holiday spending Archives - Consumer Credit

Tips To Help Control Holiday Spending

Dilini Dias Dahanayake — Tue, 12 Dec 2023 16:00:06 +0000

The holiday season is a time for joy and celebration, but it can also be a time of financial stress. With so many gifts to buy and events to attend, it’s easy to overspend and go into debt. However, with some planning and budgeting, you can enjoy the season without breaking the bank. Here are some tips to help you control your holiday spending.

Enjoy your holidays freely with these tips on how to control holiday spending.

Tips to Help Control Holiday Spending

Set a budget:

Before you start shopping, decide how much you can afford to spend and stick to it. This will help you avoid overspending and going into debt. You can use budgeting apps like CreditU to help you track your expenses and stay on top of your finances. Knowing your limit before you begin spending is the most crucial tip to control holiday spending. With the holiday vibe displayed in full swing where ever you go it is not an easy task. However, setting a boundary with a budget helps you refrain from unnecessary spending.

Make a list:

You may have anyone from your family, extended families, friends and nephews and nieces who you really want to gift something during the holidays. Start by creating a list of the people you want to buy gifts for and what you want to buy them. It i ideal to include a budget for each person so that you are aware of your spending requirement and ability. This will help you stay organized and avoid impulse purchases. You can also use this list to compare prices and find the best deals. This is basically your gift bible for the season.

Shop early:

Start shopping early to avoid last-minute panic buying. This will give you time to compare prices and find the best deals. You can also take advantage of early bird sales and discounts. If you have the financial planning done prior to Thanksgiving weekend, you can take advantage of the Black Friday and Cyber Monday Deals. The consumer landscapes have changed so rapidly that deals are now better even before the big holidays. Keep track of such deals and retailers and take advantage by shopping early.

Use cash:

Time and time again, the envelop method has proven to be a solid strategy to manage finances in tough times. If you are managing holidays ina high stress financial situation, consider using cash instead of credit cards. This will help you avoid overspending and keep you from going into debt. You can withdraw cash from your bank account and use it to pay for your holiday purchases.

Look for deals:

Look for deals and discounts on items you want to buy. Many retailers offer special promotions during the holiday season. You can also use price comparison websites to make sure you are up on the deal. Many retailers have price match programs and make sure you take full benefit of such programs. Keep a track of the deals to purchase your gift items at the right time.

Consider alternative gifts:

Consider giving alternative gifts such as homemade gifts or experiences instead of store-bought items. This can be a great way to save money and create lasting memories. You can also consider giving gifts that are eco-friendly or sustainable. As fun as it is to wrap a perfect gift from the store, it is also going to be costly. Instead, if you are a creative person look into more personalized DIY gifts. Some ideas may be creating your own jewellery, making candles or a hand made craft as a gift. Your family and friends will likely appreciate a personalized gift from you rather than something off the shelf.

Avoid impulse purchases:

Avoid making impulse purchases by sticking to your list and budget. You can also avoid shopping when you’re hungry or tired, as this can lead to impulse purchases. It is natural to get attracted to things that look good on a shelf even when you don’t really need them. Make a conscious call on whether or not you can do without it. Keep in mind all of this spending will snowball into the next month’s finances.

Remember the reason for the season:

Finally, remember that the holiday season is about spending time with loved ones and creating memories, not about buying expensive gifts. Make time to create memories with your family and friends without just limiting it to the material things. Make a meal together, bake some cookies with your kids or decorate a gingerbread house. The material things will decay. The memories you create will always bring a smile on your face when you look back.

Bottom line…

By following these tips, you can help control holiday spending and enjoy the season without breaking the bank. Remember to set a budget, make a list, shop early, use cash, look for deals, consider alternative gifts, avoid impulse purchases, and focus on the true meaning of the season. Remember, the holidays are more about the spirit of giving and spending time with loved ones than about extravagant gifts and expenses. Happy holidays!

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.

Holiday Budget – Tips to Build A Realistic Plan

Dilini Dias Dahanayake — Mon, 04 Dec 2023 16:00:09 +0000

Are you looking for ways to enjoy the holidays without breaking the bank? Do you want to learn how to plan a realistic and stress-free budget for your festive spending? If so, you’ve come to the right place! In this post, we will share with you some tips and tricks on how to build a holiday budget that works for you. I’ll also answer some of the most frequently asked questions (FAQs) around holiday budgeting. Let’s get started!

Holiday budgeting is an essential part of your year end personal finances.

Why Do You Need a Holiday Budget?

First of all, why do you need a holiday budget? Well, a holiday budget can help you avoid overspending, debt, and financial regrets. It can also help you prioritize your needs and wants, and allocate your money wisely. A holiday budget can also give you peace of mind and confidence that you can afford the things that matter most to you during this special time of the year. Having a solid plan can help you get over potential financial frustrations post holidays.

How Can You Create a Holiday Budget?

The fundamentals to creating a holiday budget is the same as creating any other budget. Having a separate plan for the holidays can help you avoid any hidden expenses or you having to eat into your main household budget. Here are some steps to follow:

1. Set your overall spending limit.

This is the total amount of money that you can afford to spend on the holidays, without going into debt or dipping into your savings. You can base this on your income, expenses, and savings goals. Be realistic and honest with yourself about what you can comfortably spend.

2. Make a list of all your holiday expenses.

This includes gifts, travel, food, decorations, entertainment, donations, and anything else that you plan to spend money on during the holidays. Don’t forget to include taxes, shipping fees, tips, and other hidden costs. Be as through and realistic as you can to avoid any surprises along the way.

3. Assign a budget for each expense category.

Divide your overall spending limit by the number of categories that you have, and allocate a specific amount for each one. For example, if your spending limit is $1,000 and you have five categories, you can assign $200 for each category. You can also adjust the amounts based on your preferences and priorities. For example, if you value travel more than gifts, you can allocate more money for travel and less for gifts.

4. Track your spending and stick to your budget.

As you shop and spend money on the holidays, keep track of how much you spend and how much you have left in each category. You can use a spreadsheet, an app such as CreditU, or a simple notebook to record your transactions. Try to stay within your budget and avoid impulse purchases or unnecessary expenses. If you go over budget in one category, try to cut back in another category to balance it out.

5. Review your budget and make adjustments as needed.

At the end of the holidays, review your budget and see how well you did. Did you stay within your spending limit? Did you overspend or underspend in any category? How did you feel about your spending decisions? What worked well and what didn’t? Use this information to improve your budgeting skills and plan better for next year.

FAQ: Holiday Budgeting

1.How Early Should I Start Planning My Holiday Budget?

The earlier, the better! Starting a few months in advance allows you to spread out your expenses and avoid last-minute financial strain. It’s also a great opportunity to take advantage of sales and discounts throughout the year.

2. How Much Should I Budget for Gifts?

This depends on your overall financial situation. A good rule of thumb is to allocate a percentage of your monthly income towards gifts. Remember, it’s the thought that counts, not the price tag

3. How Can I Save Money on Holiday Meals and Decorations?

Get creative! Potluck-style meals can reduce the burden of hosting. For decorations, DIY options can be both fun and cost-effective. Also, consider reusing decorations from previous years.

4. What Are Some Ways to Earn Extra Cash for the Holidays?

Seasonal jobs, freelancing, or selling items you no longer need can provide additional income. Online surveys and cashback apps are also options, albeit generally with smaller earnings.

5. What Are Some Ways to Earn Extra Cash for the Holidays?

Seasonal jobs, freelancing, or selling items you no longer need can provide additional income. Online surveys and cashback apps are also options, albeit generally with smaller earnings.

6. How Do I Handle Social Pressures to Spend More?

Communication is key. Be honest with friends and family about your budget. Suggest alternative ways to celebrate, like handmade gifts or spending quality time together.

7. What Should I Do If I Go Over My Holiday Budget?

First, don’t panic. Review your finances and adjust your post-holiday spending to compensate. It’s also a good opportunity to reflect on what caused the overspend and plan better for next year.

Building a holiday budget doesn’t have to be a daunting task. By planning ahead, being mindful of your spending, and focusing on the true spirit of the season, you can enjoy the holidays without financial regrets. Remember, the best gifts come from the heart, not the wallet.

Share your own holiday budgeting tips in the comments below, or contact us for personalized financial advice. Happy holidays and happy budgeting!

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.

Cheap Last-Minute Gift Ideas

Madison — Tue, 22 Dec 2020 14:00:40 +0000

Sometimes the holidays sneak up on us, and before you know it, there are only a few days left before Christmas. COVID-19 has also made it harder to shop and make holiday plans this year. If you haven’t finished your holiday shopping yet and you’re on a tight budget, don’t panic! ACCC has a helpful list of cheap last-minute gift ideas for you that won’t dig you into a hole of credit card debt:

These last-minute gift ideas bring joy – instead of debt!

Framed Family Photos

Getting photos printed at Walgreens or CVS only costs a few cents, and getting a cute picture frame off of Amazon doesn’t have to be expensive. This gift is great for parents or grandparents, especially since you probably haven’t gotten to see them this year due to COVID. It’s thoughtful, affordable, and easy to get last minute. What’s not to like?

Baked Goods

If you love making cookies, brownies, pies, or any other baked goods, these can be great last-minute gift ideas for friends and family! Plus, you probably already have most of the main ingredients you need, so you won’t have to spend much money (which is perfect if you’re working on debt management). You could always buy some red and green sprinkles or holiday-themed paper plates/trays to put them on, but other than that, this won’t cost anything.

Subscriptions

There are tons of different subscriptions you could get as a last-minute gift for a friend or family member. Netflix, Hulu, Amazon Prime, Book of the Month, or any magazine/newspaper they like vary in price. For most of the aforementioned examples, you can give a gift of a three-month subscription for $50 or less.

DIY Hot Chocolate Mix

Fill a mason jar with cocoa mix, chocolate chips, and marshmallows for a DIY hot chocolate mix. Bonus points for adding fun extras like candy canes or cinnamon sticks! You can decorate the outside of the jar with ribbon or other craft materials to give it a holiday feel.

“Experience” Gifts

We’re all looking forward to the end of the pandemic when we can finally get out and do fun things! Support local businesses by giving your friends and family “experience” gifts, like a pass to an aquarium or museum that they can use when everything is open again. Other ideas that fall into this category include a gift certificates to local restaurants, movie theaters, or a wine & paint night.

Final Tips on Last-Minute Gift Ideas

Holiday gifts don’t have to result in credit card debt – even if you procrastinated and waited until the last minute. Hopefully these cheap last-minute gift ideas can help you get the remainder of your holiday shopping done! Remember to stick to your budget and don’t feel pressured to spend more than you can really afford.

If you struggle to pay off debt, ACCC can help. Schedule a free credit counseling session today.