I’m not sure why I was surprised when I walked into Target in early November and saw Christmas decorations, but I was. It seems like they come out earlier and earlier every year.
With many families facing financial challenges this year, Christmas can be a little less than merry. But it doesn’t have to be.
You can have a wonderful Christmas even if you don’t have a lot of money, but not if you don’t plan. And, if you are a procrastinator like I was this year, there is still time to have a great Christmas and stay under budget.
Here are 5 simple ways to stay under budget this Christmas.
1. Make a Budget
This might seem silly, but if you don’t have a budget you definitely aren’t going to stay under it! Make a list of everyone you normally purchase gifts for and then go over your family budget and see how much money you have available for Christmas spending.
Figure out how much money you are able to spend for each person. If money is really tight, start crossing people off the list. 😉
2. Pay Cash for the Gifts
If you have the tendency to overspend on gifts, take out your allotted Christmas money in cash. When it runs out you are done spending.
If you like to shop online (as I do) consider getting a prepaid Visa or Mastercard for your shopping.
3. Get Creative
You don’t have to buy all your gifts at the store. Consider giving food gifts, homemade gifts, or even the gift of time. I know when I only had young kids the gift of babysitting was the best gift anyone could ever give me!
A $10 Starbucks gift card and a night of free babysitting would make a great gift for a family with young children!
You can also consider giving a family gift. Buying presents for individual family members can add up quickly (especially if you have a big family like mine) but you can buy a gift that the whole family will enjoy.
My family gift guide was published a few years ago, but it still has some great ideas.
4. Be a Smart Shopper
With so many amazing deal sites there is no reason to not be a savvy shopper this Christmas. Before I purchase anything online (except on Amazon) I look for a coupon code for my purchase and get cash back on everything I buy online.
5. Be Honest
I realize that there are families out there that are truly hurting. You may have lost your job, your car, or even your home. Christmas is not about impressing your friends and family with extravagant gifts.
If you cannot afford to buy gifts be honest about it. This year one of my relatives is on a strict and small budget. We all understand and would be happy to only be gift givers to this family.
No one wants you to go into debt, not be able to pay your power bill, or miss a meal because of a gift. Be honest about your situation and allow someone to bless your family this year.
Grab our Christmas Budget Template!
All you need is a gmail account to use this budget template I’ve made in google sheets. The template helps you track your budget and manage your gift giving this year.
It even auto calculates how much you have spent!
Make staying under budget simple with this spreadsheet.
Marni says
You always have the best tips!
I think I’m going to ask for babysitters and time. That, to me, is better than any gift someone could hand me. I’d rather be loved than “bought” any day.
We’re cutting our list short this year. Hoping we can save our house and if not, at least start onthr Dave Ramsey (because of you!) and pay off debts. That’d feel better than gifts!
Tonya says
I especially like #3 which I wrote about previously. SO many ways to save AND bless others at the same time. Giving the gift of yourself is the best of all. My favorite gifts from my children are those they have made me.
http://mrststhoughtsfromatitus2mom.blogspot.com/2010/09/93-days-until-christmas-setting-aside.html
Dawn says
I think the other thing to consider is who is giving you gifts. While we certainly shouldn’t give to receive, perhaps your giving is making someone else uncomfortable who can’t afford to reciprocate. Maybe this is the year to discuss gift giving with some of those people and get them scratched off your list. Maybe you can just agree to plan a dinner together or a game night at one of your houses. Shortening your list is a great way to trim some of the expenses.
TheHappyHousewife says
Great point Dawn!
Sandy says
Shopping through cash back websites is a great option for saving money when shopping online. Being a thrifty online buyer, I always (especially during holiday season) use cash back websites like ShopAtHome, AAfter Search and Ebates, and MrRebates.
DgsandBjsMom says
I would say we might spend $300 total on Christmas. We buy for our 2 kids and this year (Santa hit the Goodwill), one set of parents (the others are dead), one Aunt and Uncle (who are basically adopted grandparents) and one brother. Other than that we have one church Dirty Christmas party, which I bought a ladies gift for $3 at the Goodwill for.
cindy says
I thank you for the tips. You can also buy inexpensive Christmas tins and fill them with homemade cookies, fudge and candy. And, if you’re like me and a prolific photographer, you can buy inexpensive frames and print up photos that match the personality of the recipient. I did this one year and everyone loved their photos; even my one very fussy relative. I have kept the tins from Christmas gifts I’ve received and plan on recycling them filled to the brim with something to eat.
niki says
Great post!
I am checking you out from Frugal Friday and I am now your newest follower. Follow me back to Free 2 Be Frugal!
Rita says
My Target store had Christmas lights on the shelves a few weeks before Halloween!
The Prudent Homemaker says
Don’t forget garage sales and thrift stores!
One of my daugthers is getting a coat this Christmas, purcahsed at a garage sale for $5 this summer. Using scraps from previous projects, I am making her doll a matching coat, and I am making her a hat to go with it.
We make most of the gifts at out house for the holidays, but others come from garage sales and hand-me downs.
Gail says
my husband and i are in a stage of life right now where money isn’t an issue for us, we look at Christmas as a way to meet some of the needs of our family that are in “need.” We make sure to ask what our nephews need (winter coats, boots etc) or what they will need the upcoming year.
Greg Sterns says
Great thoughts. I just sent out an email to all the staff I work with with similar ideas. I think I’ll cut and paste these 5 and send them out as well. I’m a financial counselor and see people overspend at Christmas all the time. I have to admit, I’ve been one of those myself. Our family is looking to cut back spending and do something more meaningful. Check out the World Vision and Samaritans Purse websites for some great ideas for gifts both here and abroad. Also, look into Fair Trade products and help those who are struggling in other parts of the world by purchasing gifts from them. Check out The SEED catalog for some great opportunities.
Nancy M says
Great tips! I always plan on starting shopping early and then never do. I am the worst at procrastinating! If I can get presents for adults, that’s great, but if not, I make sure the kids get something.