1. Set a Realistic Holiday Budget
Before diving into holiday shopping, take a step back to assess your financial situation. We’ve written about the 50/30/20 rule and how it’s a tried and true method for creating a realistic budget. If you don’t have a budget yet, consider starting with this simple budgeting method our financial experts wrote about:
- 50% for needs (essential expenses)
- 30% for wants (non-essential spending)
- 20% for savings and debt repayment
When it comes to the overindulgence of the holidays — and we’re not just talking eggnog and sweets — holiday spending is a real problem for us Americans. According to a recent report, 7 out of 10 households overspend on the holidays. By allocating your holiday wish list under the “want” category, you can set a total spending limit that won’t strain your finances or lead to debt. Consider all holiday-related expenses:
- Gifts
- Food and beverages
- Travel costs
- Decorations
- Entertainment
Once you have a total budget, break it down by category. For example:
- Gifts: 60%
- Food and beverages: 20%
- Travel: 10%
- Decorations and entertainment: 10%
Track your spending throughout the season to stay within your limits. You can use a spreadsheet, budgeting app, or even an old-fashioned pen and paper to monitor your expenses.
2. Make a Gift List (and Stick to It)
3. Shop Smart: Hunt for Discounts and Deals
4. Create DIY Gifts That Are Luxe Not Lame
If you’re on a tight budget, consider making homemade gifts. We know, we know, but hear us out. DIY gifts are often more meaningful — and cost less. Many of you reading this are thinking homemade gifts are just lame but they can be a little more luxe if you put some thinking into it. You don’t have to resort to making homemade jelly or bread (unless that’s your jam) but inventory your skills, interests and hobbies. These talents can translate into unique, personalized gifts that feel high-end. Some ideas:
- A beautifully framed, professional-quality photo
- A custom-designed piece of digital art
- A hand-knitted luxury scarf or throw
- A personalized, leather-bound journal
Remember, the key is to play to your strengths and create something that showcases your talents. These gifts demonstrate that you’ve put thought and effort into something special — something that won’t be tossed aside the minute January rolls around.
5. Don't Forget Post-Holiday Expenses
6. Take a Break From Social Media
If you’re too tempted to shop while scrolling, consider taking a break from social media. Seeing picture-perfect vacays, lavish gifts, or over-the-top decorations can make you feel like you need to keep up with the Joneses. But it’s not just friends and family influencing your spending — social media platforms are filled with targeted ads and influencers promoting products, which can subtly (or not so subtly) encourage impulse buying.
Remember that influencers are often paid to promote products, and their lifestyle posts may be heavily curated and not representative of their everyday reality. Similarly, the ads you see are designed to make you want to spend money, regardless of whether you need the item or not.
It’s important to keep in mind that everyone’s financial situation is different, and the perfect Instagram feed rarely shows the financial reality behind the scenes. What you see online is often a highlight reel, not the full picture. Don’t go into debt just to keep up.
7. Use Cash or Debit to Stay on Track
Plan Smart, Spend Mindfully and Enjoy the Season Ahead.
The holidays should be about making memories, celebrating wisely, and lots of time with loved ones and friends — not financial stress. With these simple budgeting tips, you can avoid overspending and truly enjoy the season. At TFNB Your Bank for Life, we’re here to support your financial well-being every step of the way. Whether you need budgeting tools or safe, reliable banking services, we’re here to help.
Have questions about how to keep your finances on track? Our friendly bankers can help you! Find a location nearest to you and stop by to learn more about our personal banking.
If you have any questions or would like to know more about our banking solutions, contact us at 254-840-2836
