By Charlestien Harris, Retired Financial Coach Southern Bancorp
Ahh, the holidays are coming, and I can’t wait to celebrate! But along with the festivities comes the temptation to overspend. Overspending during the holidays is a common habit, but there are simple steps you can take to avoid it.
Charlestien Harris
According to an Experian survey, more than half of consumers (55 percent) will be tempted to overspend during the holidays. Fortunately, this habit can be curbed with a few practical strategies and a little self-discipline.
Below are some tips to help you avoid overspending and keep your holiday cheer intact.
1. Avoid the two “biggies”: food and gifts.
Food and gifts are the main expenses during the holidays, but with a plan, you can be more frugal. Overcooking is another budget buster – try to gauge how many people will attend your gathering and adjust accordingly.
2. Make a list and compare prices.
This works for both food and gifts. Santa has a list, and so should you! Start by creating a holiday budget and gift list, then track every purchase. Comparison shopping, using unused gift cards, coupons, and sale circulars can make a big difference.
3. Communicate with family and friends about expectations.
Discuss holiday plans and expectations early. Potluck meals can spread costs, and pulling names for gifts is another great way to save. Most people simply want to spend quality time together – not break the bank to impress others.
4. Use cash or a debit card.
Paying with cash or debit helps you stay within your means and avoid high-interest credit card debt. Cash limits spending to what you have on hand, and debit cards draw directly from your account, giving you better control.
5. Give meaningful, non-material gifts.
Offer “gifts of time,” such as babysitting, a home-cooked meal, or help with a task. Experiences like a movie night or a day at the park create lasting memories. DIY gifts – baked goods, knitted items, photo albums – can also be thoughtful and budget-friendly.
6. Set a gift price limit.
Suggest a Secret Santa or gift exchange with a spending cap for large groups. This reduces costs and curbs impulse buying. Stick to your list to avoid unnecessary purchases driven by marketing or stress.
7. Combine online orders.
Shipping fees can quickly eat into your budget. Many stores offer free shipping with a minimum purchase, so coordinate your gift list to take advantage. Consider ship-to-store options to save even more – and avoid porch pirates!
By following these tips, you’ll see a real difference in your holiday spending. Small changes can help you stay within your budget and avoid debt that lingers long after the holidays.
For more information on this and other financial topics, write to me at P.O. Box 1825, Clarksdale, MS, or email me at charlestienharris77@gmail.com.
Until next week – stay financially fit!
Charlestien Harris is our financial contributor, a retired financial expert with Southern Bancorp Community Partners.
