Keep the Cheer, Skip the Stress
The holiday season is filled with joy, but it can also bring a bit of financial strain. Between gifts, festive dinners, travel, and decorations, costs can add up quickly. To keep your holiday season fun (and your bank account happy), here are some practical budgeting tips for couples. With a little planning, you can enjoy the festivities without worrying about a post-holiday financial hangover!
Tip 1: Set a Holiday Spending Limit Together
Before making any holiday purchases, sit down together to decide on an overall budget. Consider what you’re comfortable spending across all holiday categories—gifts, decorations, travel, food, and festivities.
How to Do It: Look at your current finances and decide what feels reasonable. Set a cap, then list out your categories to see how much to allocate to each.
Bonus Tip: Add a “just in case” amount of around 5-10% of your budget for any surprise expenses that may come up.
Tip 2: Make a Gift List with Spending Limits
List out everyone you want to buy for and set a maximum amount for each person. This helps you stay within budget while still getting something meaningful for each recipient.
How to Do It: Decide on limits for family, friends, coworkers, and each other, then track your spending as you go to stay on track. Consider setting “experience-based” or “thoughtful” gift themes that allow you to keep costs reasonable while adding personal touches.
Budget-Friendly Ideas: Try DIY gifts, experience-based gifts like a homemade coupon book, or setting up a holiday gift exchange to keep things simple.
Tip 3: Share Costs on Holiday Hosting and Festivities
If you’re hosting a holiday event, consider sharing the cost with friends or family. Potluck dinners, for example, can be festive and delicious without putting the burden on one couple’s budget.
How to Do It: If hosting, make a list of items you’d love for people to bring—appetizers, drinks, desserts—and assign categories when guests ask what they can bring. You get a fuller table, less cost, and a whole lot less stress.
Pro Tip: If you’re invited to multiple events, budget ahead of time for any potluck contributions or “Secret Santa” gift exchanges.
Tip 4: Plan Your Holiday Travel Early
Traveling during the holidays can get pricey, especially last-minute. To avoid overpaying, book flights or accommodations as early as possible. If travel isn’t set in stone, consider alternatives like driving or using rewards points to keep costs down.
How to Do It: Use price-comparison tools and set alerts for deals. If traveling by car, make a budget for fuel and meals along the way. Another option? Stay with family or friends instead of booking a hotel to save on lodging.
Pro Tip: Look for package deals or bundle options on flights and hotels to save more.
Tip 5: Keep Track of Expenses Together
Set up a shared holiday budget tracker to log every purchase, no matter how small. This helps keep both partners on the same page and prevents surprise spending that could add up quickly.
How to Do It: Use a shared app or a simple spreadsheet to record each expense. Make it a habit to check in weekly and adjust the budget if needed.
Pro Tip: If you have a separate holiday account or prepaid card, stick to it for holiday expenses. This way, you won’t accidentally dip into funds earmarked for other goals.
Tip 6: Make Holiday Goals for the Future
Once the season is over, reflect on what worked (and what didn’t!) with your holiday budget. Use this insight to plan for next year, setting aside a small amount each month to get a head start on savings.
How to Do It: Start a “Holiday Fund” and automatically transfer a set amount each month. By next year, you’ll have a solid base without the holiday-season scramble.
The holidays are a time to celebrate, and with a little planning, they don’t have to lead to financial stress. By setting limits, tracking spending, and being open about priorities, you can make this holiday season one of joy, togetherness, and smart financial choices. Here’s to a happy holiday season and a debt-free new year!