Watch spending and still enjoy holidays
- Melinda Hill, OSU Extension Wayne County
- November 3, 2023
- 658
What a beautiful fall we’ve been blessed with as the brilliant colors usher in the cooler temperatures.
Looking at the calendar, I realize there are four weeks until Thanksgiving and nine weeks until Christmas. I’ve had several classes this fall where we’ve been talking about getting a handle on our money flow, really looking at the money in and out of our accounts and how intentional we are with our spending. The holidays tend to be a time when we give ourselves permission to spend in ways we might not otherwise do. Let’s look at some ways to save money and still enjoy the special events that are around the corner.
—The guideline for holiday spending is about 1.5% of your total income. For example, if you make $25,000, then the suggested budget would be about $375.
—Divide out the expenses by the number of paychecks you have before your celebration. If you are paid weekly, then take the 375 and divide by 13, about $29 a week. Don’t wait until the week before and try to squeeze everything into one pay period. Many of you may have already purchased items when they have been on sale.
—Make a complete list of additional expenses that might be incurred. Include everything from postage stamps or cost of mailing packages to wrapping paper, extra travel, clothing, decorations and additional food. Then decide how much to save between now and your celebration to make it easier on the budget. Or begin purchasing items each week to save on time and money.
—When shopping, use a list for each store and stick to the list for each week. It also might be helpful to put the limit to be spent. Following the example above, my limit would be $29. This goal keeps me focused on the priorities and allows the budget to stay balanced.
—If you are planning to travel, keep an eye out for flights or hotel specials to help stretch the dollars. Most often the closer to the holiday, the higher the cost. Look for special deals but be aware of the restrictions that are placed on baggage, ticket changes, et cetera. Again, begin today to put away a specific amount to pay for the trip as an additional expense on budget.
—Credit cards can offer additional savings and points; however, use with care. Make plans to pay them off monthly to keep from incurring additional debt. Interest rates add significant amounts to items if there is an ongoing balance. An $18 item placed on a credit card with a running balance for six months could end up costing between $40 and $50, depending on the balance and the interest rates.
—Really talk with the children about wishes and help them prioritize. Items look different in the pictures than they do in the store, and many times they are disappointed. Don’t forget books, activities and experiences may have longer memories than gifts. For example, at dinner this week, ask them, “What do you remember most about Christmas last year?”
—Consider what gift items might be made this year. If your closets are filled with family heirlooms or special items, might a piece of family history along with the story be a fitting gift? Gifting is a way of sharing special stories with family items. Maybe you have time to bake or talents to share with special gifts like sewing, quilting, card making or knitting. Maybe you could give the gift of time by giving coupons for a free movie night, a free dinner in January, a house or car cleaning.
Time has a way of slipping by very quickly, and the holidays will be here before we know it. Take time to plan so that however you choose to celebrate your holidays, overspending and debt won’t cloud your beginning of a new year.
Melinda Hill is an OSU Extension family and consumer sciences educator and may be reached at 330-264-8722 or hill.14@osu.edu.