The holidays are a magical time, full of celebrations, generosity, and togetherness. But they can also be one of the most expensive times of the year. Between gifts, travel, decorations, and festive gatherings, it’s easy for holiday spending to get out of hand. 

With a little financial planning for the holidays, you can enjoy all the magic of the season without the consequences in January! 

1. Start with a Realistic Holiday Budget

Before you tackle your holiday shopping, start by building a realistic holiday-spending budget that works for you. 

• Review your finances: Look at your income, monthly bills, and upcoming expenses. 
• Set your spending limit: Decide how much you can realistically spend without dipping into emergency savings or creating debt. 
• Break it down: Divide your total budget into categories: gifts, travel, food, decorations, and entertainment. 

Pro Tip: Fine-tune your budget by reviewing last year’s spending. Did you go overboard in certain areas? Adjust those numbers now to avoid making the same mistakes!

2. Use Digital Tools to Stay on Track

Digital banking tools make planning for the holidays easier than ever. Family First’s Online Banking platforms let you monitor spending in real time and even set alerts when you approach your limits. Download our Mobile App for added convenience so you can check your balances anytime, anywhere!

Digital Tools:

• Automated Savings: Automate small weekly transfers to your savings – it’s amazing how quickly funds add up! You can easily set up recurring transfers to your savings account within online banking. At Family First, we even offer Holiday Savings accounts designed to help you save for the holiday season.
• Budgeting Tools: Features like GoalBuilder and Money Management, available in Family First’s Online Banking platforms, can categorize expenses automatically so you can see exactly where your money goes. Create goals, watch expenses, and track your progress right from the mobile app!
• Saving Calculators: Family First offers several calculators to help you plan ahead. Our Mortgage Payoff Calculator can help you determine how extra payments can shorten your loan term, save you money in interest, and build equity in your home faster. Use the calculator to determine if an extra payment before the holidays would be beneficial to you! 

3. Money-Saving Tips for the Season

You don’t have to sacrifice joy to save money. Try these money-saving tips to stretch your budget while keeping the holiday spirit alive: 

• Shop early and compare prices: Don’t wait until the last minute! Sales and discounts pop up well before December. 
• Set gifting limits: Suggest spending caps or organize a Secret Santa exchange to make giving more manageable. 
• Get creative: Homemade gifts, baked treats, or photo albums can be more meaningful than expensive store-bought items. 
• Use rewards and loyalty points: Redeem what you’ve earned throughout the year for cash back or discounted purchases. 
• Plan potluck-style gatherings: Sharing food costs makes celebrations more affordable and more fun! 

4. Avoid Post-Holiday Buyers Remorse

Once the holidays wind down, the goal is to start the new year on solid ground. Avoid racking up credit card balances around the holidays to save yourself a headache later!

• Stick to your holiday budget and resist impulse purchases. 
• Use cash or your debit card to avoid racking up credit card debt. 
• If you do use credit, plan to pay it off quickly to avoid high interest charges. 
• After the holidays, review your spending to see what worked and what didn’t to make next year’s holiday budgeting even easier. 

The Bottom Line 

With a little planning, the holidays can be joyful and financially stress-free. By setting a realistic holiday budget, using saving tools, and following these money-saving tips, you can celebrate generously without overspending. 

And the best gift of all? Entering the new year with peace of mind and a healthy bank balance!