Plan Ahead for Holiday Expenses: Budgeting Tips for a Stress-Free Season

As the holiday season approaches, it’s easy to get caught up in the excitement of gift-giving, festive meals, and travel plans. But if you’re not prepared, all the joy comes with the potential for financial stress. The good news is that with some thoughtful planning and budgeting, you can keep your finances under control and truly enjoy this special time of year. At Farmers & Merchants Bank, we want to help you celebrate the holidays without worrying about overspending.

Set a Realistic Holiday Budget

Speaking of a budget, before the holiday rush kicks in, take a moment to create a detailed budget. Did you know that according to Gallup, Americans planned to spend about $975 on holiday gifts last year?

Break down your own estimated expenses into categories to plan ahead:

Gifts
Travel
Donations
Entertainment
Decorations
Higher grocery bills
Holiday cards and postage

Once you have your budget in place, commit to sticking to it. By knowing your limits and planning ahead, you can avoid the financial strain that comes from last-minute shopping or unplanned expenses.

Smart Shopping for Gifting

Gift-giving is a central part of the holidays, but it’s also where many people overspend. To avoid this, make a list of everyone you plan to buy for, set a spending limit for each person, and track your purchases. Consider doing some comparison shopping to find the best deals and take advantage of holiday sales. (Just remember to stay within your set limits.) And shop early to avoid supply chain delays and price surges.

Personalized gifts can be meaningful without being expensive:

Handmade ornaments
Soup kits
Cookie tins
DIY spa day basket
Comedy club tickets

If you plan to give to a large number of people, consider buying one set of many items in bulk from discount stores like Costco and use them to assemble gift baskets. Planning to mail some gifts or cards? Check out these USPS send-by dates for delivery before December 25.

Donate with Intention

For many, the holidays are also a time to give back. If you’re planning to make charitable donations, decide ahead of time how much you can reasonably contribute without straining your budget.

If the holidays feel too tight, consider these ideas:

A donor-advised fund to manage donations
Small monthly recurring donations
Volunteering your time or skills
Helping out a neighbor
Requesting donations to your favorite charity instead of receiving gifts

These generous ideas have the added bonus of connecting you with your community, which can also help you increase your joy and manage stress.

Budget-Friendly Travel Tips

If your holiday plans include traveling, start researching early to ensure you won’t be caught off guard by unexpected travel expenses.

Booking flights or accommodations early to secure lower rates.
Redeem travel rewards or points to offset costs.
Consider alternate driving or train travel if flying is too expensive.
Use a cash-back credit card to rack up more points.

Holiday travel can be both physically and financially taxing, so don’t feel bad if you decide to stay home.

Managing Holiday Financial Stress

Even with the best plans, holiday expenses can sometimes feel overwhelming. But you don’t need to spend excessively to have a memorable and joyful holiday. If you’re feeling the pinch, try adjusting your budget or cutting back in areas where you might be able to save. Prioritize what’s most important to you — whether that’s spending time with loved ones or contributing to a cause you care about.

And remember, it’s okay to say no to anything that pushes your budget beyond its limits:

Party invitations
Gift exchanges
Fancy printed holiday cards
Hosting a large gathering
Buying a new outfit
Professional photography

Farmers & Merchants Bank is here to support you with personalized savings plans, financial guidance, and tools to keep your holiday budgeting on track.

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