This time of year can put lots of extra strain on your budget, from costumes and candy for Halloween, to a turkey that feeds your extended family for Thanksgiving, to decorations and gifts galore for Christmas, Hanukkah, and Kwanzaa.
Saving during the holidays doesn’t just mean saving on various elements of the celebrations. It also means sticking to more long-term savings goals and avoiding the accumulation of new debt. America Saves has compiled some tips to help you plan for a fun and fulfilling holiday season while not drowning in expenses.
CREATE A HOLIDAY BUDGET
Protect your wallet from impulse buys by developing and sticking to a comprehensive budget for travel, food, entertainment, and gift-giving expenses.
Set your spending limit before you start budgeting. And stick to your limit. That might mean making some compromises. Think through what you need to make your holiday happy and successful.
Reduce your spending. Add up the total of your holiday list, and don’t be shy about reducing it some more. Challenge yourself to spend a little less each year.
Plan for as many expenses as possible. Be as comprehensive as you can as you create your budget. Don’t forget things like holiday tips and year-end giving.
Remember to save. Continue saving over the holidays so you don’t shortchange your retirement, education, small business, or other goals.
Download our Holiday savings and spending plan.
GET CREATIVE WITH THE DECORATIONS
Buying decorations definitely can save you time, but creating your own or re-using decorations has many perks. It’s an excellent way to spend time together as a family. It also allows you to put more personal touches on your decorations and holiday props.
One of our favorites for Thanksgiving is this Thankful wreath from Better Homes & Gardens.
Here's one of 20+ ways to decorate your home with Christmas ornaments or for more DIY Hanukkah decorations, check out this post by Moms & Crafters.
There are endless opportunities to make your decorations reflect the warmth and cheer of your household.
GO BACK TO BASICS FOR HOLIDAY DINNERS
- Keep the menu simple. Dinner can be special without two different meats, four vegetable dishes and three different desserts. If you plan to serve mashed potatoes and gravy, you can skip the macaroni and cheese casserole. If you plan to make candied carrots, no need to serve candied yams also.
- Make a list and stick to it. It’s so easy to go to the grocery store for five items and see chocolate chips, cake mixes and pies on sale that would be a delicious addition to your Thanksgiving table. The power of suggestion is strong, but be stronger and stick to what is on your list so you can stick to your budget.
- Bake instead of buying. It’s much more affordable to buy a frozen turkey that you can thaw and bake rather than going with the fancy catered turkey from specialty food stores. It may take a little extra effort, but the money you save will be worth it.
- Skip the alcohol. If you normally serve wine or other alcoholic beverages on Thanksgiving, consider switching this holiday to other drinks such as tea and sparkling cider.
When it comes to holiday spending, the important thing is to stick to your regular monthly budget, with some necessary additions. We all want holidays to be special, but if you create debt in the process, it will end up being more of a headache than a holiday.
If you’re in search of even more savings tips, check out this Savers Guide to Holiday Shopping.
Spending less is just the first part of a successful financial plan. Put away the money you save during the holidays into a savings account for future expenses, both anticipated and unexpected ones. Those with a savings plan are twice as likely to save successfully. Let America Saves help you reach your savings and debt reduction goals. It all starts when you make a commitment to yourself to save. That’s what our pledge is all about. Learn more about how to save for the future here.
ABOUT THE PERSONAL INVESTMENT ENTERPRISE (PIE) PROGRAM
The Personal Investment Enterprise (PIE) program is a local savings program provided through Community Action Programs of Boulder County and Mile High United Way. The program is designed for low-income families to enroll in financial literacy classes and save through a matched saving account at a rate of 4 to 1. The first step in applying to the program is to attend an orientation meeting with Community Action Programs at Boulder County. They can be reached at 303-441-3998 or at [email protected]. For more information on the PIE program visit https://www.bouldercounty.org/families/community-action-programs/personal-investment-enterprise/ or https://unitedwaydenver.org/personal-investment-enterprise-pie-program/. To see if you qualify, take this survey: https://www.surveymonkey.com/r/PrelimPIE.
