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Give Yourself the Gift of a Debt-Free Christmas
November 25, 2024
The average American spends $1,000 on holiday gifts, food, and decorations. But you don’t have to ring in the New Year as an exhausted and overstretched elf. Here are a few quick tips to help you celebrate responsibly.
Set a Budget and Stick to It
Santa may have to give gifts to the whole world, but you don‘t. Some financial experts recommend spending no more than 1% of your annual income on presents, decorating, and travel. For example, if you earn $50,000 a year, you shouldn’t spend more than $500 on holiday expenses. Free budgeting apps can track your holiday purchases, showing exactly what you’ve spent and how much you have left. And even if you’re spending more than usual, don’t forget to make payments on your existing debts during the holidays.
Get Creative with Your Gift-Giving
Gifts of your time are much more valuable than the latest gadget. A DIY voucher for babysitting or a home-cooked meal can be used when the recipient needs it most. Gifts with a personal touch show them that you took the time to think about what they’d most enjoy.
Find Free Holiday Entertainment
Some of the most festive, memorable activities don’t have a price tag attached. Embrace community events like tree lightings, choir performances, and holiday parades. Get creative with treat-baking, card-making, crafting, or movie marathons. Volunteer for a worthy cause with family and friends to spread holiday cheer.
Shop Smarter
When it’s time to spend, plan your shopping strategy early to catch the best deals. Use rewards on your purchases. Before you buy anything online, do a quick search for coupon and promo codes from sites like RetailMeNot and CouponCabin. Time your purchases to take advantage of Black Friday, Small Business Saturday, and Cyber Monday specials. Sign up for a company’s newsletter to earn subscriber-only discounts. Combining rewards, promo codes, sales, and price match guarantees can help you afford big-ticket items at a fraction of their original price.
Look Ahead
Much of your holiday budget can be based on your decisions earlier in the year. If you feel like your budget is tight this season, start planning ahead to make next year easier. Resolve to set aside funds for next year’s celebrations. Saving just $10-$20 per week will go a long way toward covering your 2025 spending – without straining your holiday spirit.