How to Enjoy the Holidays Without Breaking Your Budget

The holiday season should be a time for celebration, but without a budget, it can quickly turn into a headache.

Paying for gifts, traveling expenses and groceries adds up quickly, and last-minute changes in plans can lead to even more spending. Holiday retail sales during November and December in 2021 could grow as much as 11.5 percent over the same period in 2020, according to the National Retail Federation.

To avoid getting surprised with a huge credit card bill in January, take these steps to make sure you keep your holiday spending under control:

DELAY BUYING

By simply waiting 30 minutes before making a purchase, you could end up buying less. When people delay rewards, the pause decreases the brain’s response to them, a 2008 study in the Journal of Neuroscience shows. If you’re tempted to purchase a sale item immediately, take a break and think it over. You might not feel the urge to spend that money after waiting. To achieve the effect when shopping online, consider trying a free application like Self Control to set a half-hour block on the website with the tempting deal.

THINK LONG-TERM

Instead of trying to keep up with your friends’ spending, refocus on your own financial goals, such as paying off a mortgage, establishing an emergency fund or putting aside money for your kids’ college tuition. Keep these goals posted where you can see them every day, so they’re top-of-mind when you hit the mall for holiday shopping. Reminding yourself of these plans can help you avoid impulsive, short-term spending sprees.

IT’S ABOUT SHARING

As family members gather to share holiday meals, don’t get stuck buying all the groceries. For Thanksgiving, offer to prepare the turkey and stuffing and ask your guests to bring side dishes, drinks and desserts. You’ll trim your food budget and spend less time in the kitchen, while also having fun sampling new foods and exchanging recipes.

SHOP TO A DIFFERENT BEAT

Sometimes it’s nice to browse for gifts while sipping your gingerbread latte and listening to the seventh rendition of “Jingle Bells” you’ve heard that day. But if you need to focus on sticking to a budget, it might be easier to listen to some unseasonal tunes. Holiday-themed music and scents can increase consumers’ intentions to purchase items and stay in a store longer, according to a 2005 study published in the Journal of Business Research. Steel yourself against these subtle marketing tactics by dialing up your favorite music on a portable player.

SPLURGE DISCRETELY

The holidays can be stressful, and chances are, you’ll spend some money trying to unwind. Instead of racking up restaurant and movie splurges on your credit card, keep these costs separate by either paying in cash or with a separate account. You’ll have more peace of mind knowing that you’re not blowing your shopping budget.

USE REWARDS

If you take part in a credit card rewards program, chances are your perks have piled up. Instead of splurging on yourself, use those benefits to save on gifts. Some cards also offer travel deals, which could come in handy for a holiday trip.

If you have a Fortis Edge Capital VISA Credit Card, you can redeem your points for merchandise, travel, gift cards and more.

LET THOUGHTFULNESS TOP PRICE

When shopping for someone, it’s easy to default to one-size-fits-all gifts. But this year, think instead about what makes the person unique: If your Seahawks-fan sister loves knitting, look for patterns that include the team’s mascot. It’ll be more personal than a giant basket of scented soaps—and less expensive, too.

INVEST IN EXPERIENCES

If you feel like your holiday season won’t be a success unless you drop some big bucks on gifts for your friends and family, think again. Research shows that experiences—not merchandise—will bring more long-term happiness. Spend an evening caroling, watching old movies or playing board games with your loved ones. You won’t spend much money at all, and you’ll remember the time spent together long afterward.

Traveling during the holidays? Learn about the 5 cost efficient travel tips for the holiday season.

—Claire Davidson, NerdWallet