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It’s time to say “Ho, ho, ho!” to the winter holidays without putting a “ho, ho, hole” in your wallet. With so many expenses bundled up at the end of the year, November and December can be a stressful time. If you’re trying to spread joy without spreading your finances too thin, you may need to spend some time budgeting for the holidays.

Holiday budgeting isn’t as hard as you might think, and sticking to your budget is a lot easier when you’ve laid out your plans clearly. 

Follow our tips below to master your holiday budget—that way, you can give yourself the gift of stress-free finances to end the year right.

1. Look at last year’s holiday spending

Get ready to sleigh your budget by looking at last year’s financial successes and places for improvement. Pull up your bank and credit card statements—or any receipts you saved—from last holiday shopping season. 

Ask yourself some of the following questions:

• Where was I able to save money?
• What did I buy that feels wasteful now?
• What did I spend money on that was most valuable?

Ultimately, taking a look at your previous spending should help you decide on what you value most in the holiday season: family, travel, meals, gifts, traditions or something else entirely. Take these values forward into your budgeting so you know what to prioritize.

2. Set a realistic limit

You snow the drill: a budget only works if we put a cap on it. Everyone’s circumstances are different, so you’ll want to take a look at your income, savings and essential expenses to come up with a number that’s right for you. 

No matter what, make sure your limit is realistic. Writing down an absurdly low number may feel like progress, but you could be disappointed if you end up overspending. On the other hand, shooting too high may lead to missed opportunities for saving. 

The average American household spends almost $1,500 on purchases related to the winter holidays, but your budget may be more or less depending on the size of your family and your financial situation. 

Here’s the best gut check for your limit: imagine the number you chose disappeared from your bank account right now. Would you still be on solid financial footing? If not, you may be cutting into expenses that are more essential than your holiday budget.

3. Start a conversation

Before you start to “treat yo elf,” remember everyone else you need to include in your holiday plans. Whether you’re single, married or have kids, a holiday budget usually involves expenses that extend beyond yourself.

When you’re looking to spend less or spend wisely, it’s best to talk with your friends and family to make sure you know what’s important about the holidays for those you love. During those conversations, you’ll also want to make sure you share your own hopes for the holidays. 

Having conversations about money can be tough in any case, but even more so when the holidays are involved. We’ve got conversation starters to help you discuss holiday spending with your family, partner or kids. 

4. Lay out all of your expenses

When you think about your holiday spending, you may fir-get that it involves a lot more than just gifts. Finding memorable gifts for everyone in your life may occupy your holiday attention, but your budget needs a few more line items.

Consider some of these other expenses that may need to be accounted for:

• Groceries and restaurants
• Car or air travel
• Decorations
• Clothes
• Cards or stamps
• Wrapping paper or gift bags

Making sure that your budget encompasses all of your expenses is a great way to avoid overspending. 

A good guideline for budgeting is the 50/30/20 rule: Aim to spend 50 percent of your income on needs, 30 percent of your income on wants and 20 percent of your income on savings or debt payments. Since holiday budgeting likely falls under the “wants” category, you’ll want to calculate with 30 percent of your income—but be sure to factor in non-holiday wants as well.

5. Try out envelope budgeting

If you think envelopes are great for holiday cards, yule love hearing how they can make your budget even better. Envelope budgeting is the process of determining a dollar amount for each expense and setting that money aside so that you don’t use it for anything else. 

If you’re using cash, you can use actual envelopes—but there are alternatives for online money management, too. For example, many banks enable you to create savings buckets, so you can split up your account into different categories. By creating a bucket for each holiday expense, you can get a sense of how much you still need to save, and you can keep track of your spending throughout the season.

6. Make a list and check it twice

If the holidays have you feeling Santa-mental, it may be time to plan which gifts to get—otherwise people might see you as a rebel without a Claus. Although it’s tempting to get an expensive gift for everyone on your list, you’ll want to prioritize spending on the most important people in your life.

Keeping your overall spending limit in mind, list out the people you want to buy gifts for, then write down their likes or wish list to come up with a spending target. If you need help keeping track, we’ve got a great resource for making a gift list.

7. Give your time 

While gifts often feel like the only way to celebrate the holidays, those closest to us often prefer our presence to our presents. During a busy time of the year, taking a moment to get together with friends or family is often the best gift of all. 

Here are some ideas for gifting your time:

• Set up a potluck
• Host a board game or trivia party
• Help out with decorating
• Pitch in with winter chores
• Take your nieces or nephews for a day trip
• Schedule a family video chat

Whatever your family or friends enjoy doing together, make it a point to set aside time to make it happen—the memories will likely last longer than any gift.

8. Share some creative coupons

If expensive gifts are your go-to, you may need to act more like a Christmas tree and branch out. Personalized gift coupons are one of the oldest tricks in the book, but they’ve stuck around for a simple reason: they’re actually amazing. 

With one of your gift coupons, your partner can redeem a cup of hot chocolate with marshmallows on a chilly evening or your kids can cash in for a few extra minutes before bedtime. Of course, you may also have some great ideas of your own for how to fill out a super special holiday coupon.

Use one of our pre-made coupons or fill out your own to share with your friends, family or children.

9. Start new traditions

If your holiday routine is in a rut, it may be time to spruce things up. The main point of your holiday season may currently be gift-giving, but it doesn’t have to stay that way. Often the best parts of the holidays are the little traditions that don’t cost much or anything at all. 

If your holiday crew has decided to scale down the presents, try some of the following alternatives for low-cost and memorable traditions:

• Caroling door to door
• Visiting well-decorated neighborhoods
• Baking cookies and other treats
• Playing board games
• Volunteering at a local charity
• Sharing family stories
• Creating holiday crafts
• Watching classic holiday movies

Whatever you choose to do, do it with the people you love. Most of our lasting memories of the holidays revolve around people rather than presents, so starting a new tradition is a great way to keep your spending under budget while increasing your joy.

10. Create personalized gifts

It’s simple Claus and effect: giving personalized gifts makes the recipient feel special. Taking a moment to think about what someone really needs shows care and consideration that outweighs any monetary value. 

Some of the best gifts are inexpensive or free—but well-thought-out. Personalized gifts can be DIY or purchased. Maybe you provide cooking lessons for a family member you know has been hoping to improve their culinary skills. Perhaps you craft fabric ornaments for all your coworkers. Or you may simply write a thoughtful letter to a friend you know needs to hear from you. 

11. Watch out for “buy now, pay later”

The sticker shock on popular holiday gifts often has us all muttering, “Say it ain’t snow.” In the past few years, many companies have tried to hide the true cost of larger purchases with “buy now, pay later” offers. Instead of seeing the full cost, you’ll see a monthly payment and a term. 

While the short-term cost may seem appealing, this long-term contract for holiday spending can throw a wrench in your budget. If you’re going to end up paying $50 each month for two years to cover the cost of a present, for example, your budget may not actually stretch for the entire $1,200 cost. 

A good motto to stick by during the holiday shopping season is this: if you can’t afford it now, you can’t afford it (yet). Your budget may change down the line, but it’s best to stay within your current means when making holiday purchases.

12. Be mindful of credit card spending

Credit cards are wonderful financial resources, but they can get you in a fa-la-la-lot of trouble if you don’t monitor your spending carefully. While it’s tempting to spend up to your card’s limit, a good approach is to set your own spending limit that matches your budget. 

Paying off your full credit card balance every month is an excellent habit that can boost your credit score, and you don’t want to make an exception for the holidays. Remember the budget you set for the holidays, and don’t let your credit card interfere with your financial goals. If it helps you keep your seasonal spending in check, consider sticking with your debit card or cash during the holidays.

If you’re using a credit card during the holidays or any time, you’ll want to make sure to keep a close eye on your credit report. Errors and inaccuracies with your personal information, balances or payment history can happen, and unless you file a dispute, your score may drop unnecessarily as a result. If you’re having trouble understanding the information on your credit report or need help fixing your score, a credit repair company could be the support you need. 

With a solid plan in place for your holiday budget, you’ll be able to stress less about finances and focus on what matters most this time of year: being with the people you love.

Reviewed by Anthony Moore, Credit Consultant and Trainer at CreditRepair.com.

Anthony Moore started working for CreditRepair.com November of 2016. Anthony Moore started as a credit advisor, and quickly advanced to to helping members get caught up on their overdue payments. In addition to reviewing and writing content for CreditRepair.com, Anthony assists other credit advisors with approvals and supports the credit repair process.

Note: The information provided on CreditRepair.com does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only.

The post 12 holiday budgeting tips to save money and stay merry appeared first on CreditRepair.com.

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With the holiday season around the corner, there are many holiday spending statistics from previous years that may be useful to know. For example, knowing what other people are shopping for can help you choose gifts that won’t run out of stock. And gauging how much other shoppers are spending can help you estimate how much you may want to spend. 

For those who don’t just give money for the holidays (maybe you give moments instead), these 25 holiday spending statistics can give you a look into what you can expect while holiday shopping this year.

Holiday sales statistics

Knowing what gifts people are spending their money on can help you make a decision when doing your shopping.

1. Holiday sales are predicted to reach at least $834.4 billion between November and December 2021. (National Retail Federation)

2. 2021 holiday sales are predicted to increase between 8.5 and10.5 percent over 2020 sales. (National Retail Foundation)

3. Shoppers plan to spend an average of $998 on holiday purchases this year. (National Retail Foundation) 

4. 56 percent of consumers hope to receive gift cards as a gift this holiday season. (National Retail Foundation) 

5. 32 percent of all gift card purchases this holiday season are expected to be for restaurants. (National Retail Foundation)

6. LEGO and Barbie have topped the list of the top children’s toys for boys and girls, respectively. (National Retail Foundation)

7. Going into the 2021 holiday season, there is a 172 percent increase in out-of-stock messages. (Adobe)

This year, more products are out of stock than usual due to supply chain issues. Plan your purchases ahead of time, if you can, and be flexible with gift ideas if you can’t find exactly what you are looking for.

Holiday shopping behaviors

Every year, companies track the shopping behaviors of consumers to better understand what they’re looking for and what they’re worried about. Knowing and addressing consumer concerns is the best way companies can keep you happy.

8. 75 percent of holiday shoppers are concerned about products being out of stock. (Deloitte)

9. Almost 70 percent of consumers expect prices to increase this holiday season. (Deloitte)

10. Social media influences the holiday purchases of more than 80 percent of younger consumers, including millennials and Gen Z. (McKinsey & Company)

11. 62 percent of consumers were unable to purchase at least one item on their shopping list due to shortages. (McKinsey & Company)

12. 61 percent of consumers said they plan to purchase from local and independent retailers. (FedEx)

13. 65 percent of shoppers prefer to buy from companies that practice sustainability. (FedEx)

14. 91 percent of shoppers admit to making their holiday purchases at the last minute. (Inmar)

Understanding holiday shopping behaviors can also help you avoid any crowds and make your purchases on time—if not for this season, then for the next!

Online shopping statistics

Over the past few years, online shopping has grown exponentially as more consumers choose to do their shopping from home.

15. This holiday season, 74 percent of consumers plan to shop both online and in stores. (NPD)

16. 73 percent of consumers select standard delivery when shopping online. (Deloitte) 

17. 57 percent of consumers plan to make their purchases online this holiday season. (National Retail Foundation)

18. Cyber Weekend spending is expected to account for 17 percent of online spending during the holiday season. (Adobe)

19. 2021’s Cyber Monday will be the biggest day of spending in U.S. history, up 12.4 percent from last year. (eMarketer)

20. 61 percent of online purchases were made from a computer or tablet in November 2020. (FedEx)

21. Total online holiday spending reached $188 billion in 2020. (FedEx)

Remember, as more people choose to shop online, the number of in-person shoppers will naturally decrease. Doing your shopping at a retail store may end up being the best option for you.

When consumers are shopping

Every year, it seems like consumers are beginning their shopping earlier and earlier. As more shoppers are concerned about shortages and out-of-stock products, holiday shopping has been inching its way even earlier into the year.

22. Just under half of shoppers took advantage of deals by doing holiday shopping before Thanksgiving. (National Retail Foundation)

23. Almost 2 million more people are predicted to shop from Thanksgiving to Cyber Monday in 2021 than in 2020. (National Retail Foundation)

24. 61 percent of shoppers have started their holiday shopping by early November. (National Retail Foundation) 

25. Sales in the period between November 1 and Christmas Eve are predicted to increase by over 7 percent from 2020. (Bloomberg)

Based on these statistics, you may have noticed that a majority of shoppers have already started their holiday shopping, but there are still many who wait until the last minute for their purchases. Holiday shopping can be unpredictable, and that’s why starting as early as possible—and assessing your and your family’s needs and wants—can prevent future headaches.

Don’t forget that credit plays a large role in your holiday shopping. Purchases made with credit cards can affect your credit, both negatively and positively. If you’re looking to rebuild or prevent any future issues related to your credit, our credit education resources can set you on the right path.

Reviewed by Elizabeth Whiting, Credit Consultant and Associate Trainer at CreditRepair.com.

Elizabeth Whiting started with CreditRepair.com in the summer of 2018 as an inbound member services advisor. Recognized several times for her outstanding performance, she quickly advanced within the company. Her genuine desire to help people blossomed into joining the learning and development department as an associate trainer in the late spring of 2020. As an advocate for other’s success, Elizabeth promotes self-development with her internal peers though education, encouragement and support. Utilizing her credit expertise, she has empowered numerous consumers to continue to work towards resolving difficult credit situations and strive to achieve a lifestyle of greater opportunity.

Note: The information provided on CreditRepair.com does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only.

The post 25 holiday spending statistics: Unwrapping what Americans spend the most on appeared first on CreditRepair.com.

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