Is It Possible To Avoid Overspending During the Holidays?

Holiday spending statistics show the average American consumer spends about $1,000 on holiday-related purchases. As a country, that adds up to nearly $1 trillion spent on holiday goods annually. So where do people find the money for these purchases? For many, the answer lies in a good plan.

The bottom line is that you can absolutely avoid overspending during the holidays. You just need a strategy to do so.

6 Budgeting Tips for a Stress-Free Holiday

A good budget can help you get through many financial challenges. Here are some holiday savings tips for setting one before making your holiday purchases.

1. Create a Comprehensive Expense List: Start your holiday budget by categorizing expenses, including travel, gifts, holiday meals, party budgets, and any other holiday-related costs. Break down specific purchases, like hotel or food expenses, to gain an overview of your spending. This helps in allocating budgets for each category effectively.
   
   
2. Set and Stick to Your Holiday Budget: Determine a comfortable overall holiday budget based on your financial circumstances. Allocate percentages to different categories, such as gifts, meals, and travel, ensuring your total budget covers all intended purchases. Assess opportunities for saving money if your budget appears insufficient.
   
   
3. Early Holiday Shopping for Budget Benefits: Kickstart your holiday shopping early to capitalize on better deals. Early shoppers have the advantage of time, avoiding rushed purchases and spreading expenses across paychecks, making it more manageable for your monthly budget.
   
   
4. Opt for Cost-Effective Handmade Gifts: Consider homemade gifts to reduce holiday spending. Whether baking, crafting, or offering services, handmade gifts show thoughtfulness. Alternatively, explore budget-friendly options at thrift shops or take advantage of holiday sales to spread cheer without straining your financial goals.
   
   
5. Use Cash or Debit Cards to Control Spending: Minimize reliance on credit cards to stay within your holiday budget. Opt for cash or debit cards for a more straightforward approach to expense management. Leverage personal convenience services from banks (like our Money Management tool in Online Banking) to track spending efficiently and make the most of your holiday budget.
   
   
6. Maintain a Detailed Spending Record: Record holiday expenses as you shop to track your budget for each category. This proactive approach allows you to assess your spending and take corrective action if you’re veering off course, ensuring a more controlled and enjoyable holiday season.