landfills, and can make someone’s day brighter. We are by no means suggesting you regift wildly, but with a little forethought, everyone wins. Make sure the item is clean, new, unused, and is something you believe the person would truly enjoy. Wrap your gift so it’s as festive looking as everything else you’re giving friends and family. Finally, consider the original giver. If they expect to see the gift they gave you, or their feelings will be hurt if they discover you’ve regifted, or if regifting could impact a relationship, it’s probably wise not to regift that item. Pro tip, don’t regift within the same circle, word gets around.
7. Prepare for next year now.
Now’s the perfect time to start saving for next year. With a Holiday Club account, small automatic deductions soon add up with healthy interest. When the next holiday season arrives, you’ll have a bundle of cash ready and waiting to cover your holiday budget and gift needs. It’s an awesome feeling!
One final thought.
Most people want to control their holiday spending but get wrapped up in the festivities, and their good intentions get lost. Before you hit the stores or start filling your online cart with presents, setting a plan and creating a realistic budget is essential. It is easy to overspend with all the excitement, but spending too much now could mean months of bills and high credit card charges in the new year. Following these seven creative ways to control your holiday budget can give you peace of mind and help give you a jump-start on a financially fit 2025. Happy holidays from everyone at your Credit Union. May the new year bring you good health, happiness, and prosperity.
P.S. The holidays are full of good cheer but also fraudsters. We will NEVER call or text you for any personal information, username, passwords, or passcodes. If you receive a call or text from any number or person claiming to be an employee of the Credit Union requesting this information, HANG UP AND CALL US DIRECTLY AT 800.877.2345. Have a safe and wonderful holiday season!
This article was developed in partnership with our friends at Balance Pro.
