We all know the holidays can be stressful particularly because of the amount of money spent on gifts, decorations, cards, special events, food, travel… the list goes on!
If you want to reduce your holiday stress and would rather avoid paying for the 2015 holiday season until the middle of next summer, Richland County UW-Extension Family Living Agent, Chelsea Wunnicke, is offering a free class at 6:00 p.m. on December 3rd at the Brewer Public Library in Richland Center on Holiday Spending and Tax Time Planning.
Here are some tips to consider:
- First, make a list of all your holiday spending categories – gifts, food, travel, etc. – and estimate those expenses. Decide how much money will be available for holiday spending. Next to each category, decide on a spending limit.
- Make a list of gift recipients – relatives and close friends, as well as gifts you customarily give teachers, neighbors or others. Include year-end tips for newspaper carriers, babysitters, house cleaners, hairdressers and other service providers. If you frequently make charitable donations at the end of the year, include those too. Add up gift spending. You can simplify your holiday budget by assigning a dollar amount, rather than a certain gift to each recipient.
- Shop with a list to resist impulse buying. Be sure to shop with your list and consider paying in cash. Using cash can help you avoid splurges, as well as costly fees or interest from debit cards, credit cards, layaway, or store financing. If you plan to do your holiday shopping with a credit card, consider using only one credit card and charging only what you can afford to pay back in 1 or 2 billing cycles. Check your credit and debit card statements to ensure they accurately reflect your purchases. However you pay, keeping a list to track purchases as you go can help you stay within your budget.
- Shop for short periods of time. All-day marathons can wear you down and may lead to over-spending or poor decisions. When shopping in stores, if you are trying to get a certain advertised price, bring the flier with you to compare to the price on the shelf and check your receipt to ensure the correct price was charged. Know the return policies and keep the receipt. There are other considerations for online shopping. To get deals you can follow a retailer on social media or sign up for their newsletters. There are several apps and websites that can help alert you to lower prices and provide coupons and rebates. When shopping online, remember to allocate time for shipping, understand return policies, and don’t forget to include shipping charges in your budget. Again, checking your bank statements regularly is the best way to catch fraud or hacking early so that you are not overcharged.
When you work from a budget, your holidays can be far more carefree. Ultimately, you will be able to focus on joy and fun at the holidays, rather than worrying about the bills that tumble in afterwards when you overspend. Sticking to your holiday budget will ensure you can give gifts and enjoy all aspects of the holidays without depleting your emergency funds or going into credit card debt.
To get a Holiday Budget Worksheet, contact Richland County UW-Extension at 608-647-6148 or email: chelsea.wunnicke@wisc.edu
