How To Avoid Overspending This Holiday Season

The countdown to Christmas is on and for many Canadian families, shopping has begun and with it; the pressure of gift giving. Buying gifts for all the people you love and appreciate in your life is a wonderful gesture, but ignoring your holiday spending can hurt your bank account come January when the bills roll in.

Deloitte Canada’s 2022 Holiday Retail Outlook found Canadians plan to trim their holiday spending by 17 per cent compared to last year. With rising prices of everything from gas to groceries and economic uncertainty this year, it’s no wonder families are looking to stretch their dollars further this year.

The holiday season is a joyous time and everyone loves watching the faces of kids and adults ripping open their gifts, but it’s hard to enjoy any of it if you’re worrying about how you will pay for those gifts under the tree. Keep these money saving tips in mind this holiday season for a stress-free, and budget-friendly holiday.

The Early Bird Gets the Deal

Shopping early can pay off in some great savings. Many stores offer big discounts for shoppers who cross off their lists in November. Check your flyers and sign up for store newsletters to make sure you get notified of the deals when they happen.

Create a Budget and Stick to it

Be honest with yourself about how much you can afford to spend this Christmas and set a realistic budget. Don’t forget to include all the extra holiday meals and extras such as gift wrap, decorations and Santa photos in your budget. Those little things can add up quickly and can lead to overspending.

Consider Handmade Gifts

It’s a lovely gesture to want to get gifts for everyone in your life, but if your Christmas budget doesn’t stretch to cover your child’s three preschool teachers and the crossing guard, consider a more economical alternative such as homemade cookies or a DIY ornament made by your child. Remember, it’s the thought that counts, not the dollar amount. Just don’t forget to budget for the supplies!

Set Expectations With Extended Family

The holiday season can bring a lot of pressure especially if you have a large extended family. If you’re trying to cut down on holiday spending, have an honest conversation with family, perhaps suggesting a Secret Santa instead of buying for everyone in the family. Pick names out of a stocking with your family and set a budget for the gift. Everyone’s budgets will be helped, and recipients will likely get a more thoughtful gift too rather than half a dozen trinkets. As everyone is only shopping for one person, they’re likely to put more thought and effort into finding the right gift.

Track Your Holiday Spending

There are lots of free budgeting apps out there, but a simple pen and paper does the trick too. Write down the names of the people you are purchasing for and your budgeted amount then write it down every time you make a purchase. It might be a bit of work, but you’ll be thankful you did it come January.