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It’s no secret that the Holiday season is full of joy – and full of costly expenditures. Use these holiday budgeting tips to make sure you’re not overextending yourself this Christmas. It can be absolutely mind-boggling to comprehend how much Americans spend on the holidays, but as long as you budget appropriately, you and your bank account will survive intact!

2016 Holiday Spending Statistics

From VISA

• 2016 national average spending increased 4.8% compared to 2015 spending
• Pennsylvania increased higher than the national average, with over 6% spending growth
• 46% of holiday shopping was done in November
• 1% of holiday shopping was done in the two weeks prior to Christmas

From NRF (National Retail Association)

• Holiday retail sales totaled $658.3 billion dollars in 2016
• 2015 spending per person topped $800

Common Holiday Expenses

Before you can budget for the Holidays, you have to know what categories to budget for. There is an incredible amount of expenses to worry about during the holiday season, which extend far beyond presents under the tree. Here are a few of the most common, but overlooked, expenses you should consider when planning your budget.

• Do you need to buy a new outfit for the party? Bring a bottle of wine? Make extra food? Decorate? Parties can add up.
• The holidays are all about the feasts. Hosting a dinner means purchasing large quantities of food. This will be sure to go above and beyond your normal grocery bill.
• This isn’t necessarily overlooked, but often underestimated. Make sure you’re planning for every gift you plan to give, whether it’s for a family member, a coworker, or even your child’s teacher. This should include a budget for cards, wrapping paper, shipping costs, etc.
• Are you visiting family? Buying a plane ticket? Paying for gas? Travel costs notoriously rise during the months of November and December.
• Tis’ the season for giving. Charity organizations know that this is one of the best times of the year to ask for donations. Pre-plan how much you’re going to give via tithing, donations, and/or volunteer work. If you can’t afford to donate money, consider donating your time instead.

5 Holiday Budgeting Tips to Save More Money

Luckily there are quite a few simple ways to decrease your spending and also prepare for the spending you know will happen anyway. Here are 5 of our favorite Christmas money saving tips anyone can use.

1. Create a physical budget spreadsheet to reference.

Everything comes back to creating a workable budget. You will use this spreadsheet to determine how much money you can comfortably spend, who you’re spending it on, what you’re spending it on, and holding yourself accountable for those expenses.

Try to save in advance throughout the year so you don’t have to pull funds from your checking account. You can do this through automatic transfers to a specialized savings account every month. Then use the amount in that saving account to determine how much you can spend on the holidays this year.

2. Shop online.

Shopping online before making any purchases allows you to research possible gift ideas and price compare them without visiting every store in your town. If you want to purchase a gift in-store, at least you’ll know which store has the best price.

Shopping online can also put extra money back into your pocket through cash rebate programs. Many retailers encourage online shopping by offering certain percentages of cash back on a purchase. It doesn’t cost anything to enroll in a program. Here are a few popular sites that specialize in offering shoppers cash back.

Ebates.com

TopCashBack.com

BeFrugal.com

CouponCactus.com

For example, if a site offers 9% cash back on your purchase, and you spend $100 on that retailer’s website, you’ll receive $9 cash from that purchase.

3. Avoid the high-interest rates.

If you were caught by surprise this holiday season, you may be tempted to put your purchases on a credit card. Even if you failed to budget, it isn’t the best idea to use a high-interest rate credit card to carry the weight. The longer you take to pay those purchases off, the more money you’ll owe. You don’t want to start the new year with a large amount of credit card debt to your name!

If you didn’t budget accordingly, pay for items in cash or pull the funds directly out of your checking account. This will force you to spend less money than you may be tempted to with a high-limit credit card.

Another option is to use a personal loan instead of a credit card, since they often carry lower interest rates.

4. Don’t compare your spending with others.

Only you know what you can afford to spend. The holidays are not worth going into debt over. It’s okay if you decide to give a homemade candle, even if other family members are giving larger ticket items. Don’t feel like you have to keep up with the Jones when it comes to Christmas shopping! Once you stop comparing your purchases to what you think you should be doing, and instead pay attention to your own budget, your wallet will thank you.

5. Look for deals and coupons.

One of the best ways to stick to your budget and even spend less than expected is to find some killer deals. There are always sales and specials going on in November and December at retailers. The trick is to find them.

If you know there’s a specific brand, product, or store you’ll be shopping at – sign up for their emails. You may get special coupon codes for email subscribers, and will be notified if any sales are happening.

Also download apps that are dedicated to curating all of the sales happening at retailers. A popular, well-rated app is RetailMeNot. If you’re about to make a purchase, check the app to see if there’s a coupon code you can apply to the order!

It’s never too early to plan for the 2018 Holidays.

Even if you don’t have a dedicated holiday savings account for this year, it’s not too early to set one up for next year. Base your savings goal on the amount you spend in 2017, divide the number by 12, and set up an automatic monthly transfer from your main checking account into your special savings account.

You can do this easily with AmeriChoice’s Holiday Club account. The Holiday Club offers higher returns than a basic savings account, and will deposit the saved funds once per year into your checking account in preparation for the holidays. Learn more and open a Holiday Club account here!