How to Budget for the Holidays

Here it comes again, it’s the most wonderful expensive time of the year!

In order to prevent the Holiday spending hangover, it just takes some planning ahead. And yes, maybe some paring down of all those unnecessary expectations. Having a budget doesn’t mean your holiday season will be boring and horrible. Creating a budget simply means having a plan.

To start, create a budget that you can afford. This will require you to take a look at your income and what you have put aside for holiday shopping already. Knowing what amount you can afford in a budget can help you contain the costs of the holidays. The amount you should spend will be based on what you make, what you’ve saved, and what you can move around in your budget to get the job done.

Gifts obviously make up the biggest portion of your holiday budget, so let’s get that out of the way first.

1. Start by making a list of all the people you need to buy gifts for. Write the amount you’d like to spend on each of them next to their name, keeping your total budget in mind.

2. Add it up so you get a gift expense total.

3. Subtract that gift expense amount from your full holiday budget.

4. If you know you’ll need money to buy baking supplies and ingredients to bring a dish to your holiday dinner, subtract that as well.

5. If you have room left, break down the remainder of your budget into the other expense categories that apply to your life.

Once you have made your budget, you should also set boundaries and be firm with them. Boundaries include setting expectations with your children by letting them know that there is a certain amount you will be spending. Giving essential gifts such as socks, clothing and other essentials is a sure way that the recipient will use them. You can teach your kids to appreciate essential gifts when they have to spend their own money when it comes to gifting rather than the parents.

There are also other ways to avoid overspending such as creating your holiday shopping list and sticking to it. Another way to save is to cut out those stocking stuffers. Although they are items that are less expensive, they can add up very quickly. Once you have made your budget, you should also set boundaries and be firm with them. Boundaries include setting expectations with your children by letting them know that there is a certain amount you will be spending. Giving essential gifts such as socks, clothing and other essentials is a sure way that the recipient will use them. You can teach your kids to appreciate essential gifts when they have to spend their own money when it comes to gifting rather than the parents.

Common Holiday expenses include:

• Gifts

• Stocking stuffers

• Cards

• Festive outfits

• Gift wrap supplies

• Food

• Decorations