We are just a few short weeks away from the beginning of the holiday season. It is a wonderful time to enjoy time with your family and loved ones! Who doesn’t love hot chocolate, cozy movie nights and making memories?!
While this can feel like the most wonderful time of the year, it can also bring a fair share of financial stress if you don’t plan ahead.
But, you have time so let’s work now to get your holiday budget in check so that you can spend this season enjoying your family! And maybe finding a creative spot for that Elf on a Shelf!
Before we jump into the budget, we first need to establish your financial priority for the holidays. Did you know that the word ‘priority’ comes from the Latin word prior, meaning ‘first.’ In the 20th century, the word priority switched to the plural form, but at its root, it means the top or most important.
So let’s find out what is most important to you in relation to your budget this holiday season.
For many of my clients, the goal is to stay on budget for all holiday expenses.
Simply put–no one wants a ‘credit card hangover’ in January! Did you know that nearly one third of Americans who put last year’s holidays on a credit card are still paying it off now?
Have a look at your finances, and see exactly how much you can budget for the holidays this year. To give you a quick reference, the average American family of four plans to spend around $1,000 this holiday season.
So let’s make the decision for your holiday budget, and start filling in the details, so that you can decide what and how to fund this year.
Total Holiday Budget: ___________
- Gifts for Family Members
- Gifts for Coworkers, Friends, Neighbors, etc.
- Holiday Decorations (Tree, lighting, home decor, candles)
- Holiday Meals
- Entertainment
- Any travel expenses
- Charitable Giving
To make this a little easier for you, I have made up a Holiday Budget Worksheet. You can download it here. Simply complete the budget prior to holiday spending.
If you have a spouse, complete this budget with your spouse so that you are both aligned on the financial goal for the year. With a plan in hand, this will help you to know what you should and shouldn’t buy on Black Friday (ohmygoodness–those deals are tempting!!).
Once you have your financial priority established, you can line up all purchasing decisions against your written plan. Although you might feel like you earn enough money to go on a vacation, with the expenses you have this month, it may not be in cards this holiday season. And that’s okay! Your family gets to decide what is most important, then fund it!
