Budgeting for Your Holiday List

The holiday season is filled with cheer and fond memories of cozy fireplaces and twinkling lights each year. But just as you take the first sip of a long-awaited peppermint mocha, the overwhelming thought of holiday shopping creeps in.

You start to feel panicked and begin searching online for deals on gifts for your family, friends, and coworkers. Before you know it, you have dozens of packages on the way, along with the dreaded credit card bill you must confront at the end of the month.

Holiday financial planning can be challenging, but it doesn’t have to be like this.

With these tips and tricks from PACU’s President & CEO Dion Williams, Santa will not be the only one cruising through to the new year.

On this month’s Headlines and Fine Print episode, Dion advises staying on the financial nice list by navigating the holidays with a plan.

Make a list and check it twice.

Just as grocery shopping on an empty stomach can lead to impulse buys, holiday shopping without a plan can lead to overspending.

"Having a holiday list prepared and sticking to it helps keep you on task and budget," Dion said. "There are a lot of 'deals' that can catch our eye while shopping than can derail the list."

Dion suggests two approaches to help you stay within budget and keep your holiday list manageable. First, consider drawing names within your family or friend group. That way, you will buy fewer gifts and stay within your budget.

Second, avoid shopping at the last minute. Knowing in advance who you’re shopping for gives you time to find the perfect gift, wrap it and place it under the tree, all without needing to pay for expedited shipping.

Remember, it’s the thought that counts.

Not every meaningful gift has to be purchased. Maybe you are talented at cooking or organizing and can offer your talents to loved ones during the holidays.

“From my experience when my kids were younger, a certificate to watch the kids so my wife and I could have a night out meant much more than something that came from a store,” Dion said. “Regarding charitable giving, a charity may need time and talent more than money. Not to mention that giving your time and talent may feel more rewarding.”

It’s not all about spending.

While spending money may be the first thing that comes to mind during the holiday season, there are also ways to earn and grow money.

If you have extra time, seasonal employment can offset holiday spending or boost your savings.  

“Holiday spending doesn’t have to wipe out your checking account,” Dion said. “This can be a time to offset spending or add to your savings.”

Another way to earn, not spend, is to consider opening a club account. This is a great way to save for next year’s holiday season and develop a year-round saving habit.

Buy Now, Pay Later?

Like many financial tools, Buy Now, Pay Later options have benefits and risks. While these options typically have a shorter repayment period than credit cards, the cost can increase.

“You could add several hundred dollars a month to your budget after the holidays, repaying purchases on these plans,” Dion said. “Interest can also be high, similar to credit cards.”

If you use a Buy Now, Pay Later option, read the fine print.

Hopefully, these tips and tricks will ease your holiday financial burdens so you can focus on what’s most important- time with your loved ones.

To hear more from Dion, watch or listen to more Headlines and Fine Prints episodes on YouTube and Spotify. For more information about PACU's wealth of financial resources, visit www.pacu.com.