Holiday Budgeting Tips for Shopping & Travel [2024]
It can be easy to go overboard with holiday shopping. Avoid this mistake with careful planning and intentional budgeting. Celebrating the holidays doesn’t have to drain your finances or max out your credit cards. Use these tips to stay on budget for the new year and prevent holiday expenses from sweeping you away.
Key Takeaways
Sticking to a budget is essential to avoid debt and manage holiday expenses effectively.
Consider alternative gifting strategies like vacations or handmade gifts to save money.
Planning your holiday budget early and reviewing past spending can set you up for a financially sound season.
Understanding Holiday Spending Trends
U.S. Census Bureau data reveals that core retail sales during the 2023 holiday season grew 3.8% over 2022 to a record $964.4 billion. Holiday and Christmas budget trends continue to rise year after year. It's crucial to understand where and how to allocate your budget.
Start with a Holiday Budget Review
Before the holiday rush begins, take a moment to review your past holiday spending. This will give you a realistic idea of what you need to save and help you set a spending limit. This early assessment helps you understand your spending habits and anticipate future needs.
It's also the perfect time to start saving for the holidays. Open a Holiday Club Savings account if you don't already have one.
Utilize Voyage’s savings goal calculator to establish and stick to your holiday spending limits. These tools can help you manage your finances more effectively, ensuring you don’t overspend. For parents, set a Christmas budget per child instead of one, large savings fund. You'll be able to do your Christmas shopping on a budget that works for you.
Read more on organizing your budget.
Best Days to Shop in 2024 for Early Holiday Shopping
Get the best deals by planning your shopping around these key dates:
September: Post-Labor Day sales are perfect for outdoor items like furniture and grills.
October: Look for discounts on cozy apparel and last season’s tech gadgets.
November: Take advantage of Black Friday sales for major electronics.
December: Snag toys and games at reduced prices as retailers clear inventory before the new year.
Maximizing Credit Card Rewards
Take advantage of budgeting apps and credit card rewards to make the most of your holiday spending. Use Voyage's credit cards that offer bonus points for shopping at local stores. Help yourself earn rewards that can be used for future purchases or to pay down the balance.
*Offer valid on in-store purchases within our charter area using Voyage credit cards until 12/31/2024 at midnight. Excludes online purchases. Points credited within one billing cycle; restrictions on maximum points apply. Offer subject to change without notice.
Making the Most of Holiday Budgeting
Set a clear budget for your holiday spending using the 1.5% rule—planning to spend 1.5% of your annual income on holiday expenses. Distribute your budget across gifts, parties, and travel to keep spending under control.
Smart Shopping Strategies
Gift Buying: Consider buying nicer versions of items that recipients would purchase anyway, adding a personal touch without excessive spending.
Holiday Sales: Take advantage of post-Thanksgiving sales such as Black Friday and Cyber Monday to buy bulk items at significantly reduced prices.
Alternative Gifting: Encourage gift exchanges like Secret Santa to reduce the number of purchases you need to make.
Alternative Holiday Celebrations
Consider replacing physical gifts with experiences, such as planning a holiday vacation. This not only cuts down on the clutter of unwanted gifts but can also be more meaningful. Look for off-peak travel deals or local staycations that can be just as refreshing and less expensive.
Learn how to responsibly use your Voyage credit card for your next holiday vacation.
Tips for creating a budget-friendly holiday celebration
Hosting a holiday party on a budget doesn't mean skimping on the fun. Here are some cost-effective strategies:
Potluck Style: Ask guests to bring a dish, which not only cuts costs but adds variety to the menu.
DIY Decorations: Get creative with handmade decorations or reuse items from previous years.
Digital Invitations: Save on paper and postage by sending invites electronically.
Entertainment: Create a festive atmosphere with a playlist of holiday music and classic movies.
Read more tips for budget-friendly celebrations
Avoiding Post-Holiday Debt
Implement strategies to avoid debt from spiraling post-holidays:
Review Spending: Regularly check how much you’ve spent and adjust your budget accordingly.
Post-Holiday Planning: After the holidays, review your spending and adjust your future budgets to better align with your financial goals.
Listen to our podcast episode with Mindy Brouwer, VP Mortgage & Business Services on her thoughts about post-holiday debt.
Prepare for Next Year
Consider opening a Holiday Club Savings account with Voyage to start saving for next year's holiday season. This account helps you intentionally save for your holiday funds, making it easier to manage and ensuring you have enough when the season begins.
By integrating these strategies and tools, you can go into the holiday season without financial stress. Make sure you enjoy the festivities to the fullest.
Saving for next year's holiday season starts with building strong financial habits. Read our blog about building better money habits.
