A Financially Peaceful Holiday

The leaves are starting to change color, and the excitement for the holiday season is starting to build. It’s a time of joy, celebration, and yes, spending. Whether you’re planning a festive Christmas dinner, buying gifts for family and friends, or traveling to see loved ones, the financial toll of the holidays can be significant. Start planning now to help ensure your holiday season remains joyful and financially stress-free.

Start Early and Plan Ahead

The key to a peaceful, financially sound holiday season is to start early. Know someone who finishes their holiday shopping by mid-September? Don’t worry; you don’t have to go that far. But starting sooner rather than later has its perks. Early planning gives you more time to find the best deals and avoid the last-minute rush that often leads to overspending. Plus, starting early allows you to spread out your purchases over several weeks or months rather than scrambling to pay for everything at once.

Create and Stick to a Budget

Creating a budget is the cornerstone of holiday financial planning. Begin by making a list of everyone you intend to shop for, and assign a dollar amount to each gift. If your total exceeds what you can afford, it’s time to make adjustments. Remember, the holidays aren’t just about gifts. Include other expenses such as food, decorations, travel, and even the cost of postage for holiday cards. Use a budget-tracking app like YNAB or even a simpler Google Sheet template like this one to keep an eye on your spending and ensure you stay within your limits.

Avoid Impulse Buying

The holiday season is infamous for its enticing sales and promotional offers that make it all too easy to overspend. Try shopping without a cart, eating a snack from home before shopping, and unsubscribing from marketing emails. And before you get swept up in the excitement of a “50% Off Today Only” sign, remember to stick to your budget — just because something is on sale doesn’t mean you’re saving money if it wasn’t in your budget. Smart shoppers know that some of the best deals often come after the holiday season, during post-holiday sales, so keep that in mind if you’re hunting for bargains.

Share Budgeting with Loved Ones

Having open conversations with friends and family about budgets can prevent unrealistic expectations. If the financial strain is too much, consider alternate ways to celebrate. Homemade gifts, a festive movie night, or even a holiday cookie swap can be just as meaningful as store-bought presents. Share your budgeting strategies with your children as well; it’s never too early to teach them the value of money and thoughtful spending. Let them help with budgeting decisions and shop for presents together — it’s an educational and bonding experience all in one!

Leverage Credit Wisely

Credit cards can be useful during the holiday season, but they can also lead to debt if not managed properly. Before the holiday frenzy begins, check your current balances and set a firm limit on how much credit you’re willing to use. Utilize points and rewards to offset costs where possible, but avoid maximizing your credit cards. A healthy debt-to-credit ratio is important not only for your financial well-being but also to maintain a good credit score.

Plan for Next Year

Thinking ahead can also relieve a lot of financial pressure. After this year’s holiday season, review your spending and create a budget for next year. Consider starting a dedicated holiday savings account. Even small, regular deposits can add up over the year, giving you a financial cushion when the next holiday season rolls around. Also, keep an eye out for post-holiday sales to snag decorations and other items at discounted prices for next year.

Partner with Us

At Farmers & Merchants Bank, we understand the importance of financial stability, especially during the holiday season. Being part of the small-town Nebraska communities we serve, our goal is to support you in achieving your financial goals. We offer personal savings, checking, loans, credit cards, and youth savings accounts to make managing your money easier and more efficient.

Wishing you a joyous and financially peaceful holiday season! If you need support with financial planning, don’t hesitate to reach out to us. We’re here to help keep your holidays bright.