Supply chain, shipping delays, and inflation can make it hard to create and stick to a budget during the holidays
Planning ahead and knowing your spending limits are more important than ever.
How can you build a holiday budget that will cover buying for everyone on your list while keeping you out of debt? BBB recommends the following steps for calculating your seasonal budget and sticking to it.
Holiday budgeting FAQ: How to plan spending and avoid debt
Review any outstanding debts, especially high-interest debt. If you can’t pay it off before the holidays, reduce spending and focus on low-cost or free ways to celebrate. Prioritizing debt repayment first helps you avoid adding financial stress.
Inflation can increase the cost of gifts, groceries, gas, and other holiday essentials. Compare prices before buying, adjust your budget where necessary, and consider scaling back gift-giving to stay on track.
Create a detailed gift list with every recipient, set a price range for each, and brainstorm ideas in advance. This helps prevent impulse purchases and ensures you stay within your overall budget.
Use a budgeting app, spreadsheet, or notebook to monitor purchases. Knowing exactly how much you’ve spent keeps you accountable and helps prevent overspending.
Take advantage of Black Friday, Small Business Saturday, and Cyber Monday deals, plus loyalty points or cash-back programs. Compare prices, look for free shipping, and bundle purchases where possible.
Are there additional tips to manage holiday expenses?
Start saving early to reduce financial strain
Set aside funds for unexpected expenses or last-minute gifts
Plan for travel costs, including transportation, hotels and meals
Avoid panic buying - shortages don't justify overspending
Consider alternative gifts, like handmade items, acts of service, or family gift exchange
For more information