Your Guide to Holiday Budgeting

It's the most wonderful time of the year! While the season's peace, joy, and light often comfort us, make sure you keep your budget in mind during holiday shopping. Truthfully, it's easy to lose track of where your dollars are going in the hustle and bustle of purchasing gifts, baking cookies, and traveling to spend time with family.

Keep yourself safe from overspending this holiday season and enter the New Year without stress with these budgeting tips!

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Table of Contents

1. Make a List
2. Know How to Spot Good Deals
3. Shop Early
4. Don't Feel Like You Have to Do It All
5. Create a Holiday Savings Account

Make a List

Before you begin your holiday shopping:

• List all the expenses you anticipate incurring throughout the season
• Start by listing each category (gifts, groceries, gas, décor, clothing, etc.) and setting a budget for each
• Be sure that the amounts you choose to budget are realistic, easy to stick to, and aligned with your financial situation

Unrealistic budgeting often leads to overspending. Be sure to give yourself some wiggle room within your budget for unexpected expenses or price fluctuations.

Know How to Spot Good Deals

Just because something is on sale doesn't mean it is a good deal. Some stores intentionally mark items up and market them as significantly discounted from the usual cost. This sales tactic is especially prominent on big shopping days such as Black Friday and Cyber Monday.

To avoid this, plan ahead. If you see an item in an ad that seems like a great deal, check the item's typical cost before making your purchase. It can also be beneficial to take the time to compare prices, as some stores may be running better promotions than others, allowing you to get the item for less elsewhere.

Shop Early

The earlier you can begin your shopping, the better. Many sales will disappear as the holidays approach.

Retailers know that last-minute shoppers are often less concerned with the price of an item and will offer fewer discounts during this time. You're also more likely to overspend if you're running on a time crunch, so start shopping early to avoid impulse spending.

Don't Feel Like You Have to Do It All

Are you hosting a big meal this holiday season? Don't do all of the cooking alone.

Instead, have each guest bring an appetizer, side dish, or dessert to contribute. A potluck-style meal will save you money on groceries and allow you to spend less time in the kitchen and more time with your guests.

Create a Holiday Savings Account

The best way to ensure you have the extra money for the holiday season is to set it aside throughout the year. Consider opening a savings account reserved for holiday funds.

Put a set amount away weekly, monthly, or sporadically, and wait to withdraw any funds until it's time to begin holiday shopping. Saving early will simplify the budget-creation process as you'll know exactly how much you must spend.

Embrace the Joy, Not the Stress

By implementing these budgeting strategies, you can enjoy the holiday season to its fullest without financial stress. Remember, it's not about how much you spend but the joy and memories you create.

Happy holidays from all of us at FSB!

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