Tips for Managing your Holiday Spending

 

With the holiday season gearing up and eagerly anticipated family celebrations just around the corner, it's easy for expenses related to Christmas gift buying, entertainment, and travel to get out of hand. Before you begin your Christmas shopping, consider these valuable tips to manage your holiday spending wisely.

Create a realistic budget

The simplest and most efficient way to keep your holiday spending under control is to create a budget. Determine the total amount you can afford to spend and set a hard spending limit to stay on track. Utilize budgeting tools such as spreadsheets or budgeting apps to help you manage your finances effectively.

Consider all holiday expenses

Gift buying is a major expense, but don't forget to factor in other costs such as decorations, food, and travel expenses when creating your budget. Having an overview of your total holiday expenditure will help you stay on track and within your budget.

Set a per-person spending limit

To keep your spending within budget, establish a per-person spending limit for everyone on your list. If your budget is tight, discuss setting spending limits with your family members. Alternatively, consider pooling money with others to buy larger group gifts as a cost-effective option.

Shop with a list

Create a separate list for each holiday spending category and carry these lists when you shop. Take the time to research gift prices and shop at stores with the best deals. A detailed shopping list will keep your shopping organized and within budget.

Use a credit card that earns rewards points on selected purchases

Pay for purchases with a credit card for added security, purchase protection and extended warranty on eligible purchases. With a UCU Collabria Cashback Mastercard®, you can earn reward points on everyday purchases, maximizing your spending benefits.

Track your holiday spending

Keep a record of all your expenses to ensure you adhere to your budget. Subtract each purchase from your holiday budget total, allowing you to make necessary adjustments between budget categories if needed.

Plan for next year’s holiday spending

Prepare for next year's holiday season by building better year-round spending habits. Set aside monthly savings specifically for holiday spending and consider opening a ucublu High Interest Virtual Savings Account to earn more interest while saving for future holidays.