The holiday season itself is often a season of cheer, but for many people it also becomes a season of financial stress. The anxiety over buying complex gifts and attending lavish parties can be sending debt sky-high. According to recent estimates, Americans shell out more than $1,000 in annual average holiday expenditures, most of those dollars being spent on credit. That cost will last long beyond the holidays; a season that should be filled with merriment can soon become a season of anxiety. But if we can turn that trend away from spending and more toward experience, we can enjoy a merry holiday season that will also be financial smart.
Simple but meaningful traditions replace excessive spending, and that you can certainly afford. Such as family karaoke nights, making lists of things we are thankful for, or digging through old photos, unite families and bring joy without expense. Volunteering at a local shelter, attending community events, or making your own decorations are other ways to enjoy the season. These things not only unite people with their family members but also allow giving back to their communities and loosening the grip during holiday cheer.
Hidden Cost of Holiday Debt
Holiday debt isn’t just an economic issue; it’s a mental health and overall well-being issue, too. In fact, studies show that a debt-filled start to the new year brings anxiety, stresses upon relationships, and a failure of long-term financial goals. By avoiding holiday debt temptations you are setting yourself up for a healthy financial new year to come. What that means is that priorities need to get straight: people and experiences, not things.
Three Practical Tips to a Debt-Free Holiday Season
Plan Your Spending in Advance
Before the holiday season, make a firm, realistic spending budget. Determine how much money you can afford to spend on gifts, food, travel, and other holiday expenses. Set specific cash in each category and pay in cash or by a debit card so you won’t over-spend. A plan in advance avoids impulse buys or tempting offers.
Save Money with Thoughtful, Homemade Gifts
Do not blow hundreds of dollars at the shopping malls on gift cards. Create thoughtful homemade gifts. A hand-written letter, framed photo, or a jar full of thankfulness slips might be more precious to receive than gift cards from the shopping malls. These are effort and thought through and through, reminding the recipient it is the thought, not the price, that counts.
Relish Free or Low-Expense Fun
Holiday fun doesn’t have to be prohibitively expensive. Game nights with your family, view the holiday light displays around the neighborhood, or have a potluck where everyone brings a dish are low-budget ideas. Making a blanket fort a cozy retreat for a night out to the movies, making holiday decorations in a group effort, or singing along with your holiday song favorites create memories for a lifetime without causing fiscal stress.
Why Simple Holiday Moments Are Important
If we strip all the commercialism from the holidays, what are we left with? Love, appreciation, and connection. Sitting by the fire with a hot cup of something, hearing family traditions, or taking a moment to reflect on what you’re thankful for makes your holiday so much more enriching. These traditions save you money but give you time to be present in the moment.