3 Holiday Spending Tips

by COUNTRY Financial

Just about everyone loves the holidays. Cooler weather, dazzling lights, and time with loved ones. But it can also be the most expensive time of the year, and if your budget is already tight, holiday spending can dampen those holiday vibes.

This doesn’t mean you have to cancel Christmas, but you might need to get creative with your holiday budget this year. These financial tips for the holiday season can help keep your holiday budget in line.  

1. Tweak the holiday to-do list 

Start by making a list of all the holiday activities you have planned this year with their estimated costs. That includes buying gifts, hosting or attending events and traveling. If you set aside holiday savings throughout the year, this is the time to see if the numbers align with your plans.

If you did not account for inflation or if you underestimated prices, here’s where you can get creative to trim costs when creating your budget for the holidays:   

• Suggest a gift exchange where you draw names instead of buying gifts for everyone in your extended family. 
• Host a holiday brunch or potluck instead of a cocktail party. 
• Look for family friendly holiday events like tree lightings that can be both festive and free.  
• If attending The Nutcracker is a tradition you can’t give up, consider a matinee show or a performance from a youth dance academy, which can be less expensive. 
• Consider a family road trip to Grandma’s instead of flying this year to save on holiday travel expenses. 

TIP: Use our holiday budgeting worksheet to keep you on track! 

2. Avoid credit cards and "buy now, pay later" apps  

When used wisely, credit cards can provide many benefits like fraud protection, cash back, and points, but it’s easy to get into the habit of swiping and paying later during the holiday sale madness. It’s even easier to spread out payments for items you can’t afford today through "buy now, pay later" apps. But just because it’s easy doesn’t mean it’s financially healthy. Paying with cash during the holidays is one way to keep your holiday budget on track and control impulse buying during the holiday extravaganzas. 

TIP: Download our free, printable debt payoff worksheet to help you pay down debt.  

3. Maintain the 50-30-20 Budget rule 

One of the best ways to ensure you stay on financial track this holiday season is by maintaining the 50-30-20 budget rule. This is a rule you should abide by on a regular basis. It means 50% of your income should go towards your fixed expenses such as mortgage and food, 20% should go towards your savings, including retirement and an emergency fund, and 30% should go towards things you want, including vacations and entertainment. Following this rule will help ensure you’re not overspending in the wrong places or spending what you don’t have. 

TIP: Try our budget calculator to keep you on track throughout the year! 

Updated 11-8-24