Budgeting for the holiday season - gifts
Feeling festive is one thing, overspending on gifts during the holiday season is another. According to research commissioned by Equifax December 2016, 10% of shoppers leave it till the last minute to buy gifts for Christmas. This could potentially mean that they end up spending more than if they’d budgeted beforehand.
There are many ways to budget for gifts for the holiday period. Here are some suggestions:
- Make a list
List everyone you want to buy gifts for, and decide how much you can afford to spend on each person.
- Save up
You may want to save up months in advance to ensure that you’ll have enough to spend on gifts when the holiday season rolls around.
- Keep track of your spending
Make sure that you’re sticking to your budget. If not, try to tweak it so that you’re still spending within the same limit overall.
- Compare prices
If you know what you want to get someone, don’t go out and buy it from the first store that you come across. Do your research online first, to see if you can get it cheaper elsewhere.
- Shop in the sales
You may want to shop during the sale season, whether it’s as early as the summer sales, or during Black Friday or Cyber Monday. Don’t buy something just because it’s on sale though – you could potentially find a better and more affordable gift at its normal retail price, so don’t just limit yourself to sales.
- Be reasonable
Say you want to get a particular gift for someone, but it costs more than you’ve budgeted for that person. You may want to tweak your plans so that you spend less on another gift – or you may have to trade in that idea for a more affordable one.
- Stay on budget
It may be tempting to buy gifts now using your credit card and worry about how to pay it back later, but that’ll cause you problems if you’re not able to clear the debt.
- Think out of the box
Money doesn’t necessarily buy the best gifts. Homemade gifts and cards could be cheaper than store-bought. For instance, you might save money baking cookies rather than buying luxury biscuits specially packaged for the holiday season.
- Give back
You could decide with friends and family to save money on presents and donate to charity instead.
Whatever the holiday season you’re celebrating, it can be easy to get lost in the festive spirit and spend more money than you’d intended. It can help if you set reasonable expectations, make a budget and keep to it, so that you don’t have to worry about any ensuing debt when the fun and festivities are over.
- Ways to save money in 2020
- Infographic: Parents and Christmas
- How do tax credits work?
- What is a trust fund?
- What is Inheritance Tax?
- Closing down a bank account after a death
- What is Marriage Tax Allowance?
- What happens if you don’t leave a will?
- Registering a death
- What happens to property after a divorce?
- Will a prenup protect me if I get a divorce?
- How much does a divorce cost?
- Looking after your credit score while you’re at university
- Guide to credit and debit card protection
- Cashless society and changing savings habits for kids
- Living and working on the UK Minimum Wage
- How to budget if you’re a single parent
- Infographic: Average Equifax Credit Scores across the UK
- How to budget at university
- Guide to sending money overseas
- How to budget for kids going back to school
- How the Budget 2018 will affect your earning, spending and saving
- Infographic: How much does it cost to get married?
- What is the workplace pension?
- Infographic: Millennials and money - What kind of side hustles are they doing?
- Budgeting for the holiday season - gifts
- Budgeting for a wedding
- How much rent can I afford?
- Pension tools and resources
- Planning for early retirement
- Downsizing your home
- What will my state pension be?
- Budgeting for a baby
- Budgeting for a holiday
- An introduction to investments
- Budgeting for a funeral
- Financial planning for parents
- How transferring pensions works
- Helping elderly parents manage their money
- Budgeting for school holidays
- Looking after your financial documents
- New Year, new start to your finances
- How to avoid overspending on special occasions
- Financial Jargon Buster
- Getting Financial Help – The Best Online Resources
- Explaining the Different Types of Savings Accounts
- Understanding Payment Cards
- Money Saving Strategies – Tips on How to Save
- How to Budget Your Finances