With the holiday season around the corner, keeping your savings intact can be a challenge. Not only can it bring a lot of stress, but it can also complicate things financially. This year, Americans expect to spend over a one thousand dollars on gifts this holiday season (Statista). According to Yahoo Finance, 2024 holiday spending in the U.S. will grow by 2.5 to 3.5 percent over the 2023 season, reaching between $980 billion and $990 billion.
And we get it—who doesn’t want to enjoy the holidays? Between Black Friday and New Year’s Eve, budgeting can seem impossible. That’s why we’ve come up with a short list of ideas to help you tackle the holidays while keeping your savings goals on track, avoiding the repetitive New Year’s resolutions forgotten by March.
1. Gift Experiences Rather Than Material Things
Whether it’s something as simple as going apple picking or camping for a day in a nearby national park, gifting experiences tends to be cheaper. You can organize it for many family members or friends at a time and split the cost among all of you. Plus, psychology has proven that experiences create unique, memorable moments and strengthen bonds with loved ones.
2. Plan Your Shopping Ahead
Although the Black Friday frenzy has decreased with the rise of online shopping, we’re still exposed to countless sites and tempting deals. Instead of letting seemingly one-in-a-lifetime opportunities dictate your spending, plan ahead. Budgeting might sound cliché, but it’s key to managing your finances effectively.
3. Explore Local Gems
Instead of spending a fortune on far-flung destinations, take the opportunity to discover hidden gems in your local area. Local travel can be surprisingly rewarding and budget-friendly. Visit nearby attractions, parks, or historical sites that you’ve never explored before. Not only does this save money on travel expenses, but it also supports local businesses and reduces your carbon footprint. Plus, you might find that some of the best experiences are right in your own backyard.
4. Do It Yourself (DIY) Gifts with a Personal Touch
Handmade gifts can be more meaningful and cost-effective. Instead of buying generic presents, consider creating something unique. Whether it’s baking a batch of cookies, crafting personalized decorations, or putting together a photo album, DIY gifts show thoughtfulness and effort. Not only do they save money, but they also offer a personal touch that store-bought items often lack. Websites like Pinterest and YouTube are great resources for DIY gift ideas and tutorials.
5. Set Realistic Spending Limits
Agreeing on spending limits with family and friends can help everyone stay within budget and reduce the pressure to overspend. Instead of vague agreements, set specific amounts for each gift or total holiday spending. This approach ensures that everyone is on the same page and can plan accordingly. Additionally, consider using budgeting apps to track your spending and stay on target. This not only helps manage holiday expenses but also promotes financial discipline throughout the year.
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