The holiday season is fast approaching and many Canadians have already started buying gifts for family, friends and colleagues. Whether you had a strong year financially or struggled during the pandemic, it’s not uncommon to want to minimize expenses over the holiday season. After all, if your spending is left unchecked, your January credit card bill can be pretty horrifying. Fortunately, you can avoid post-holiday regret (and debt) with a few simple tips.
Here’s how to create a budget and stick to it this holiday season.
Set spending limits
Start by making a list of everyone you want to buy gifts for including family members, friends, your kids’ teachers, and that coworker you drew for Secret Santa—try not to miss anyone, however small the gift may be. Next, set a spending limit for each person and add up the total. You may want to add a buffer in case you go over slightly on a special gift. And if you expect to buy new holiday decor or host a festive gathering? Factor in those costs as well.
If the grand total this list creates is beyond your means, it’s time to look at ways to reduce your shopping list. This might mean spending less on each individual or buying gifts for fewer people. Remember, the gifts you buy should reflect your budget, not other people’s budgets or expectations. People often appreciate the sentiment more than the gift itself, so focus on buying for those closest to you and feel free to go with a heartfelt token for anyone else on your list.
Do your research—and plan ahead
Before you hit the mall (or your local shopping district or favourite e-commerce sites), make a note about what you’d like to buy each person on your list. Armed with these ideas, you can shop around for sales. It’s also wise to consider price matching if you’re shopping for items like electronics.
Be sure to do this as early as possible to avoid buying expensive last minute gifts or paying rush shipping fees because you left things to the last minute. When it comes to holiday shopping, the early bird really does get the worm—be prepared and you’ll be paid back in savings.
Get creative
Homemade gifts are a somewhat controversial topic because on one hand, no one really wants a macaroni ornament or well-intended DIY project gone wrong. It’s important to know your creative strengths and weaknesses—essentially, don’t start crafting on Christmas Eve if it’s never been your strong suit.
That said, everyone has a creative side and there are great opportunities to use your skills to make awesome gifts. Consider giving loved ones a box of homemade cookies and peppermint bark, or a homemade sugar scrub in a festive winter scent. If you’re an excellent cook, consider gifting a voucher for a homemade dinner at your place on a date of their choosing. If your friends love to read and you’re willing to get a little crafty, a homemade bookmark is a practical and considerate gift.
You can also buy several items in bulk in order to create fun, personalized gift packages without breaking the bank. Think chocolate and candies, bath bombs, hot chocolate packets, hand cream and lip balms, spa-like face masks and more. Your local big box store or bulk shop may inspire your choices. And, if you tend to buy a lot of wine over the holidays, either for hosting or giving as gifts, consider buying a case from a local winery. You often save money when you buy a case instead of individual bottles (and, you might even be able to keep one for yourself).
Budget for events as well as gifts
Once you’ve mapped out your holiday gift shopping list and set a budget, you may feel like you’re prepared for the season—but wait. Be sure to have a line in your budget for holiday events. If you grab drinks with work friends, meet your book club for dinner and go out with friends on New Year’s Eve, that January credit card bill will start creeping up in no time—even more so if you end up dry cleaning a suit or buying a new dress. Budget for events as well as gifts to stay on top of your spending and truly enjoy the holidays—no debt and regret allowed.