By Despite rising prices and tightened budgets, holiday spending remains as robust as ever. The average shopper plans to spend more than $1,000 on gifts this year, not to mention the additional costs of travel, hosting, and special events.
During a recent interview with a local television station, I shared some practical tips for managing holiday expenses. Here’s a deeper dive into those ideas to help you make the most of your money this season.
Start with a budget
Budgeting might seem daunting, but it’s a game-changer. Reflect on last year’s spending to establish a baseline, then follow Santa’s lead — make a list. Write down everyone you need gifts for, from family and friends to coworkers and party exchanges, and assign a spending range for each. While individual purchases may vary, this approach will give you a clear picture of your overall gift budget.
Leverage holiday sales
While Black Friday and Cyber Monday grab the headlines, many retailers offer flash sales, price matches, and other discounts throughout the season. Start early by adding potential gifts to your online shopping carts, allowing you to track price drops and snag the best deals when they appear.
Automate your savings
Automated savings are a smart financial habit year-round, but they’re particularly useful for holiday planning. Consider setting up a dedicated savings account for holiday expenses. This strategy helps you spread out the cost and avoid overspending when the season arrives.
Maximize rewards for travel
If your holiday plans involve travel, consider using credit card rewards to offset costs. Many cards offer cash back or travel points that can reduce the expense of flights, hotels, or even gifts. By strategically redeeming your rewards, you can ease the financial burden of the season.
Get creative with DIY gifts
Homemade gifts can be more meaningful than store-bought ones. Craft a personalized photo album, a collection of family recipes, or a custom piece of art. If you’re not into crafting, offer thoughtful gestures like free babysitting, help with household chores, or a home-cooked meal. These gifts create lasting memories and show your loved ones how much you care.
No matter how you choose to stretch your dollar this holiday season, the most important thing is to cherish the time spent with loved ones. Wishing you a Merry Christmas and a Happy New Year!
Article by Dillon Harper, Wealth Advisor at Family Financial Partners — a financial services firm in Lexington, Kentucky.