3-Ways to Manage Holiday Spending | by Felicia Bates l Vancouver, BC
The holidays can be a stressful time when it comes to spending, and we often feel the pressures of having to overextend ourselves in order to buy gifts for our loved ones. Beyond the financial stressors, finding a gift that each person will use and appreciate can be a tall order. Year after year, our family and extended family were finding that we were overspending and overwhelmed by the sheer number of gifts exchanged. Although thoughtful, it really was in excess and put additional stress on family members who had smaller budgets to work with. As a family, we came together and came up with a solution to manage our holiday spending that would allow everyone to stay within budget, reduce the overall number of gifts exchanged, and keep stress low for everyone. Here's what we came up with:
1. WE DECIDED TO FOCUS ON GIFTS FOR THE KIDS INSTEAD OF THE ADULTS
For the adults in the family, budgets are agreed upon beforehand. For example, $50/adult (before tax), and we draw Secret Santa names so that each person only has one individual to purchase a gift for.
2. WE STARTED USING WISHLISTS
We like to buy gifts that would actually be beneficial to the recipient, instead of something they may not like or use. Doesn't that take the surprise out of receiving a gift? Not at all! As an example, you could put things like fiction books, cook books, long sleeved shirts, dress shirts, etc. on your wish list and your Secret Santa would decide which items to purchase and which stores to purchase from. This way the gift giver can still personalize the gift they are giving.
3. WE USE THE 4-GIFT RULE FOR THE KIDS
No budgets are given for the kids but to prevent overspending and an abundance of extra toys or clothes we use the 4-gift rule. This really helps reign everyone in, we know the holidays are a special time for our children but it's also incredibly easy to overspend. Children are often overwhelmed with too many gifts, and sometimes less is more. Here's what the 4-gift rule means, each child can receive:
1. Something they need
2. Something they want (from their wish list)
3. Something to wear
4. Something to read
This has greatly made a difference in our holiday spending, and made the process a lot more manageable for all family members. It sets clear budgets and expectations for everyone and cuts down on the stress of finding the "perfect" gift. A good tip is to set the budget and draw Secret Santa names early so everyone has enough time to save, shop, and get organized, so you can focus on what's important and spend time with family and get some much-needed rest and relaxation.
How do you manage your holiday spending?
Leave your tips in the comments below!