COLUMN: Ask the Money Lady – Budgeting over Christmas

I always find it difficult over the holidays to keep the costs down. Have you got any tips for making it through Christmas without spending too much? Thanks, Lilly

Great question Lilly! December is the “eat and spend too much” month and January is the “go on a diet and try to pay off your debt” month.

Why do we do this to ourselves every year – even though we know we shouldn’t overindulge? Well, overeating and preparing tasty foods is a symbolic social activity and an integral part of many cultures at Christmas. Plus, spending more during December always tends to happen due to more parties, more social events and more entertaining. It is not unusual for most Canadians to feel financially anxious during the months of December and January.

Of course, the obvious solution is to stick to a budget. But I must say, that for those of you that generally stick to a savings routine all year and also try to eat right – I don’t think there’s too much harm in you letting lose a little at the end of the year. Many people constantly deny themselves small simple pleasures and feel great shame about spending money on themselves or others. Buying too much or eating too much over the holidays are both fixable by getting back into your routine once the New Year comes along. But for those of you still stressing, here are some money saving tips to keep in mind this Christmas season!

It is best to make a list, determine a budget for each gift and stick to it. If you can’t find a gift for your price point – then opt for gift cards so that they can be used after Christmas in all the retail sales events, in stores or on-line. Why not consider “teaming-up” and go in on gifts with others to limit costs and maintain your budget. Set expectations with family so that everyone plans to spend specific amounts on gift giving. You could also choose to have an adult name draw or Secret Santa. Why not consider buying everything on-line this year, especially through your local businesses who really need our support. Take advantage of Black-Friday sales and have it delivered right to your home – or better yet to the home of the person you’re buying for. It’s like your own little valet service. Also, don’t forget the Dollar Stores, they are great for Christmas stocking stuffers, wrappings, cards, and decorations. Who says you have to spend a lot to get into the Holiday Spirit!

Ways to reduce the cost on holiday meals could be to delegate the dishes or opt for a potluck dinner. Everyone should have a specialty that they could bring if asked and it is up to you as the Hostess to coordinate the meal and tell people what to bring. Don’t forget to tell your guests to also bring their own alcohol. If you are hosting an event at your home, you still shouldn’t be expected to foot the bill for all the drinks. Instead have a Christmas Punch and let everyone BTOB.

It really is not hard to be gracious this season. A thoughtful Christmas message in a hand-made card, or a letter of devotion and love, can be cherished more than any store-bought item. Be kind to one another, watch your manners, forget the grudges and enjoy your family, (or at least pretend to). Remember, happiness isn’t defined by how much you spend, it is what you do, how much you love, how caring and supportive you are, and above all your true compassion for your family and others. Merry Christmas to everyone!

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Christine Ibbotson is a Canadian finance writer, radio host & YouTuber. For more advice check out her YouTube channel: ASK THE MONEY LADY – Your Canadian Finance Coach.