Are you looking to establish a holiday budget this year? Then discover some effective strategies for setting up a holiday budget that will enable you to enjoy the season without breaking the bank. Let’s make sure your finances stay on track while you celebrate!


The Earlier the Better


Starting to save early for holiday expenses can help ensure that everyday expenses aren’t being sacrificed. Saving in smaller amounts can make saving for a large holiday goal less of a burden. Our Christmas Club savings account is a great way to save for the holidays since it pulls small amounts from your checking or savings account on a schedule you control. Over time, you will have the funds you need.
Instead of fighting Black Friday crowds to get the greatest deals on items, browse items throughout the entire year for deals. More than likely, items on your shopping list will have random deals throughout the year. Also, you will take away the pressure of fighting to get the item at a busy store during the holidays. Flexibility is the number one advantage to start saving now.


Divide and Conquer


Decide who you need to buy gifts for and what holidays you will be hosting. Some categories to create for gift-giving can be:

  • Family
  • Friends
  • Co-workers
  • Donations (for church or non-profit organizations)

Let’s say you were tasked with hosting the family Christmas party this year – some items to plan for the party would be:

  • Food
  • Décor
  • Cleaning supplies
  • Seating
  • Entertainment/Games

Prioritizing the categories and what items you will need will help you be better prepared and give you an idea of how much money will be going into the holiday season. 


Review the Prior Year and Determine What You Need for This Year


With prices of items, food, and more seeming to rise each year, review what you spent for holiday’s during the previous year. This will give you a rough estimate of how much you can comfortably spend this year. Remember to keep in mind inflation of items, even though the ham for Christmas dinner was $40 last year, doesn’t mean it will stay the same price this year. Once you have the plan, set up your budget and do your best to save for it and stick to it.

Hopefully, these tips have helped you create a holiday budget that brings you peace of mind and financial stability this holiday season. Remember, it’s all about finding the balance between enjoying the festivities and being mindful of your spending. From your friend’s at BankIowa, we wish you a joyous holiday season!

Resources:

NerdWallet