Tips to take control of holiday budgets

Chronicle Media
Illinois 112515 holiday budgeting PHOTO

One way to save money at holiday time is to take an inventory of decorations and supplies before going out to buy new ones and make a gift list. (Photo Shiny Bright)

It is time to ho-ho-hold on to your wallets as the holiday spending frenzy begins.

Christmas decorations have been in some stores since Independence Day, and everywhere you look, it is an open invitation to spend money to celebrate Happy Hallowgiving Hanukwamas New Year.

No matter what holidays you choose to celebrate, it can get expensive.

Pam Atkinson, University of Illinois Extension consumer economic educator, asks, “Are you ready for the assault on your wallet?”

Here are 10-holiday planning tips to have a wonderful time without breaking the bank.

  1. Check your current inventory of decorations and supplies. What is left over from last year that can be reused-maybe with a little alteration? Check lights, and décor with moving parts to see if replacements are needed. Make a list of what is needed and watch for those items to go on sale.
  2. Create a decorating plan. We recently moved into a new home and used old decorations in different rooms. It left us with less to buy new.
  3. Think about family traditions and if they should be modified or let go. We buy a new ornament for the tree that reflects the past year and make sure it is dated. As we started running out of room on the tree, I have started giving the kids their old ornaments from the tree to decorate their own.
  4. Change gift-giving habits. Is it getting difficult to decide what to buy for the person that has everything? Go for an outing after the holidays instead or give a donation to their favorite charity.
  5. Look at the meals. In some families, this can be the biggest expense after gifts. Don’t feel you have to do all the work or shoulder all the cost. You can assign dishes for others to bring or let them choose their favorites. Use online tools like http://www.jooners.com to help organize and manage the events.
  6. Create and stick to a spending plan for each holiday. If you plan on using credit cards to pay for purchases, make sure to create the repayment schedule and account for the extra interest in your spending plan.
  7. If you find a gift on sale, pocket the savings. Don’t feel you must spend the whole budgeted amount. Studies show that people who focus on the dollar amount of the gift(s) end up paying more, sometimes a lot more, than buying the planned gift.
  8. Always have a list that includes particular gift ideas before going shopping. That makes it easier to compare prices and avoid wandering the stores looking for the perfect give and often overspending.
  9. Invest some of your time in online research. Look for the stores with the best prices, coupons, and free shipping. Armed with knowledge, you will know if the sale in the store is really that good a deal.
  10. Make sure to account for all you are spending. Baking cookies, having parties or cooking a big dinner, be sure to add to your grocery budget. Attending functions? Don’t forget the new outfit, blouse or jewelry.  Decorating your house so the whole neighborhood notices? Be sure to increase spending for your electric bill.

Finally, after planning all your holiday needs, spread out the expense if you do not have a savings account already set up for these extras.

“My grandmother began planning her holiday meals and cookie baking around Labor Day, figuring out exactly what extra foods and staples she would need,” said Atkinson, “and added them a little at a time to her grocery list. She caught all the sales on butter, flour and sugar.”

She planned meals around what was in the freezer that needed to be used up to accommodate the turkeys and other foods that would be stored there. She lived in a small house, lived frugally, but made for the best memories because she planned ahead. You can too.

There is one more thing you need to do according to Atkinson that will help with next year’s holidays —  save all your receipts and total up what you spent. Divide that total by the number of paychecks until next years’ holiday season.

That is how much money you will need to save each paycheck to avoid the big adjustment in your budgets. It will ease your stress tremendously.


Contact: Pam Atkinson, Extension unit educator, Consumer Economics-Livingston, McLean and Woodford Unit  (309) 663-8306, pratkins@illinois.edu.

— Time to take control of holiday budgets with these tips —