Gifts. Food. Travel. The holidays can often be as expensive as they are festive.
In fact, it’s estimated that the average Canadian spent $645 on presents alone in 2023.
Financial stress can put a real damper on this most festive time of year, especially at a time when many Canadians are already struggling to cover their day-to-day expenses.
This is why making a financial plan to tackle the holidays can be a great idea.
Here are a few ideas for setting – and sticking to – a budget this festive season.
#1. Start early
According to a 2022 NerdWallet survey, nearly 1 in 2 Canadians went into credit card debtto pay for their holiday shopping. One way to avoid this (and the costly interest charges you may incur) is to start setting aside money for gifting earlier in the year.
My Money Coach, for example, suggests starting saving as early as January “so that you will have all of the funds on hand before the start of the season.”
Just setting aside $20 or $30 each month means that you could have a few hundred dollars ear-marked for holiday spending by the time December rolls around.
#2. Make a list – and stick to it
It can be tempting to try to get everyone everything on their wish list – until you’re the one stuck with that credit card bill in January.
By taking some time to make a list – and ensuring it all comes within a pre-budgeted amount you know you’re comfortable spending – is one way to help ensure you’re making everyone happy this holiday season.
This also helps cut down on “budget creep,” which can happen when you impulsively add gifts to the list.
#3. Find ways to save
Look for places where you can economize this holiday season. Maybe that means hosting fewer people at your holiday party, or making the big festive dinner a potluck so the catering cost can be spread among everyone attending.
You could also opt for free ways to celebrate the festive season rather than expensive ticketed events, like going for a walk in the snowy woods rather than seeing that expensive holiday show.
You could also save money by thrifting or making your gifts rather than buying them new or trying to take advantage of Black Friday sales to get your presents at a discount.
Money Mentors also suggests gifting your time – walking their dog, babysitting their kids for an evening, sharing a skill you have – as an alternative to spending money on physical gifts.