Creating a Holiday Budget: The Most Wonderful Time of the Year
Creating a Holiday Budget: The Most Wonderful Time of the Year
Ah, the holiday budget season always approaches so fast.
One minute you are sipping umbrella drinks in Summer at the beach — and then out of nowhere — you are creating a holiday shopping list, hoping not to overspend this year.
While the holidays are great for spending time with family, friends, and giving to others — it can also be stress-inducing when it comes to your bank account.
But there are ways to ensure you stick to your budget and keep your personal finances happy. Below are a few essential tips to ensure you don’t go into debt or overspend this holiday season.
Holiday Spending Statistics
It’s crazy to see stores and online ads for holiday shopping before November even starts. Sometimes it even begins before Halloween even has a chance to slow down.
Sigh.
But at the same time, many people (myself included) like to get a head start on planning and purchasing items before the mad seasonal rush begins.
I thought before we got into some holiday budget tips, I’d share some interesting statistics around holiday spending.
According to Cloudways:
Gen X wins the award for the highest holiday spending with an average of $782 in the USA and £425 in the U.K.
Millennials spend the second most during the holiday season with an average holiday spend of $609 in the USA and £416 in the UK.
Baby Boomers tend to spend the least during the holiday season with an average of $576 in the USA and £350 in the UK.
Today, the average consumer spends $1,226 on Holiday Gifts
And if you look back on any historical data, you’ll see these numbers continue to rise each year. Of course these are just some averages, so you might typically spend less or even more.
Additionally, 22% of Americans believe their Christmas spending will leave them in debt according to Fortunly. Yikes!
This is where creating a holiday budget will become critical to helping you avoid debt and not overspending based on impulsive buying.
How To Create A Holiday Budget
As you begin saving for the holiday season, you should create a budget to help you stay on the right financial path. Going into debt and overspending is not a great way to go through the holidays and start off the upcoming new year.
But remember, it’s not just gift giving that adds up either. It’s everything from parties, work functions, decorations, and food. All these things can wreak havoc on your financial goals and debt.
Here are some tips to creating a simple, but effective holiday budget.
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