Guest post from Kalyn of Creative Savings Blog.
We budget for groceries, household supplies, mortgage payments, and even entertainment funds. But have you ever thought about budgeting for Christmas?
I mean, it makes sense, right? The busiest time of the year can also be the most draining on our wallet.
While those beautiful decorations might be impressive to guests at your Christmas party, and expensive gifts loved on by your kids {for that day, at least!}, none of it is truly necessary.
It’s time to take a break from all the stress, and put a halt to the spending.
Even though a budget seems constricting, it’s actually quite freeing, and you might even have fun trying to create the best Christmas you can on a small budget.
Start saving for Christmas… now!
For years, Christmas has become another column in my budget spreadsheet {I’m an Excel geek!}, but for those of you who follow Crystal’s cash envelope system, that works perfectly fine too. Just set aside a specific amount each week or month, exclusively for Christmas.
Then, when it’s time to start buying gifts or holiday treats, you’ll have a good amount saved up to freely dip into for whatever you need.
And even thought it’s already November, don’t think it’s too late to start saving. Although I personally like to start saving in January, it’s certainly better to have a little stash saved up than none at all.
Calculating a Christmas budget
If you’re not sure exactly how much you spend on gifts, decorations, etc. make your best guess and divide the total amount by how many weeks we have left before the BIG day.
That’s the amount you’ll need to set aside each week to afford your kind of Christmas.
But what if the number is too much or too high for your budget to handle right now?
Then a few things need to happen:
- Reassess what you really “need” to have an enjoyable Christmas season
- Pare down the gift giving
- Look for ways to cut costs, and reduce the amount you usually spend
- If you don’t want to pare down or cut costs, then find a part-time income to help pay for the extras
It’s certainly not fun to deal with a huge bill after the Christmas festivities are over, nor is it the smartest thing for our budgets. But if we plan for those expenses in advance, we can be much better prepared when they do come.
In the meantime, continue to maximize every dollar, scout out the deals, and follow frugal blogs to help make Christmas more budget-friendly.
And if you need a little help in the gift-giving department, I’ve just released a FREE frugal gift guide based on personality types. Every gift included is $25 or less, so you’re sure to find something in there!
Do you have a Christmas budget? When do you start saving?
Kalyn Brooke is a full-time writer and blogger, living in beautiful Southwest Florida with her news photographer husband, and one super adorable bunny, named Twix. She works from home as the owner and author of CreativeSavingsBlog.com, and as a virtual marketing assistant for a variety of bloggers and websites. Small budget living is her passion, book hoarding her weakness, and a well-stocked freezer full of ice cream an essential luxury.
Kristen says
Every year on my first day back to work after Christmas, I create a budget for the upcoming year. I use excel to make a list of everyone I know I’ll be buying a gift for as we’ll as an “oops” budget in case I missed someone or decide to buy for someone new. I then assign a dollar amount to each person I’ll be buying gifts for. Once I have my total amount, it’s divided by 26 weeks and that’s what I save from each paycheck for Christmas. I’m extra careful to not spend more than budgeted per person, always looking for the best deals. I use the envelope system for Christmas and anything left over gets added to next years budget. It’s so simple and I’m never trying to find money to pay for Christmas.
Alyssa Faith says
So true – we don’t need to buy into the Christmas consumer frenzy! A potted arbor vita (sp?) – the most inexpensive evergreen – can make a cute little Christmas tree, set on a stool or small table. And when giving gifts to extended family members while visiting, special foods can be inexpensive but still appreciated – a specialty chocolate bar, bottle of cooking sauce, box of fun tea, coffee, etc. – I’m spending about $3-5 per family member on gifts like these this year.
Beth says
I am a little behind in reading my email, but I saw this post about Christmas savings. Our family budgets everything! That has been my lifesaver for my sanity for years now when it comes to Christmas shopping. I set aside an amount each month all year long. It also frees me up to purchase anytime during the year if I come across something that would make a great Christmas gift. I am able to take advantage of specials or bargains and many times able to get more for each person because the money stretched farther due to fantastic deals. Budgeting it the way to go!!!
Elizabeth says
I see everyone talking about putting savings for different things into different accounts? So do you really have like 5 different savings accounts through your bank for each different fund, or do you stash cash somewhere in your house. I have tried saving for different areas, but when it’s all sitting in my savings account I forget what it’s for…and give up hope. I did Dave Ramseys FPU, but I still cannot figure out this whole budgeting idea! Any tips?
Valerie says
As many others do, I put away a certain amount of money each payday. I have done this for only 2 years now and I am so, so glad that I do this. This account takes away the worry and stress that almost always accompanies holiday gift shopping for me because I have a set amount for everyone, and have more than enough left over to take advantage of the after holiday sales. Very smart move for my household. 🙂
cheryl says
For several years now I have had several extra savings accounts that extends off of my regular account for things like auto expenses, Christmas, vacation, and now we are trying to save for a ten year anniversary trip to Colorado next year. I put just 5.00 into each account every week and by Christmas I have 260.00 in each one. Every time I get extra money for something it goes into the Colorado account. It makes’re s such a big difference.
Hannah Reid says
We just started budgeting each month for Christmas the last two years and it has been so freeing!
Victoria says
We take from the closest “extra pay day” to Christmas. We learned this setting up our budgeting through our church program using crown.org budgeting tools many years back. We budget monthly on 2 expected pay checks, but a few months out of the year, have 3 pay days. Usually one comes around fall to help out! It was August this year. Also started the swagbucks this summer to help out, since we are on one income.
Tshanina @ Thrifty T's Treasures says
When January rolls around, it’s so freeing knowing that Christmas has already been paid for! We start saving for Christmas in January, but I agree that it’s not too late to start saving for this year!
Great post Kalyn Brooke!
Kalyn Brooke | Creative Savings says
Thank you, friend!
Susan says
Check your local community bank to see if they offer a Christmas Club. Most start about the first of November and you make weekly or monthly payments until about the middle of the following October. A check is then mailed to you about the end of October and you’re all set to spend! Keeping this money separate makes it easier for me to avoid dipping into during the year.
Kalyn Brooke | Creative Savings says
This is great for accountability – money is so easy to touch when it’s more accessible!
Robin Burns says
We do a Christmas Club account through our bank. Out of sight , out of mind. What isn’t used can be put in the savings account or used to start the account for the next year, or divided between the two accounts. Either way, it is benefiting our finances.
Marie says
We put $20 in an enevelope every month. This is just the gift money for family. We have roughly 12 immediate family members to buy for so that’s $20. No one leaves in the same state as us so I have to consider postage cost as well.
I do several things to make that $20 stretch. Often Bath and Body works offers a free travel size lotion. I put them in my gift bin. This summer Kohl’s had thermal cups with straws clearanced and then I had 30% off. I got them for under $2 each. For the nieces and nephews they will get these w/ a $5 gift card and either lotion or hand santizer. This way I came in WAY under budget but will help with shipping costs. We ended up going to PA. in Sept. so I took 5 of the gifts so I wouldn’t have to mail them and my sister was kind enough to keep them in a closet til Christmas.
Often stores like JCPenny and Kohl’s sends a $10 gift card. I’ve also gotten them from Eddie Bauer. I try to use them towards gifts. Recently, I attended Woman of Faith and helped with World Vision. They were giving people who sponsored a child a beautiful quilted bag ( Vera Bradley style) Each of the volunteers got one. Then the group I was working with didn’t want there’s or want to gift it to someone so I ended up with 3 extra’s. I’ve also been given brand new CD’s of current artist for volunteering so I’ve saved those as well. I’m always looking for creative ways to stretch the budget. I also like the home made idea but it doesn’t work well for my extended family but will do it with my close friends.
I think it’s important to establish a budget no matter what the amount. It’s not about comparing to someone else’s budget. Once you know what you have it makes shopping so much easier because you know exactly what you’re working with. Also, then you can be wiser about finding deals.
Kalyn Brooke | Creative Savings says
These are really some great ideas. I love that you are always looking for a way to squeeze more gifts into that $20. And they sound like pretty awesome gifts!
Em says
We budget for all gifts all year long. Every payday and certain amount goes into that account (line item ). I took each person I gave a gift to throughout the year and wrote it all down. I added a few dollars for the unexpected baby shower, wedding or child’s friends birthday too.
Amber L. says
Every year since I have been working I have had my bank account set up as a working system. The main paycheck gets dumped into savings and then certain percentages (my pay changes week to week) gets broken into accounts (checking, school taxes, christmas, grocery etc.) I have my Christmas account go into my checking account at the beginning of December. If I bought anything throughout the year for my daughter for Christmas, I save the reciept and allot that money back to myself in December. I try to spend wisely and watch deal sites and then in January I use any Christmas amount left over to put towards the mortgage. It’s my “start the new year off right” plan. Might be $10, but hey, it’s something!
Karen says
We had planned on setting aside $90 each month throughout the year for gifts….but we got sidetracked saving for a big family vacation this summer and never got back in the groove. So I was a little worried about how we were going to pull it off. Then last month my husband received his biggest quarterly bonus ever!! So we are taking about half of it for Christmas gifts and trying to decide how to best use the rest. Feeling so blessed and relieved!
Kalyn Brooke | Creative Savings says
What a blessing! It’s hard when you have SO many things you want to save up for. 🙂
Leah says
I need to be more proactive about saving for Christmas. It definitely puts a strain on my pockets each year. I’m gonna try this now … Thank you!
Helen says
We’ve been saving all year and it’s such a relief to know that we don’t have to worry about it in December. We’re not as far along as I had hoped with the shopping part, but at least we know we’ve got money set aside to get the gifts once we decide on them! 🙂
Kalyn Brooke | Creative Savings says
We already have so much more to worry about in December anyway!
Lana says
We have been saving all year long for 20 years or more. I cannot imagine doing it any other way!
Andrea says
I agree! Including holidays and birthdays (including meals!!!) in the budget means rarely scrambling for money because it’s there in the enevelope.
Siobhan says
I’m focusing on giving gifts of experiences instead of actual gifts to my parents and sister. It might cost more than picking up something at the store, but I know it will be something that they will enjoy and have long last memories of instead of something they don’t really need.
This year I’m sending my parents to a Bed and Breakfast for a weekend, as well as a gift card for a restaurant at the B&B location town. I’ve given my sister concert tickets in the past, and my dad has received sporting events tickets as well.
Kalyn Brooke | Creative Savings says
I love that you gift experiences rather than stuff! You are so right – we really don’t need even half of what we receive at Christmas, but an experience will last a lifetime.
Stephanie @ Mrs. Debtfighter says
It seems parents are the hardest people to buy for because they buy whatever they want or need throughout the year. Sending your parents to a Bed and Breakfast for a weekend is a perfect idea!!! Thanks for sharing!! 🙂
Trina Holden says
we are moving toward gifting time via experiences, as well. A trip to the zoo is great for my 7 year old–he’s old enough to understand it’s not something you can unwrap, but it’s still significant to him.
Crystal Rose says
I don’t have a Christmas budget. I tend to shop sales when I have extra money for it (stock up ahead of time), enter giveaways, and then craft with what I have on hand. Overall the budget is pretty small- but then it’s small year round so that’s not saying much. My daughter gets to pick one present to ask Santa for. So far I’ve been able to make that present happen every year. Between my stockpile, craft stash, and our extended families it all turns out pretty well in the end.
Shelly says
Every pay period I have a certain amt that goes into a savings acct. That way I am able to save all year. I also have an excel budget that I follow closely to make sure we are right on.
Jessica says
I allot $100 per child each year for Christmas and $50 for their birthdays. I do buy throughout the year when I see something that he or she could use or would like, that way the time period before Christmas isn’t so stressful. This year we’re doing a family iPad and each child gets one gift to open. They get a Christmas stocking also. So for their birthdays, they got a small gift from grandma & grandpa plus a gift card set aside for the iPad. Right now we have $100 in gift cards. The grandparents will do the same for Christmas, so we should have half the cost of the ipad covered through giftcards and the rest through our budget.
So from us, my son -age 3- is getting a Lego set that cost 28.99. His stocking stuffers cost $7. The remaining $64 is to the iPad fund.
My ODD, also is getting a Lego set that cost 28.99 and her stocking stuffers were $10. Remaining $61 goes into iPad fund.
My YDD, her birthday is Christmas Eve. I paid a friend $100 to make a quilt out of her old receiving blankets. However, the baby’s birthday gift cost just $6 (a stacking cups set), so $46 goes into the iPad fund.
Thus the iPad fund currently stands at $100 gift cards plus $171 cash. The children will get an additional $150 in giftcards from their grandparents for Christmas- they told us they’ll send the giftcards early so we can purchase the iPad beforehand. We’ll make up the difference, since it’s a family gift. My DH and I don’t otherwise buy each other gifts.
Kalyn Brooke | Creative Savings says
I love how organized you are with what each family member is getting, and how much you’re spending on each!
Leah says
Wow..I love how organized you are. What great kids to be on board with the FAMILY iPad idea. Thanks for sharing.