How to Plan and Save for Christmas
So, as it turns out, Christmas is on December 25th every single year! We all know it. And yet, many of us find ourselves financially stressed and strapped when the Christmas season comes around. For so many people, the most wonderful time of the year ends up being a little bittersweet. We’re all full of cheer and excited to give gifts…except many of us also end the season with more credit card debt than we’d like to admit.
But you can skip the money stress and anxiety and free yourself up to fully enjoy Christmas! It just takes a little (stress-free) advanced planning. So let’s jump into what that looks like.
Christmas Savings Plan
If you start in January and save a little money each month, you’ll find that by the time the Christmas season arrives, you have the money you need! And by saving a little each month, it feels like so much less of a burden. Instead, if you’re like me, when you go to count up your Christmas cash during the holiday season, it almost feels like free money. Since my husband and I squirrel away a little at a time, we barely have to notice it coming out of our pockets from month to month. And then we feel like we hit the jackpot come November and December 🤑.
Everybody’s Christmas spending is unique, and the amount you save each month just depends on what your overall spending looks like. Start with that big picture number and work backwards to figure out how much to save each month:
Total Christmas spending ÷ 12 months = Monthly savings amount
So, if you anticipate spending about $1,000 for Christmas next year…
$1,000 ÷ 12 months = $83.33 (which I would just round to $85 because it’s an easier number to deal with)
How to Figure Out Your Total Christmas Spending Amount
In order to work backwards and figure out your monthly amount, it’s important to start with a realistic total spending amount that you’re aiming for. To do this, look at your spending from the previous Christmas. If you didn’t save receipts for things, look at your bank and credit card statements.
Remember to include not just the money you spent on gifts, but any Christmas-related spending that you did or plan to do in the future. What might some of those expenses be?
Let’s list them out, so you don’t overlook anything 😉.
Christmas Expenses (Besides Gifts for Family & Friends)
Donations: If you’re going to give to a certain organization at Christmas, bless someone less fortunate with a gift, or donate food to a food pantry, keep this in mind as you determine your total Christmas spending.
Decorations: I’m obsessed with Christmas, and I have to fight the urge not to keep buying more decorations each year. If you can relate or if you are starting fresh with your decorations, be sure to account for how much you think you’ll spend.
Travel: If you’re driving to visit family, you should account for gas, tolls, and money for food stops along the way. If you’re flying, you want to account for airfare.
Food: Will you be hosting or attending any Christmas celebrations that involve food? This can include a holiday potluck at work, a family Christmas brunch or dinner, a church Christmas party...things like that. How much do you anticipate spending on food specifically for Christmas festivities? Factor that into your total.
Christmas Parties: If you’re throwing a Christmas shindig, you may have to account for things like party decorations, items for games, game prizes, etc. Even if you only plan to be an attendee at a party, you want to factor in things like the gift you might have to get for Secret Santa or the White Elephant/Yankee Swap game.
Christmas Attire: Going to an Ugly Christmas sweater party? Or maybe you like getting matching Christmas pajamas for the family. It could be that you have a specific look in mind for the family Christmas card photos next year. Or maybe your kids are in the Christmas choir or Nativity play, and you need to buy them specific outfits or costumes. If you plan on spending money for clothes that are specifically for Christmas activities, include this in your total spending number.
Christmas Greeting Cards: There’s the cost of regular greeting cards to consider here. But if you love a good family Christmas photo card, don’t forget to also include costs like professional photos and ordering greeting cards. Either route you go, remember to also include the cost of postage to mail them out.
Appreciation Gifts: Don’t forget about the people you want to give to in order to express your gratitude! Maybe that’s your mailperson. Or if you have kids, it could be a whole slew of people...their teachers, their bus driver, their babysitter. Count these things in your Christmas spending.
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One Thing to Note…
The great thing about saving a little over time is that it still works if you’re someone who likes to start your shopping before November/December. Even if you start shopping in July, by that point, you’ll have 7 months-worth of Christmas savings. That should be enough to buy a few things here and there, as you continue to put away money each month for the rest of the year.
Conclusion
Christmas doesn’t have to be financially stressful or burdensome. With the right (simple) planning, you can save and get ahead of the game for next Christmas!
Determine your total anticipated spending amount. Don’t forget to keep ALL Christmas-related expenses in mind, not just the usual gifts. Then, figure out how much to put aside each month, and enjoy a financially stress-free Christmas!
Are there any other Christmas-related expenses that you experience during the holiday season? Share in the comments below!
