It’s all too easy to overspend during the holiday season. Whether it’s Thanksgiving, Hanukkah, Christmas or New Year’s, there are gifts, new clothes, and food and drink to factor into your holiday shopping list – even at a time when COVID-19 restrictions are in place and our gatherings might not be as large as in previous years.

According to the National Retail Federation, US consumers plan to spend $997.79 on gifts, holiday items such as decorations and food, and additional “non-gift” purchases for themselves and their families this coming holiday season, inspired by friends, neighbors and celebrities on social media.1

Everyone wants to enjoy the holiday season to the fullest, but you don’t want a January that includes worrying about your finances. Luckily, there are lots of ways to celebrate in style without breaking the bank.

Create a (realistic) budget

Don’t decide on an arbitrary number and make that your budget. Go back over what you spent last year and create a true-to-life picture of your expenses. Factor in any changes in lifestyle in the past year, such as getting married, buying a house, the birth of a new child – in addition to impact of the pandemic on your income. Once you have a real view on what you will spend, you can start looking for places to curb your costs.

Suggest doing Secret Santa with family, friends and co-workers

Only having to buy one gift stretches your money further and eliminates a lot of the stress around holiday shopping. It’s especially perfect for large families, where you don’t want to buy for everyone but don’t want anyone to feel left out.

Use your phone to save money

If you see that must-have item in a store or online, price check it on your phone to see if it’s cheaper somewhere else. You can also use your phone and search engines to find promo codes for many retailers. A lot of stores also have price-match policies that you can use.

Get creative

Homemade gifts and decorations are often the most cherished and appreciated. Children love arts and crafts, so making decorations not only saves money, but creates festive memories for everyone.

Don’t wait until the last minute

The early bird catches the worm, and this is especially true when it comes to doing holiday shopping early. The longer you wait, the more retailers can increase prices. Make a November resolution to get all your shopping done early this year.

Rotate hosting duties

Even if your gatherings will be smaller this year as a result of COVID-19, hosting can get expensive—food, beverages, party favors, and decorations. If you do Christmas Eve, let someone else take on New Year’s Eve. This works especially well for family gatherings. If you are hosting, be sure to buy in bulk—wine, canapes, chips and dip.

Cut or freeze other expenses for the duration of the holiday season

If you’re traveling or just not motivated, see if you can consolidate your music expenses with your family into one Spotify account, for example. Look to do the same with other expenditures, such as MealPal and kids activities.

Remember we’re all in the same boat

Everyone overspends on the holidays. There’s a good chance that if you suggest a way to save money, everyone will be delighted. This includes setting limits on what you spend on gifts for each other or encouraging everyone in the family to make a dessert or side dish.  

 

1 National Retail Federation Annual 2020 Holiday Survey, conducted by Prosper Insights & Analytics

https://nrf.com/media-center/press-releases/consumers-prioritize-spending-family-friends-ahead-holiday-season

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Media contact
Sara Sefcovic
New York Life Insurance Company
(212) 576-4499
Sara_M_Sefcovic@newyorklife.com

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1) https://nrf.com/media-center/press-releases/nrf-forecasts-holiday-sales-will-grow-between-38-and-42-percent