The Holiday Countdown is On! How to Budget for Gifts and More

The holiday season can be the most wonderful time of the year, but it can also be one of the most stressful, especially if your budget is stretched by extra expenses. 

​According to the MarketWatch Guides 2024 Holiday Survey, the average shopper expects to spend $1,159 on holiday expenses, including $813 on gifts alone. Another survey found that 40% of holiday shoppers feel pressure to spend more money on holiday gifts than they're comfortable with.

Here's the truth: No celebration is worth sacrificing your financial health and well-being. However, with a little planning and preparation, you can enter this season with less stress and more joy!

Check out these tips to prep your budget for holiday spending:

1. ​​Get a Clear Picture of Your Holiday Budget
   Start by listing all your holiday expenses, including gifts, food, travel, and decorations. Then look at your current budget and decide how much you can comfortably spend. Reviewing last year's holiday purchases can also give you an idea of what to expect for this year's spending.
2. Set Expectations Early
   As you review your budget, you may realize you need to scale back in some areas to avoid dipping into your emergency savings or creating excess debt. Whether you decide to skip a gift exchange, stay home for the holidays or host a smaller gathering, the key is to set boundaries and expectations with family and friends ahead of time. Chances are, people are experiencing similar financial pressures and will appreciate your honesty.
3. Use Credit Cards with Care
   Using a credit card for holiday shopping can have its perks—but only if used responsibly. If you think you'll carry a balance, look for a low-rate credit card to help you save on interest. If you pay off your balance each month and use a credit card for everyday purchases, a cash-back rewards credit card can help offset some of your holiday spending. No matter what, avoid signing up for a retailer's credit card this holiday season. These cards often come with enticing short-term promotions and higher interest rates that can lead to impulsive purchases and unnecessary debt.
   
4. Track Every Expense
   In the flurry of the holiday shopping season, it can be easy to lose sight of what you're really spending. That's why we recommend tracking every expense, especially those small, last-minute purchases that tend to add up quickly.
   As a Wright-Patt Credit Union® (WPCU®) member, you can use Money Management through Mobile and Online Banking, to track all your financial accounts in one place. Money Management even auto-categorizes your transactions so you can see exactly where your money is going and avoid any post-holiday surprises.

Less Holiday Pressure. More Financial Peace of Mind!

Remember, the holidays are supposed to be joyful, not stressful. If you're feeling pressure to spend more than you can afford, take a step back and focus on what really matters—spending quality time with loved ones and creating memories together. Prioritizing your own financial peace of mind is one of the greatest gifts you can give yourself this holiday season—and all year round!

Looking for more helpful money management and budgeting tips? We're with you! Check out WPCU's Education Center for Financial Flexibility and Freedom® tools, worksheets, interactive learning modules, videos and much more.