5 Tips to Manage Holiday Spending
The gift-giving season can leave you with a financial hangover in the new year if you do not have a spending plan.
If the gift-giving season is more stressful than cheerful for you, don’t panic. Get prepared!
These tips can help you manage your spending this holiday season:
- Make a spending plan. Know how much you can spend on holiday-related expenses by making a budget. Then, decide who you will buy gifts for and the amount you will spend on each person. Make sure to include other holiday-related expenses like greeting cards, gatherings, travel, office parties, holiday groceries, and charitable donations.
- Use cash instead of credit to make purchases. It’s easier to overspend when paying with credit.
- Shop early rather than later. This can help you avoid overspending under pressure or needing to spend extra for expedited shipping.
- Consider cutting back on the number of gifts you buy. Draw names with family and friends or pool your gift budgets and make a charitable donation as a group.
- Choose thoughtful or practical gifts, such as homemade food items, kitchen supplies, or gift certificates to a recipient’s favorite retail outlets.
It’s easy to overspend during the holidays, which can leave you with a financial hangover in the new year. But making a plan now and sticking to it will help you avoid debt next year.
These tips were compiled from North Carolina Cooperative Extension, University of Florida Institute of Food and Agricultural Sciences, Utah State University Extension, and the American Psychological Association. Check out their information for more helpful tips to avoid financial stress in the holiday season.
Are you financially fit? MSU Extension’s Financial Fitness Checklist will help you determine your financial fitness level.
Learn about the Money Traps that Can Keep You Broke in MSU Extension Publication 2432.
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