How to Budget for the Holidays

Dec '22 — 3 minute read

Making the holiday season special for your family doesn’t need to break the bank. The best way to make sure to stay within your budget is to have a plan. 

But where do you begin?

Our team has put together a budget guide to help you strategize this holiday season. Every household is different and will need to adjust this guide to best fit their own personal circumstances. We hope these holiday budgeting tips give you a good start to a magical and cheerful season.

1. Determine a Spending Limit

The amount of money you want to spend may be different than the money you CAN spend. Start by looking at your household income, subtract your expenses, and determine what amount is best for your family. If that number isn’t what you want it to be, this will help you prepare for future holidays by saving up throughout the year. 

It may be helpful to know that Investopedia reported $832 as the average amount that consumers expect to spend on winter holidays in 2022. This is less than previous years.

2. Make an Expense List - and Check it Twice!

Knowing what you need to spend money on will help you place money where it needs to go. Here is a list of common holiday expenses:

  • Gifts (family, friends/neighbors, extended family)
  • Wrapping paper
  • Christmas cards - pictures, stamps, and envelopes as well!
  • Charitable contributions
  • Food
  • Decorations
  • Travel
  • Holiday Activities

Check out Freshly Picked’s holiday mocc collection HERE.

3. Set Priorities

Knowing what is most important to spend money on will help as you do an expense list breakdown. Order the list from most important to least. For example, buying new decorations every year can be fun, it isn’t necessary. Unnecessary expenses can really hike up your holiday budget.

4. Breakdown your Expense List

Desiginating aset dollar amount for each category helps you make purchase decisions. It will also let you know if you need to make some adjustments to better enjoy the holidays. One idea to help you stay within the budget include homemade gifts. A fresh loaf of bread and some butter or a plate of cookieswill still show someone you care without spending lots of money.

5. Schedule Sales, Deals and Discounts into your Calendar

Saving a calendar reminder of when your favorite companies are running promotions will help make sure you take advantage of these deals and save money and ultimately help you stick to your budget. Common times for sales promotions include Black Friday, Cyber Monday, and the last two weeks right before Christmas. Those last two weeks before Christmas are the final stretch for busy families to get gifts in time - businesses know this and want to convince you to shop with them. Keep in mind shipping times when shopping the two weeks before christmas.

Another great way to save money during the holiday season is to shop sale items. Some companies have a page on their website dedicated entirely to sale items. Freshly Picked has a dedicated sales page with diaper bags, baby moccasins, and more on clearance.

We hope this has given you some insight on how to budget for festivities to come. Planning ahead and knowing your expenses will set you up for successful budgeting this holiday season. Best of luck and happy holidays!