Stick to your holiday budget this year
If you’re eager to deck the halls this holiday season yet not wreck your budget, join the club. According to findings from a recent survey of 1,000 U.S. adults conducted by Vericast, 46% of consumers feel the need to budget more and reduce their overall holiday spending. This mixed approach to holiday expenses is also seen in party and event planning, where 66% of hosts are looking for ways to save.
Additionally, the willingness to spend more during the holidays has decreased from last year among Millennials (64%, down eight percentage points), parents (65%, down eight percentage points), and millennial parents (69%, down 11 percentage points).
In short, Santa may not need to tighten the belt, but many Americans feel the need. But that’s OK, the experts say: You can still celebrate the season in grand spirits even though you aim to cut costs.
“As we head into the holiday season, being mindful of our spending is crucial. The holidays are a time for joy, but they can quickly lead to financial stress if we are not careful,” says Reagan Bonlie with Nudge Money. “This year, Americans are likely to spend less on holiday entertaining and decorating due to economic uncertainties, instead prioritizing meaningful experiences over extravagance.”
According to personal finance expert Shaun Bettman, by focusing on saving more, consumers can reduce their financial stress, avoid accumulating debt, and enter the new year with a stronger financial foundation.
“Additionally, spending less encourages creativity and thoughtful planning, which can enhance the quality of holiday experiences without sacrificing the joy and warmth of the season,” he continues.
To curb the red ink this November and December, follow these tips:
• Decorate more moderately. “Use what you already have,” suggests etiquette expert and influencer Lisa Grotts. “Don’t upgrade to a new artificial Christmas tree, for example.” Also, try repurposing existing decor items with a holiday twist — such as adding ribbons or festive colors to everyday items. “You can also involve your guests in a DIY decoration activity as part of your holiday gathering, which adds a personal touch and creates a memorable experience,” adds Bettman.
• Go au naturale. “Consider using natural elements like pinecones, branches, and berries — which can be collected from your backyard or a local park,” Bettman suggests. “These can be crafted into beautiful, rustic decorations at little to no cost.”
• Pamper your guests creatively. “If you have folks coming in from out of town, set up the room with creature comforts that won’t cost you anything,” says Ashley Schuering, a money-saving blogger who shares grocery hacks. “I save all my random samples from hotel visits, then set up a little welcome tray. I usually put out a carafe of water with glasses, an assortment of toiletries they may have forgotten, and some inexpensive snacks like granola bars, chocolate, or crackers.”
• Forgo tangible gifts. If you’re hosting a holiday party where you typically exchange presents, ask your guests to exchange nonphysical gifts like stories, songs, or poems instead. “Gifting experiences can be just as meaningful, if not more so, than store-bought presents,” Bonlie notes.
• Make homemade gifts. “I love making as many gifts as possible — not only is it much cheaper, but it also feels more heartfelt,” Schuering says. “Some of my favorites are food-related, like homemade granola, jars of homemade hot chocolate mix, or fruit preserves. I also took up knitting recently, so I am making golf club toppers and beanies this year. And I like to purchase big rolls of plain craft paper rather than wrapping paper.”
• Invest in teamwork. Host a potluck-style gathering, where each guest contributes a dish or drink. “This not only reduces your overall costs but also brings variety to the menu and engages everyone in the festivities,” adds Bettman.
• Plan ahead. “Starting early allows you to shop for deals, make thoughtful decisions, and avoid last-minute, expensive purchases,” Bonlie continues.