We all look forward to giving and receiving during the Holiday season. We carry a euphoric anticipation of the big day when we enjoy the smiles on the faces of our loved ones when they open the gifts we gave them. It’s no wonder how we can get carried away and spend beyond our means. It’s difficult, but not impossible, to be creative with gift giving and sticking to a budget.
According to a recent RBC Canadian Consumer Outlook Index survey, Canadians plan to spend an average of $629 on gifts this year. More than half plan to fund their festivities with savings, 24% plan to use credit cards and 23% admit to not having thought about how they’ll pay.
Financial experts warn that emotional spending during the holidays can push you over your financial limits, but a proper budget can prevent the overspending.
Here are some tips to help you save some coin for your Holiday giving:
Build a budget and stick to it! Make a list of all the people you are buying for and set price limits for each. Maybe you want to spend $20 on your aunt but splurge more on your mother. It’s important to write it all down so you can get the big picture. Then stick to your cost limits. If you start overspending on a few gifts, you’ll lose track and end up in debt. Use our budget planner to keep you on track. You won’t feel the pinch during the Holiday’s but you’ll certainly feel it when your bills arrive!
Shop with coupons. Every week your local paper arrives armed with lots of useful coupons. If you prefer online coupons, there are several websites that offer savings like:RedFlagDeals.com or wagjag.com.
Be creative with your gift wrap. Use newspaper, magazines, comics, wall paper or paper bags instead of buying costly gift wrap. Weekend newspapers offer lots of colourful paper that begs to be recycled for gift wrap! Used tissue paper and gift bags can be reused several times before they show wear and tear.
Pick a number and organize a gift exchange. This can come into handy if you have a large family. It’s a fun way to give gifts and it means buying one present instead of many. Be creative with your gifts and set a spending limit. It could be $10 or $20. A gift certificate is a great idea to ensure you spend within your limit.
Have you heard of a wrap your crap party? If you are hosting a festive party, it’s a great way to have share some laughs while enjoying in the giving spirit. Simply search your home for an item that you’re looking to give away, wrap it up, and give to a friend. You may be pleasantly surprised or be shocked at what you receive, either way, it’ll be a good time and you won’t spend a penny!
Leave the credit card at home. One of the best ways to stick to your budget is use cash. Handing over cold hard cash is usually harder than spending with a piece of plastic. Once your cash is gone, it’s the sign to stop shopping. So people usually stick to the items on their shopping list, and don’t give in to the temptation of frivolous or emotional spending. However, if you do choose to use your credit card, do your best to pay off your debt in full and on time. Do not succumb to paying only the minimum each month. You’ll only end up paying the interest and it will take you years, depending on how much you owe, to pay off your debt. You can use a credit card interest calculator to determine how long a debt can be repaid.
In today’s economy it’s difficult to live without experiencing debt. The Holiday season certainly is a good excuse and reason for most of us to go into debt. As the big day quickly approaches please use these tips to keep your spending at bay or at the very least more controlled so you are in a good financial position when all the gifts are unwrapped and the New Year rings in.
For over a decade, OCCA has been helping Canadian families solve difficult debt issues. At OCCA, our objective is to satisfy both the needs of our members and their creditors. Our assistance is based on the premise that paying debts, not avoiding them, is the most important step towards financial stability. We will assist the member to create a budget, offer a re-payment proposal to all creditors, and follow through with their offers. We believe that only the consumer can fix their own credit and an OCCA membership will ensure that the consumer has learned enough to deal with their finances independently and with confidence.
Happy Holidays to you and your family from OCCA Consumer Debt Relief!.
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