How to save money on Christmas gifts
Rock around the Christmas tree without racking up the Christmas debt
Photo: Unsplash
I just heard on the radio that during the Christmas holidays people usually spend more on presents, food and booze then they do on rent. This year, the average American will spend $1,047.83 on gifts and related expenses, and Canadians will spend $1,367. So where are we all getting this extra money? Remember you are under no obligation to spend a fortune, just try to spend ONLY what you are comfortable with.
How can you budget for Christmas presents so that you don’t overspend now, and then freak out in January when you see your credit card bill? According to CNBC , 24 percent of millennial shoppers still haven't paid off their credit card debt from last Christmas. Really? This really concerns me.
Here are the top 3 things you can do to avoid overspending during the holidays :
1 – Have a Christmas gift holiday budget
A budget will help you to stay on track. When it comes to calculating your budget, don’t only focus on the gifts but also don’t forget about other holiday expenses such as foods, greeting cards, travel and decorating expenses, so don’t forget to add these expenses to your holiday budget.
How to get ahead of this? In January, consider starting a holiday budget, by putting aside money each month throughout the year, you won’t be stressed about spending as you kickoff your holiday spending in November/December. How much should you save? Take a look at your Christmas bills from the previous year, then divide the sum by 12, this is how much you will need to put aside each month to over the next year.
2- Don’t be ashamed to Re-gift
During the course of a year I’ve received gifts from friends and/or colleagues and unfortunately I may not like them, so I save these items (in my spare bedroom closet) and then when the holidays come around, I re-gift. Yes, you read right, I re-gift. I am not ashamed of this, because over the years I have been able to use these gifts to bring joy to its new recipient – and as the saying goes, one man’s trash is another man’s treasure. Over the past few years, re-gifting has become socially acceptable, in fact, 75% of Americas believe that re-gifting is ok and 42% of people admit to regifting from last year! Regifting saves me money, clears space in my home and is better for the environment.
3- Use cash for all gifts
Nothing puts the “Bah! Humbug!” into Christmas like overspending. It’s easy to use a credit card on Christmas gifts and expenses, but this year, consider only using cash for your Christmas gifts. This way you don’t have the Ghost of Christmas-Spending Past come to haunt you in January.
Happy saving and happy shopping!