At this time of year the topic of getting through the holidays without financial stress invariably comes up. In a recent BMO holiday spending survey, over half (54%) said thinking about holiday spending causes financial anxiety.
After enduring several years of relatively high inflation and interest rates, 79% plan to cut back on spending during the holiday season. On average, survey respondents plan to spend $519 on holiday gifts and $1,991 when you include holiday travel, entertainment, and other expenses, though 21% are not confident they will pay off their holiday bills on time.
Here are 4 tips to help you avoid the post-holiday hangover:
1. Don’t deck the halls with debt
Set a realistic spending goal, make a list (🎵check it twice!🎵), and stick with it. Spend according to what you can afford, not what you think will (momentarily) impress your kids or others.
2. Plan ahead… WAAAAY ahead
Set aside money every month leading up to this high-spending season. Start in January for next December!
If you’re starting from scratch, don’t just throw everything on a credit card and hope for the best. See #1.
3. Get creative and channel your inner workshop elf
Money doesn’t grow on Christmas trees so stop kidding yourself. Rather than spending more, put time, thought, and effort into your gifts.
- make a photo book with your kids for their grandparents
- build or knit a custom, personalized gift that will be treasured
- offer services, like babysitting or cooking your specialty dish for your favourite foodie
4. Have “The Talk”
No, not that one… the other one that people find even more uncomfortable.
Money can be the elephant in the room, not just in marriages and partnerships but among family members. Don’t be afraid to bring up the subject of holiday spending; be honest and don’t pretend it’s all good.
Let your family know you are trying not to spend money you don’t have, or that you have other important financial priorities. Suggest a gift exchange – everyone draws one name instead of trying to buy for all. You’re probably not the only one who will be relieved!
Join the Conversation:
Share your ideas of how to enjoy the holidays without financial stress!
This post first appeared in 2012. It has been updated with current data and/or information and republished.
