How to enjoy Christmas on a tight family budget

Staying financially sober this time of year can be a real challenge for many families. I firmly believe that whatever your financial situation is you can still enjoy a wonderful Christmas holiday.

Following are some of the best ways I know to enjoy the holidays on a tight family budget. (For more tips on how to save money over the Christmas holidays please see my personal finance posts.)

Formulate A Plan

Begin by making note of expenses (parties, extra long distance phone calls) that aren’t related to gifts. Now think of how you can reduce these costs. Be creative.

Review Last Year’s Expenses

Keep your gift buying in check by looking at your gift expenses from last year.

Maintain A Budget

Stick to your family budget. Place cash in an envelope labeled ‘gift buying’ and use only what you have set aside. Or, if you prefer to use debit or credit, keep all receipts in an envelope. To avoid going over budget, keep a running total of what you have spent.

Cancel Duty Gifts

Cut down on the number of gifts you give. If you’re still exchanging gifts with friends and relatives you hardly see or neighbors and co-workers you are reluctant to offend – stop. Chances are good they to will be relieved to hear they have one less gift to buy.

Think Personal Over Lavish

Consider some of the most memorable gifts you have received, chances are they didn’t cost a lot but were thoughtfully selected or handcrafted.

Share In The Cost

Got a family member who has been eyeing an expensive gift all year? Pass the word around to other family members and maybe everyone can share in the cost.

Only Make Promises You Can Keep

When it comes to the very special little people in your life, staying on budget can be pretty tough. Only make promises you can keep, and resist the urge to give in to expensive fads.

Make A Gift Expense List

Imitate Santa and make a list of everyone you’re buying for.

Plan Your Shopping In Advance

Window shopping via catalogues and the Internet is a great prelude to shopping. And when you go, take your list. A quick glance can kept you on track and save time by showing you all the gift items that could be purchased in the same store.

Cross Off Items

As you shop, mark off the items you buy. When you get to the end of your list – STOP! Forget about that little extra something and get out of the mall fast! Impulse buying often equals financial disaster.

Deduct Costs As You Shop

When you make a purchase, staple the receipt to your list and deduct the amount spent. That way, you will always have a true balance from which to shop.

Stock Up On Basics

Use the holidays as an opportunity to stock up on year round items like craft supplies, educational books etc.

Give Joint Gifts

Where possible, give couple or family gifts everyone can enjoy (videos, games, gift baskets, dinner certificates). Or, give one gift to the adults and a second gift to all the kids in the family.

For more ideas on how to make the most of your Christmas holidays please stay tuned to future family life posts.