Holiday Spending

Holiday Spending

 CWMP

Kalispell, Montana 59901     406-756-3787

The Great Recession caused holiday spending to dwindle, but in recent years the amount of money Americans are spending on gifts for the holidays has only increased. According to the American Research Group, holiday spending in 2014 was $861 per family, up 8% from 2013. 

Set a Spending Limit

Before you can maximize your holiday budget, you need to set a limit on what you can comfortably afford to spend. Try your best not to rely on credit cards, as credit counseling agencies see a 25% increase.

Shop with a List

Instead of aimlessly wandering malls and shops, figure out what you're going to purchase before leaving your house. This way, you're not tempted to overspend or buy things you don't need. We've all thrown in an item or two (or ten) for ourselves when holiday shopping, but this is unfortunately the easiest way to go over budget.

Suggest a "Secret Santa"

Most likely, you're not the only one who wants to save a little money this Christmas. If you have a large family or are planning on purchasing gifts for your coworkers, suggest a "Secret Santa" where everyone draws a name and buys a gift for that person. You can set a spending limit of $20 to make sure you don't spend more than necessary.

Bake Treats

Everyone loves homemade goodies, especially teachers and coworkers. Rather than spending hundreds on gifts ($10 gifts for five different teachers and ten different colleagues can add up), spend an afternoon baking bread, cookies, muffins and other holiday treats.

The Bottom Line

It's just too easy to overspend during the holidays. To avoid that hefty credit card bill come January, shop with a purpose, a plan and a fixed budget. Know who you're going to buy for, avoid impulse shopping and shop the sales. The holidays will only wreck your budget if you let them.