So Christmas is less than 2 months away, and you haven’t even thought about how you’re going to pay for it all.
As moms, we want to make Christmas the most magical time of year for our kids. But how do we make this happen amidst the rising costs of everything we need to just survive? How can we make Christmas happen and avoid spending money we don’t have on credit cards?
If you’ve ever overspent during the Christmas season, you’re not alone, with about 35 percent of Americans going into debt during the holidays last year in 2022.
The average amount Americans spend on the Christmas holiday altogether between gifts, other purchases, and things like decorations and food. is right around $1000.
Giving gifts and having a great time at Christmas is wonderful, but remember when all is said and done, no one will be left to pay your bills but YOU.
You can create Christmas magic for your kids and family on a budget, and stay rich this holiday season. Here are some tips on how to avoid going broke for the holidays:
1. KNOW YOUR FINANCIAL LIMITS. MAKE A CHRISTMAS BUDGET AND STICK TO IT
If you haven’t already been planning for Christmas, and setting money aside throughout the year, it’s time to crunch the numbers and see how much money you have right now for your holiday spending.
You’ll need to figure out:
- Your total estimated monthly income
- The total amount for your December bills
- The total amount for your other important December expenses (like food, gas, etc.)
Once you’ve got these numbers, you’re going to add up ALL of your December bills and other important December expenses and subtract this number from your total estimated December income.
This is how much you have leftover to save, or spend on Christmas!
You’ll want to make a “Christmas Budget” by assigning a dollar amount to each “Category” of your holiday spending.
Let’s go with a $500 example, which is way less than the $1000 that the average American is spending on Christmas, and honestly a bit more realistic in my opinion right now.
Here’s how I might budget if I had $500 to spend on Christmas 2023 as a single mom of 2 kids.
- Gifts for Kids: $150 ($75 per kid for my 2)
- Fun Holiday Outings/Activities: $100
- Holiday Food: $75
- School Events/Parties: $25
- Holiday Clothing: $40
- Gifts for others (extended family, anyone else): $100
- Wrapping: $10
- Decor: ZERO $0
You can also add a category for “other” as a buffer, just in case other expenses pop up that you didn’t think of before.
You can always change things up and move your holiday budget money around between the categories you set.
This step is quickly going to get you a realistic, accurate number of how much money you have for the Christmas holiday this year.
If this number is way smaller than you want it to be, or maybe nonexistent, It’s time to figure out how you can earn more money quickly!
You might have to work more hours, put in overtime, or do some side hustles if you want to increase your Christmas spending budget.
2. DON’T SPEND TOO MUCH ON NEW HOLIDAY DECOR AND TRY TO USE WHAT YOU HAVE
YES, I want that Home Depot Christmas tree too!
I want to buy a yard full of Christmas inflatables and turn my house into a winter wonderland for my kids, but I’m going to be realistic and know that I just can’t spend money on these things this year.
If money is tight, Christmas Decor is definitely something you can skip or buy less of this year…especially if you’ve already got some tucked away in your garage that will get the job done.
Here are some great ways to decorate on a budget without buying new stuff.
- shop for decor RIGHT AFTER the holiday ends for major discounts on your holiday decor to save for next year
- Buy used things on Facebook marketplace or other online selling platforms
- Check the thrift stores
- Check your local “Buy Nothing” or “Everything’s Free” groups on Facebook or Nextdoor
Buying new stuff really is the best, but you can create those cozy Christmas vibes with a lot of the stuff you already have and save tons of money this year.
3. BE A SMART CHRISTMAS SHOPPER: Plan Ahead, Check for Deals, Use Coupons, & Take Advantage of Special Discounts
Last-minute shopping is a recipe for overspending! Be prepared to shop smart this Christmas and get the best possible deals out there.
Have your list ready by Black Friday to do as much shopping as you can then!
Prepare by researching items you want to buy online, comparing prices, and looking for special deals and coupons. Shopping early also gives plenty of time for items to be shipped if they are out of stock in store.
Ask for discounts wherever possible for first responders, military, teachers, nurses, students, etc.
Also, check if a retailer has any special coupons, and if they offer price matching. Always be prepared to check if they will honor an online price that’s cheaper if you’re shopping in-store.
This is the best time to open new store credit cards. Most retailers will offer a significant discount when you first sign up for their credit card.
Amazon.com, Kohl’s, Ulta, JC Penney, and many others have offers like this. They may even have a period of zero percent interest.
And never say never to shopping used! Books are such a great item to buy used for gifts, I’ve gotten many free books for up to $5 at thrift stores, used bookstores, and Facebook marketplace.
Kids just want to read the books and aren’t going to care if they aren’t brand new.
4. DON’T BUY GIFTS FOR EVERYONE YOU KNOW
Yes, it’s the season of giving, but remember you’ve gotta put on your oxygen mask first! Every little purchase adds up.
A handful of $5, $10, and $20 purchases can quickly turn into hundreds of dollars spent.
Start with the most important members of your family, such as your spouse and kids. If you have money left over, then you can buy gifts for others such as your extended family and pets.
You don’t HAVE to get gifts for every single family member, friend, acquaintance, neighbor, and teacher if you just can’t fit it into your budget.
If you do have a pretty big list of people outside of your family to buy gifts for, a $5 gift card with a handwritten note gets the job done!
5. SAVE MONEY WITH HOMEMADE DECOR AND GIFTS
Get on Pinterest and check out the countless tutorials for homemade sentimental gifts. These can be a great idea for extended family members when you are trying to stretch your dollars.
DIY your Christmas decor. Chances are you’ve got some sort of art or craft supplies scattered around somewhere.
Check online for some inspo and try to use what you already have to avoid spending money on a bunch of new stuff.
There are lots of great Christmas crafts, gifts, and decor you can make with your kids using stuff like:
- Pinecones
- Leftover pasta sauce jars
- Construction paper
- Cardstock
- Ribbons
- Orange slices
You can DIY your gift wrapping by using simple brown paper and twine. Or get your wrapping paper in single rolls and use the same wrapping until it’s all gone!
Yes, it’s “boring” and not as fun as wrapping gifts with $20 worth of bows per package. But let’s not go broke over something that will get thrown away on the day after Christmas.
STAY RICH THIS HOLIDAY SEASON AND AVOID DEBT
You do NOT have to go into debt this Christmas to keep things magical and festive for your kids and family. Remember your financial goals and stick to them!
If you are already living paycheck to paycheck, or even close to it, overspending at Christmas and paying off that debt can take a very very long time due to such high credit card interest rates (trust me, I speak from experience).
The sooner you start planning, saving, and looking for those coupons and special discounts, the easier it will be to save when you are shopping.
Remember Christmas is not all about spending, and there are many ways to keep things magical and have an amazing holiday season while staying on budget.
JOHN 1:5-11
