The holidays are quickly approaching. It’s a time to give what you can and receive gifts from others, but in all likelihood, just as many Americans do, you will probably overspend if you have not planned a holiday spending budget. One study found that 56 percent of Americans planned to go in debt over the holidays. So just how much should you spend, and how do you talk to your family about your holiday budget? Some financial planning tips make this conversation much easier.
Let Your Family Know
Do you have big family get-togethers during the holidays? If gift-giving is a family tradition, then it’s time to sit down and talk about how to have a fun, comfortable, and affordable holiday for everyone. Most family members do not have extra money to spend on more gifts, but since no one ever talks about the budget, it’s never discussed.
There is a simple fix. You can start it with a group text or talk to family members about giving something else this year. What about giving time? It’s the best way to express your gratitude and love, and you can give time in so many ways.
Whether it’s volunteering as a family somewhere or doing something to help out a family member together, such as cleaning out Grandma’s garage or another task that only requires your energy and time. You do not have to spend a dime to show your love and care for others in your family.
Switch Up Parties to Potluck Style
What if everyone brought something to dinner this year? The host would simply have to worry about decorations and making sure everyone is comfortable, and the whole family could come together to make or bring decorations beforehand as well. Big celebrations do not have to cost so much if everyone pitches in.
To get everyone on board, you can send around ideas of pot luck style holiday parties and even propose a theme poll to see what people would like to do for the holidays. If it’s tradition to hold the party at someone’s house each year, then make sure there is a group ready to help out and get decorations or other supplies in order.
Promise Not to Overspend
The holidays make it easy to go overboard with spending, but you should never go above your budget. The holidays tend to draw people towards impulse purchases, even if it’s just for themselves. When you’re shopping, only purchase what you can afford.
It is important to keep a reserve of funds in your savings account in case of an unexpected emergency. Should you find yourself facing an unexpected emergency over the holidays, without the savings to cover it,bad credit online loanscan be considered as a short-term solution. However, you should borrow money just for unexpected emergencies and only until you can get your finances back on track.
Try a Secret Santa or White Elephant Party
If you talk to your family about spending less this holiday, perhaps one of the best ways to bring down spending is through a secret Santa or white elephant party. These games focus on each person buying a single gift for someone. You can draw names out of a hat for secret Santa and then keep purchases to a budget for everyone. This way, you only have to buy one gift.
White elephant works a bit like secret Santa, but instead, everyone buys a gift and gives it one person. That person can trade for another gift when it’s their turn. The last person typically gets the best gift. It’s the best way to do gift-giving in the workplace or at school.
Wrapping Up: Holiday Gift Budge Guide
Want to start off the new year with less debt? Then you should start saving now. There are plenty of ways to give to your family or co-workers without spending too much money. If you get everyone board with a thrifty holiday, then you can also focus more of your energy around giving thanks to one another and celebrating the holidays with one another. You don’t have to focus on money to make it special!