How to Save Money for Christmas

You love your family, and Christmas is only once a year…But are you Christmas shopping with a grimace?

We all understand the deeper meanings of Christmas, but we just can’t avoid the social expectations to treat our friends and families to beautiful gifts. And gift-giving, for all the good-naturedness that it should be, can be very costly and very stressful for families. So how can you have a financially responsible Christmas? Here are a few tips.

First, DO NOT buy into store-sponsored credit cards or participate in layaway financing. These kinds of programs are just wolves dressed in sheep’s clothing. Many businesses take advantage of people’s love during the holidays by concealing long-term, high interest payments; extra fees; or special terms and conditions that will end up costing you more in the long run.

Nothing in this world is free. A good rule of thumb when considering financial alternatives is “How will [insert business here] make profit based on this program?” If you are in a dire situation, make sure you read all the terms and conditions for whatever you sign up for. Set aside money in your budget to make those payments, and keep meticulous track of what you paid for and when.

A better alternative? Look for gifts that you can buy in cash or with direct funds from your debit card. A sincere, well-thought-through gift does not have to break the bank.

Second, make a plan before you buy.

Look at the money in your bank account. How much do you expect to spend on Christmas? How much will you spend per person in your family? How much will you spend on decor, food, or parties? Don’t listen to that voice that says that considering money during the holidays will make you a Scrooge. On the contrary, you will find you are empowered to spend! When you have a plan, you won’t be surprised (or indebted) by crazy Christmas bills at the end of the season. Try to stay in budget, and find gifts that will be meaningful--not costly.

Third, start saving for next year’s Christmas today.

Avoid the Christmas Crunch next year by setting aside money in your budget now for next year! It will be a lot easier to save up for this big event if you do a tiny savings each month. No, I’m not crazy. Saving a set amount for Christmas money each paycheck (even just $10!), will give you the opportunity to be even more generous next year. You will shop with peace of mind, knowing for sure that you have enough to cover the costs.

Did you already get caught up in payment plans or overspending? Would you like help deciding how much you can layaway for Santa next year? Contact me for a free budget consultation. Or, sign up for some financial coaching through my services page. With a monthly subscription, you can get just the right amount of support for your unique situation. I am happy to help you make 2023 a debt-free and abundant year.

Have a very merry Christmas with your loved ones.

Kate Platt is a freelance writer. Check her out at www.plattliterature.com