Canadians are gearing up for the holiday season, filled with traditions and special moments. Between buying gifts, preparing elaborate meals, decor, and events, Christmas shopping costs can add up quickly! The good news is you can keep Christmas shopping affordable while staying true to the festive spirit.
Here are some practical ways to budget wisely for the season, so you don’t have a financial hangover come January.
Budgeting and planning for Christmas shopping
A well-thought-out plan can help you avoid impulse purchases. Planning ahead and making a budget will help you stay financially comfortable.
- Set a firm spending limit. Often, people only calculate the cost of gifts, but all holiday expenses add up. So make sure you calculate all holiday expenses, not just gifts. You’ll want to include the cost for events, meals, travel, decor, and smaller details like wrapping paper or holiday cards. Think realistically about what you can afford, and try to avoid relying on credit cards.
- Use the envelope method. Allocate cash into different envelopes, with categories like gifts, travel, or meals. Once the cash in an envelope is gone, that’s all you can spend on that category. This way of budgeting makes sure you can’t overspend. It’s a great way to foster accountability, too.
- It is vital to communicate your budget with your family. Set expectations and be transparent. If you have older kids, you may want to include them in the planning as well. This helps manage expectations, and as a bonus, also teaches them financial responsibility. Younger kids can have their own Christmas savings jar.
- Shop early to avoid last-minute markups on price. Shopping early means you can take advantage of sales and reduce the stress of December gift hunting. If you’re making handmade gifts or crafts, starting early means you’ll be able to make meaningful gifts with time to spare.
- If you want to free up extra funds for Christmas shopping, consider making small lifestyle adjustments. Try to temporarily cut back on discretionary expenses to give you more room in your Christmas budget.
Benefit from ongoing sales
The holiday shopping season is prime time for promotions and sales. With some careful planning, you could significantly reduce your overall expenses.
- Look for limited-time promos, Christmas deals, flash sales, and holiday gift bundles. You will often see popular items packaged into gift sets at a discounted price.
- Take advantage of coupons, loyalty programs, and cashback offers. These small savings can add up quickly, which can help stretch your budget.
- Plan your gifts well in advance. This way, you can take advantage of free shipping thresholds. By combining purchases, you can avoid extra delivery costs. Using buy-one-get-one offers or bundled value sets can help you cover gifts for multiple people at once.
- Browse online for price checks. Price comparison tools are also helpful. However, try to support local stores when you can. Plus, many offer in-person pickup options that can help you save on shipping.
Christmas shopping gift ideas
Memorable gifts are about thoughtfulness, not the price tag.
People often love to receive homemade gifts. From baked goods to scrapbooks to a knitted scarf, handmade items carry sentiment and meaning.
You also have the option of practical gifts or shopping local. For example, local coffee beans or handmade soaps are luxe yet affordable. Many small businesses and homegrown Canadian brands offer custom gifts, making for unique and thoughtful gifts.
An increasingly popular option is experiential gifts. Instead of buying another item, consider family experiences like a skating trip or going to watch a play. A pass to the museum, zoo, or gallery can help create shared memories. Baking cookies or watching holiday movies together can help make the season special without spending much.
If you want to do something different from the traditional gifts, you can suggest alternatives to your family. Spending time volunteering together or making a group donation to a charity can shift your holiday focus towards community.
Shop smart
Shopping smart isn’t just about gifts. Holiday decor, hosting, and seasonal extras can also chip away at your budget.
Find holiday decor at thrift stores or secondhand shops for an inexpensive way to decorate your home. You might even find some beautiful vintage candle holders, votives, and ornaments!
Buy seasonal decor and items after the occasion, when prices are often deeply discounted. For example, after Christmas, stores discount decor, wrapping supplies, and even gifts. Stock up for next year!
When it comes to celebrating, consider options like potluck dinners, Secret Santa, or white elephant gift exchanges. It’s a great way to create holiday memories without the high expenses.
Save a little money each month so you’ve got a healthy Christmas budget by the end of the year. Putting away just $25 a month gives you $300 by December! If your paycheque comes biweekly, you could set aside one of the “extra” paycheques from the months you get three paycheques instead of two. This could then be your Christmas budget.
Final thoughts
The holidays needn’t derail your finances. With some careful planning and smart shopping, you can make Christmas magical and memorable, within your budget. Balancing financial discipline with meaningful gifts can go a long way.
If you end up overspending during the holidays or are in debt and want to gain a good financial footing for next year’s holidays, we can help. Contact one of our trained credit counsellors for advice – they can help you figure out the right debt relief strategy for your specific situation.
