It’s the most wonderful time of the year!
And also, the most expensive.
In an effort to spread holiday cheer, it is easy to let spending get out of control. But that credit card bill that hits in January can be quite the holiday buzzkill.
This is your year to do it differently. This year, you will make a plan and remember that the dollars you spend do not reflect how much you care about your loved ones. This year, you will make a budget.
(Laura Gomez/unsplash)
So, let’s get started. Creating a Christmas budget won’t take long, and a premade template makes it even easier. Ideally, budgeting for the holidays starts a year in advance. When you set up your yearly family budget, you’ll create a holiday savings category and set aside a little every month. Budget template printables make this easy because the hard work is complete, and all you need to do is pop in the numbers.
But if you haven’t been squirreling away cash all year, don’t worry. This year, we will work with what you have, and in January, you can set next year’s holiday spending goals and start saving earlier.
The first step is to identify how much you have to spend.
You will then use your budget planner printable PDF to prioritize your spending categories and divide the money among them. For example, if you are working with $1,000 this year, maybe $500 goes to gifts because that is most important to you, and then you will divide the remaining $500 between decor, events, travel, and parties.
Within each category, you will break it down even more. With your $500 gift budget, write out everyone you plan to include on your gift list and estimate what you will spend per person until it adds up to $500. Rinse and repeat until you’ve identified a plan for your cash.
Gifts
Many people prioritize gift-giving in their holiday budget because it is an important part of the Christmas season. It is also an area where things can easily spiral out of control, so it is nice to set a dollar amount so you know your reasonable limits. You may choose to allocate the largest amount of money to your immediate family and then split the rest between extended family, friends, teachers, neighbors, and co-workers.
Ideas to Save
Gifts can become expensive and cumbersome, especially when you have an extensive network of family and friends. You can reign in your spending by coordinating a gift exchange, delivering baked treats instead, or asking people if they want to skip gifts this year. You might be surprised to find your friends or extended family is relieved when you bring this up because they are likely looking for ways to save, too.
Decor
Your decor budget will likely be one of your more flexible categories. If you enjoy adding new decor to your collection each year, just plan for it within your budget. But even simple holiday decor can pack a punch, so if you need to find somewhere in your budget to cut an expense, simplifying this part of your budget may be the easiest.
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Christmas decor accumulates over time, so after a handful of Christmas seasons, you probably have enough to decorate your entire home without purchasing anything new. If you crave something new without having much to spend, consider crafting or DIYing something creative.
Events
Holiday events can be sneaky holiday expenses. There are so many fun things to do around the holidays, and those events can add up fast. Pictures with Santa, holiday train rides, Christmas light events, and ice skating can cost a lot of money when paying for an entire family. Decide how much you can spend on holiday events this year, and prioritize which events are most important to you.
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For every pricey holiday event, there is likely a free alternative for your family. Town Christmas tree lightings, parades, a drive through the neighborhood to look at lights, and community Santa events will allow you to get in the Christmas spirit without breaking the bank. Just because your event budget isn’t huge doesn’t mean you have to skip out on all the fun.
Parties
One of the most meaningful parts of the season is gathering together with the people you love. Hosting a party or even attending one can require some cash. Food, drinks, gifts, and entertainment all help create a magical season. The sky is the limit as long as it is within the budget.
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Remember that the most important thing is that you will all be together. If you want to stretch your budget, think strategically about how you want to spend the money you have. Ask party-goers to contribute by bringing a dish to share. Plan some party games for low-cost entertainment.
Travel
Holiday travel can be stressful and eat up your budget quickly. Families work hard to get together with grandparents and cousins each year, so if this is a priority for you, account for the expense in your budget. The nice thing about holiday travel is that you can plan early and purchase months in advance, taking some pressure off your December spending. Don’t forget to plan for hotels, rental cars, and dining out along the way.
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Buy your tickets early. You know that flights will sell out, so book your seats as soon as you decide to travel. Another option is to plan an alternative time to travel. Spend Christmas morning with your immediate family at home, and plan a second Christmas with extended family when you aren’t paying a premium for travel.
Tips for Successful Budgeting
- Keep track. Document your spending so that you know exactly what is left.
- Keep things flexible. Your budget is more flexible than you might realize. If you find a great deal on a gift, you now have more to spend in a different category. Things can shift and change as you make purchases.
- Keep in mind the reason you celebrate. The amount of money you spend does not determine whether a holiday is successful or not. The joy of family togetherness is enough of a reason to celebrate. You can’t put a price on love.
Spending within your means will allow you to eliminate the stress that comes with paying for everything. When you stick to a budget, you may find creative and thoughtful ways to show people you care.
May your holidays be merry, bright, and within your budget.
