How To Plan Your Christmas On A Budget

The average amount spent on Christmas presents in the US will rise by $72 from 2020 to $548 in 2021. That's before the price of the turkey, the decorations, the booze (spending on this increases 38%! ), and the painkillers for the following day.

It was estimated that consumers will spend $740 more in December than they will in subsequent months. Accordingly, the typical Christmas expenditure represents a 29% increase above monthly spending.

So how do you celebrate Christmas in 2021 on a tight budget? It's not necessary to have a tight Christmas budget in order to enjoy the holidays without falling into your overdraft, but planning your finances does help.

Create a budget

All year long, establish and adhere to a budget. You might be shocked to see how much money you spend annually on entertainment or eating out. You might be able to increase the amount you have for Christmas by keeping track of your spending and managing your money. Include your kids in the process so they may learn how important it is to manage your money wisely.

Inform your loved ones about your financial plans

Tell your family that you are doing your best to stay inside your budget (especially if you will be significantly cutting down on your gift spending). Sharing your financial plans with loved ones can make them more sympathetic to your desire to maintain a debt-free Christmas.

Decide on a monetary cap per gift

Limit yourself to what you can afford.

Choose to purchase just one gift per individual

Whatever restrictions you choose, abide by them.

Say no

You may need to say "no" occasionally if there are too many events and gift exchanges. Maybe you have family or friends who are also attempting to stay within their means; decide whether you will cut back on your spending or refrain from exchanging gifts this year. By declining some invitations, you could help your children have a less stressful Christmas.

Group Presents

By pooling your resources, you might be able to purchase better presents.

Clean out the house and start saving for Christmas presents.

It's possible that you have stuff lying around your home that you could sell at a garage sale, through a consignment shop, or online.

Secret Santa

To reduce the number of gifts you need to buy, choose names from a hat rather than buying one for each member of the family. Who-has-who can be kept a mystery for some enjoyable suspense.

All year long, go gift shopping for Christmas

Watch for discounts on products that would make wonderful gifts, and stay away from the Christmas Rush!

Make donations in someone’s name

Instead of giving someone a present, make donations in their honor. Give a card to your friend to let them know you've provided a present in their name rather than wasting money on a gift for someone who would prefer to see that money go to charity.

Repeat gifts

Purchase gifts that have already been cherished. Making the decision to give only used gifts this year as a family is a terrific approach to reducing costs.

Give prepared meals that are frozen

Individually packaged frozen meals might be a pleasant gift for those who don't have much time to cook or who may have limited resources for food. Add directions for cooking and seasonal embellishments to the packaging to fancy them up.

Create your presents

Gifts produced from scratch, such as bread, cookies, jam, jewellery, and crafts, are wonderful.

Buy a book, read it out loud, and record it.

Give your children, nieces, nephews, or grandchildren the book and recording. or concoct a tale. It will be fun for them to hear your voice. This is a fantastic gift suggestion for distant family members.

Whatever way you look at it, Christmas is a costly season. By seeking professional guidance on both your Christmas budget and your recovery plan, you can make sure that you get back on track as soon as possible in January 2022.