The holidays are nearly here, and many people are looking for ways to keep their family traditions alive and celebrate this joyful season while recognizing the reality of tight budgets and economic uncertainty. No one wants a January debt hangover, so here are some tips to help you be financially awesome — and stretch your dollars — during this festive time of year.
Establish a budget and stick to your spending limit.
Start by creating a detailed and specific budget for your holiday expenses, divided into categories for prioritization and easy review. Gifts may be the most obvious major expenditure, but other types of expenses can add up quickly too: food and drinks for entertaining, decorations and gift wrap, a new outfit for a party, airfare or gas if you’re traveling to visit family, and so on. Add up the individual budget amounts and set that total as your overall spending limit — and commit to staying within this limit. Then use your bank or credit card app to keep an eye on your spending to make sure you stay on budget.
Explore DIY or thrifted gifts and decorations.
Get crafty and make gifts for your loved ones. In addition to saving money, handmade gifts can be more meaningful. DIY options can be physical objects like photo cards, knitted scarves, or homemade jam, or more intangible items like chore coupon books or “gift certificates” for inexpensive activities to do together. You might also check thrift stores and garage sales for vintage or secondhand items that could use a new home. Or combine thrifting with crafting — say, by painting a secondhand terracotta pot or adding embroidery to vintage tea towels. You can take this same approach to holiday decorations, too, by using homemade ornaments (don’t overlook recycled household items as components!) or thrifted finds to set a festive tone without spending much money.
Prioritize creating memories over giving material items.
Studies have shown that experiences tend to provide greater long-term satisfaction and happiness than material possessions, so instead of giving costly material gifts, focus on creating memories with your loved ones. Rather than splurging on that pricey new toy or electronic device, think about planning a family adventure that will create lifelong memories. If you can’t get together with your loved ones, a personalized photo book or calendar featuring past shared experiences can highlight treasured memories.
Consider tapping credit card cash-back offers and other rewards.
Another way to save money on holiday expenses is to take advantage of cash-back rewards, discounts, and other credit card perks. For example, the Washington Trust Clearly Cash Back credit card offers unlimited 1.5% cash back on qualifying net purchases. The card also features 100% fraud protection with zero liability, for greater peace of mind. Just remember your budget and spending limit when using it!
If you’d like to explore more ways to be financially awesome this holiday season, talk with a Washington Trust banker today. We’re happy to answer your questions and offer advice, tools, and resources to help you reach your goals. Use our Find a Location page to get started.