Tips for Managing your Holiday Spending

The holiday season is in high gear with eagerly anticipated family celebrations just around the corner. Christmas gift buying, entertainment expenses and the cost of travel can add up and holiday spending can easily get out of control.

Before you begin your Christmas shopping consider these tips to manage your holiday spending.

Create a realistic budget

The simplest and most efficient way to keep your holiday spending under control is to create a budget. Start by determining the total amount you can afford to spend - then set a hard spending limit to ensure you stay on track. There are many tools available to help you generate a budget. You can use a spreadsheet, or go high-tech and use one of the many budgeting apps available on your phone.

Look at all your holiday expenses

Gift buying is a major expense during the Christmas season but it is not the only expense you need to keep track of. Take into account all of your holiday spending needs when creating your budget - such as the cost of decorations, food and even travel expenses. Having an overview of your total expenditure will help you stay on track and keep your spending within your budget.

Set a per-person spending limit

To keep your spending under control set a per-person spending limit for everyone on your list. If your budget is tight consider talking to your family members to set spending limits for each person. Also, pooling your money with others to buy a larger group gift may be an alternative cost-effective option this holiday season.

Shop with a list

To keep impulse buying at bay make a separate list for each holiday spending category and carry each list with you when you shop. Take the time to research gift prices and shop at stores with the lowest prices. A detailed shopping list will keep your shopping organized and on budget.

Buy with a UCU Collabria Rewards Credit Card

Shopping with a credit card gives you more security from potential fraud than using a debit card or paying with cash. And if you have a UCU Collabria Rewards Credit Card you can earn reward points on everyday purchases – turning each dollar spent into a reward point. UCU Collabria Centra Gold Mastercard is a great credit card option offering both a low rate and reward points. You can learn more about UCU Collabria credit cards here.

Track your holiday spending

When you start your holiday shopping don’t forget to keep track of all your expenses. Tracking your spending is the best way to ensure you stick to your budget. Each time you make a purchase, subtract the amount from your holiday budget total. This running calculation will let you know if your spending is within your budget – making it easier to make adjustments between your budget categories if needed.

Plan for next year’s holiday spending

Set a plan for next year’s holiday spending to ensure you stay on track and not become overwhelmed by the high cost of the holidays. Build better year-round spending habits by setting aside monthly savings earmarked specifically for holiday spending. Consider opening a ucublu higher interest savings account where you can earn more interest while saving for next year’s holidays.

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