American holiday spending is expected to reach $1,530 on gifts, travel, and entertainment, according to PWC, which is a 7 percent increase from 2022. About 40 percent of people plan to spend more than they did last year.
With prices rising for almost everything, the holiday season can be stressful both emotionally and financially. Budgeting can be tough, especially if your friends and family don’t share the same approach to spending.
If you love the holidays but want to enjoy them without breaking the bank, here are seven tips to help you stay financially stable during this festive season:
**Plan Your Holiday Spending**
Before you start shopping, set a firm budget based on what you can afford. Make sure your shopping money doesn’t interfere with paying your essential bills like rent.
**Make and Stick to a List**
The excitement of the holidays can make it easy to overspend. Make a list of the people you need to buy for and set a spending limit for each. This way, you can spread out your spending throughout the season.
**Look for Early Sales**
Many stores offer sales outside of major events like Black Friday or Cyber Monday. Shopping during these early sales can save you money and help you avoid the last-minute holiday rush.
**Shop Smart for the Best Deals**
Take advantage of sales, discounts, and promotions. Plan your shopping around these events and use online tools to compare prices to get the best deals.
**Think Beyond Traditional Gifts**
You don’t have to spend a lot to make the holidays special. Homemade gifts, experiences, and charitable donations can be just as meaningful. Spending time with loved ones, especially those who live far away, can be the most valuable gift of all.
**Create Your Own Decorations and Wrapping**
Store-bought wrapping paper can be expensive, with Americans spending around $3.2 billion on it each year. Get creative and make your own decorations and wrapping paper. It’s a fun activity that can also save you money.
**Recycle and Reuse**
Buying cheaper items often leads to more waste and higher costs in the long run. Opt for gifts with less packaging, and choose items that can be reused or recycled to be more eco-friendly.
**Final Thoughts**
Setting financial boundaries during the holiday season helps you enjoy the festivities without straining your finances. This approach also promotes a better relationship with money, prevents overspending, and reduces financial stress. Managing your holiday spending wisely can help you avoid debt and impulsive purchases, leading to a healthier financial lifestyle.