I hope I’m not freaking you out by bringing up the holidays while we’re still enjoying summer, sorry about that in advance! But lately, I’ve been really thinking about how to handle the expenses that come with Christmas and the holiday season.
My partner and I live quite a distance from both our families, with one being a 6-hour drive away and the other a 2-hour drive in the opposite direction. Since everyone else is clustered in one area, we usually end up traveling down for the holidays.
Between the travel costs, food, and gifts, it all starts to add up pretty quickly! Thankfully, we’re lucky enough to stay with family, so we don’t have to worry about extra housing expenses when we travel.
Over the years, I’ve tried a bunch of different strategies to keep costs down:
Saving up throughout the year and setting a clear budget for gifts for each person.
Doing my shopping early to catch sales and avoid the last-minute panic buying.
Opting for second-hand items or making gifts myself when it makes sense.
Suggesting a gift exchange instead of everyone buying gifts for each other.
But there are still a few things I struggle with:
Feeling obligated to get gifts for people I wouldn’t necessarily plan on giving something to, especially my partner’s extended family.
Trying to trim down the list of people I buy gifts for to save money, but finding it difficult with our large family.
So, I’m curious:
How do you manage to stay on budget during the holidays?
And how do you handle it when others seem to have more money to spend on gifts than you do?
I know it’s the thought that counts, but for some people, the price tag still matters. Personally, I’d be happy with a smaller or second-hand gift, or even just a thoughtful card, but not everyone sees it that way.
Thanks for any advice or insights you can share - here’s hoping for a less financially stressful holiday season for all of us!
For me, what really works is sticking to a monthly budget and spreading out my gift purchases throughout the year. I’ve also set up a specific budget category where I allocate funds for great deals - so if I come across a product I need or a gift idea at a discounted price, I go ahead and make the purchase. If I don’t find anything worthwhile or there aren’t many deals, I simply carry over the remaining amount to the next month’s deal category.
Regarding unexpected gifts, they’re not something I personally encounter often. However, my mom, being quite the socialite, faced this dilemma frequently. Her solution was to dedicate a cabinet in her home as a “gift cabinet.” She would scout out nice, generic gifts that were on clearance - like travel mugs, cozy throw blankets, scented candles, and such - and stash them away in the cabinet. Then, if the need for an unexpected gift arose, she already had a selection of items on hand and could easily choose something from the cabinet.
My partner and I face similar challenges with holiday expenses due to travel and a large extended family. Over the years, we’ve found that setting a budget early on and sticking to it helps a lot. We’ve also had honest conversations with family about our financial constraints and suggested alternatives like gift exchanges or homemade gifts. It’s all about finding what works for you and your loved ones.
Budgeting and advance planning are crucial for managing holiday spending. It might be helpful to set clear spending boundaries for presents and vacation, buy early to take advantage of deals, and think about other options like homemade or used goods. Financial hardship can also be reduced by being upfront with family members about spending limits and offering gift swaps as alternatives.