Show me the $$$: Financing the Festivities

Welcome back to Show me the $$$. If this is your first time, feel free to review prior Show Me the $$$ article posts.  

Financing Your fun

I enjoy so many things about the holidays! I like the food, the decorations, the atmosphere, and the gifts. But the holidays can be, well, expensive. Blow up Santa's to put on the lawn can be over $50.  A holiday dinner can easily be $100 or more. This doesn't include if you pick up holiday treats each time you go to the store. They are always in the front of the store, welcoming you as soon as you enter. Next are activities such as parties, plays, vacations, or travel to visit relatives. And, you haven't hit the most expensive part yet, the presents! 

Ok, I admit it, I'm a big kid. I love presents. They are fun to buy, wrap, and receive. But I am surprised by how much people can spend on presents, especially for other adults. I am going to say something that may be hard to hear. There is usually no need to buy adults other presents. There may be a time when your retired mother is low on funds, and you use the holiday as an excuse to help her. But for the most part, we are adults, if we need something we can get it ourselves. I know, I sound like the Grinch, don't I? Or maybe Ebenezer Scrooge? So, my husband and I use the holidays to buy each other things we need and were going to buy anyway. I could use a pair of slippers as my pair from 2020 self-destructed. I also need another winter nightgown as I am down to 1. My other nightgown from 2016 has more holes in it than a slice of Swiss cheese. My husband is low on t-shirts. Therefore, my husband and I are going to buy items we planned to purchase anyway and wrap them as Christmas gifts to make it more fun.

But the holidays can be manageable if you have a plan in place. Let's say you wanted to take a trip to Miami. You wouldn't just drive to the airport and jump on the next plane. No, you would plan it. You would check your schedule to see when you can go. If you work for a company, you may need to request time off. Then, you would buy airline tickets, make hotel reservations, and reserve a rental card if you need one. 

Making a Plan for Your Merriment

There is not a one size fits all plan to budget for the holidays. As you will see, Amanda and I have different ways to plan for the holidays. Amanda plans months in advance whereas I make my plan in November. Amanda is a planner and I tend to be more spontaneous. It does not matter as long as I am in control of my finances, and they are not controlling me.

Jamie's Plan: Paying for the Presents

In November, my husband and I discuss a budget for our two children, ourselves, and anyone else that we plan to purchase gifts for. Most of our budget goes to the children. We do not have a large family around. The money comes from an account designated for miscellaneous purchases and the bills that hit you out of the blue such as car repairs and medical bills. You might ask, what if this account hit zero dollars or what if you can't afford a "miscellaneous" account? We will be tackling financial issues this coming year and how to get yourself out of debt and with money behind you. The short answer is that this has only come close to happening once. I was unable to work for a bit and we hit some major plumbing issues. But it is amazing what gifts you can find on sale! And while, at times, the kids may ask for something expensive, they also ask for very reasonable gifts as well. Not only that, but they also keep an eye out for sales. Just this afternoon, my texted me that an item on his Christmas list was on sale for 50% off. If a member of the family does want or need something expensive for the holidays, then we may choose to split the gift with another family member. Perhaps we pay for part and grandpa pays for the other part. 

But how much do I spend during the Christmas season? Here is a sample budget.

• Kids- $250 per child = $500
• The parents = $250
• Grandparent = $50
• Sister and Brother-in-law = $75
• Niece and her family = $50
• Miscellaneous gifts = $100
• Christmas Eve Dinner = $50
• Christmas Dinner = $150
• Miscellaneous festivities = $100

Total: $1325*

* As mentioned above, my husband and I usually buy each other gifts of items that we need. This is the same for the kids. Some of their gift includes clothes they need, money that they use for living expenses, or gift cards for food at some inexpensive restaurants. Also, usually the food we purchase for the holidays becomes leftovers for several days later. Therefore, not all of the $1325 is actually just holiday purchases. 

Amanda's Plan: Show me the Money!

I start planning Christmas in January. No for reals. We start this process a whole year in advance. Each month I automatically transfer $100 a month into a savings account that is marked for Gifts. This way, each month, I've built into my budget what I plan to spend for the whole year and its on autopilot. I have most of my funds available to me come mid October, which is when I do a bulk of my shopping. I refuse to go into stores in December. It ruins the spirit of Christmas to see people packed in like sardines fighting over ugly ties no one in their right mind will ever actually wear. By doing all of my shopping in October and November I have time to plan for MEANINGFUL non impulse buys for my loved ones. I can still score a good Black Friday deal online, but I try and make holiday spending purposeful. This way my December can be filled with Christmas light viewing, snuggling for holiday movies, taking our time with the tree and outside lights, and enjoying what for me, is the real meaning of Christmas. A break from the hustle and bustle, a focus on my savior, and ways I can look to give back to others.

We also prioritize EXPERIENCES over stuff. I'll ask my mom to buy a pass to the local discovery science center in lieu of presents that will fill our 750 square foot condo.... and I'll gift those experiences too because we can go places and make memories that don't take up prime closet real estate.

• Future in-laws- $100
• Mom - $50
• Aunt - $30
• Sisters 2 kids (under 5): $70
• Pending Fiancé: $150
• Nugget (8 years old): $150
• Shutterfly Photo Ornaments and magnet cards: $70
• Holiday matching pjs (every other year): Credit Card Rewards Points

Total: $620.00

Sometimes I may spend more money. This year, I totally did. For instance, I bought my son and I memberships to the trampoline park on Black Friday. It cost me $300 together for both of us ($149 a person). Last year I got them for a better 2 hour only Black Friday deal ($80 EACH and used Credit Card rewards $$$ to pay for them), but this year I didn't use any Credit Cards as I was waiting on a divorce and refinance, so I didn't have rewards points. Usually I do, and I use those to pay for experience that get wrapped under the tree. This year, I used some cash from my side hustle to cover the memberships because we live in 750 square feet.... and that trampoline park is a LIFESAVER. 

With the $300 for the trampoline park, I ended up spending $810 on Christmas. If I need to replace any decorations because some lights burnt out, I usually use some Credit card rewards points or as was the case for this year since I didn't have any, I spent $50 on a new rotating Christmas tree base because my old one burnt out. I still pulled the money from the same savings account. So $50 of that $810 was my rotating tree base because I believe Trees should rotate and I'll spend money on that to view all of my ornaments as they slowly turn in amazing twinkle fashion.  

But Amanda, you save $100 a month ($1200 a year)... but only spend $600-$800? Don't worry, my math isn't bad. I use the other "gift" money as a starter fund for birthdays and baby showers and those random events that you get invited to over the year. When you have three birthdays in September alone, it helps to have some cash stashed aside! I used to save $100 a month for just Christmas, but needed to scale down my spending post divorce. I may bump it up next year, but for now I feel good about being done for the holidays all before December rolls around.        

 

Thriving not Just Surviving is a personal blog, written and edited by yours truly, and features guest writers and my personal life stories. I am NOT a financial professional... I am not a CPA, nor do I hold any financial certifications. Please seek a professional for any “real” advice when it comes to your own finances and money. The views and opinions expressed on this blog are purely the blog owners and are meant for entertainment purposes.