A BUDGET-FRIENDLY CHRISTMAS: Tips to reign in the spending not the magic

Itโ€™s the most wonderful time of the year, filled with activities from trimming the tree to visiting Santa to wrapping gifts. However, all that holiday cheer comes with a price tag: according to the 2023 Holiday Outlook, Canadians plan to spend $1,347 over the holidays. 

With high inflation and ballooning food costs, families may feel the pinch this holiday season. However, you can still make it a magical time for your family without racking up additional debt. โ€œThis is a good opportunity to reflect on what your values are and what’s most important to you,โ€ says personal finance writer, Sandy Yong. 


Make a holiday budget 

Managing spending over the holidays starts with creating a budget – ideally ahead of time. โ€œThis way it allows you to save money, so you don’t feel as much financial strain during this time of year,โ€™โ€™ Yong explains. โ€œIt also means you’ll be less tempted to rack up your credit card or to put your purchases on a Buy Now, Pay Later (BNPL) plan.โ€  

Creating a detailed budget will help you be mindful of your spending habits. If youโ€™ve got kids, the bulk of your holiday budget will likely be allocated towards gifts. โ€œHowever, donโ€™t forget to include other categories such as decorations, photos with Santa, entertainment and festivities, meals, travel, and holiday attire – ugly Christmas sweaters, anyone?โ€ says Yong.  


Spend wisely 

Creating a budget is the first step to managing finances, but the real test is following it. Whether itโ€™s a notebook or a spreadsheet, keep track of what you are spending. 

โ€œHaving a spending limit and comparison shopping will also help to ensure that you don’t go over budget,โ€ says Yong. โ€œBefore heading to the stores, check to see what you already own. You may find some holiday arts and crafts or attire that you stored away that you can reuse.โ€ 

There are also plenty of free apps to help you find the best deals, whether itโ€™s Flipp for shopping for holiday groceries, or save.ca for gifts and electronics. Yong also suggests looking for deals during Black Friday and Cyber Monday. Or if youโ€™re someone who is a last-minute shopper, you may score a great deal on early Boxing Day sales.  

If you have a large extended family, consider swapping individual gifts for a Secret Santa. Alternatively, buy a gift the whole family can enjoy – like a board game. 


Immerse yourself in the magic 

Itโ€™s tempting to want to spoil your kids over the holidays, but itโ€™s the time you spend together that will probably matter most to your family. And those activities donโ€™t have to break the bank. 

โ€œConsider more affordable activities and holiday traditions such as baking cookies or going ice skating,โ€ says Yong. Attending a carol service, hosting a holiday movie night, or packing a thermos of hot chocolate and checking out the Christmas lights in your neighbourhood are all free activities. โ€œUltimately, spending quality time with your loved ones and taking photos and videos of these special moments will help you create everlasting memories.โ€ 

Leave a Reply