Christmas on a Tight Budget

family decorating Christmas tree

Most people have experienced Christmas when times were tight. When I was a poor college student, I made sure to shop only when during sales; even better was when I could find an extra 40% off coupon. One year I had so little money that I worked a part-time job from 8-noon, then met up with a UPS driver and jumped off and on his truck delivering packages until 8pm. I was worn out, but I had Christmas money. Here are some ideas if you’re coming up a little short this year.

Determine what’s important

It’s human nature to add to your list over time. Maybe last year your neighbor gave you a bottle of wine and you rushed out to reciprocate. You added them to the list this year so you wouldn’t forget. But how many people have “appeared” on your list? If times are tight, giving a gift just because you received one may not be doable. And honestly, your brother probably doesn’t need another gift card.

Determining what’s important doesn’t stop with people. Look at your traditions – what really matters, and what’s been added on over the years? In my house, having a live tree is essential. I can’t imagine Christmas without that smell. That’s something I would budget for. However, attending my wife’s formal company party – while a lot of fun – isn’t that important. There’s really no need to rent a tux when times are tight.

Budget

Once you’re focused on what’s truly important, see if you can afford it. Determine the amount you can spend for each gift recipient and to decorate/attend parties. If you end up with more money going out than you can afford, you may need to rethink your priorities.

Here’s where really considering what the holidays mean to people on your gift list can help. My brothers wouldn’t really mind if we skipped the whole gift giving exercise. But when our kids were young, we probably (okay, we did) spoiled them a little. We wanted Christmas to be as magical as possible for them. Don’t think you need the same set budget for each recipient.

More income

The other side of spending less is always making more. If you can’t cut your list, the only solution is to take on another job or sell some of your items. I jumped on and off the UPS truck, making really good money that not only paid for Christmas but helped with my next semester of school. Lots of jobs open up for the holidays – if you can fit one into your schedule it can make a huge difference.

If time is tight, look around your house to see if there are money-making items just sitting there. Maybe you don’t need seven purses or two new tablets. And while you’re looking, see if you can find any old gift cards that you can use as cash to buy presents. My live tree budget every year has been covered by credit card points.

Give less

Having kids makes Christmas amazing and difficult. You see the wonder and magic of Christmas morning through their eyes (sleepy as you are). But you also hear the inevitable comparisons of what others got. No matter who you are, someone is giving more to their kids than you. Maybe it’s a new video gaming system, maybe it’s a new car.

Stop trying to run that race. Think about what your kids – and everyone – on your list want and do your best. Don’t worry if you have to give half as much as you did last year. You aren’t the first parent who ever said “No, I’m not buying that $250 Lego set for Timmy.”

Consider experiences over gifts

I would bet my son can’t remember everything he got for Christmas last year, but he can detail the day we went hiking when it was freezing and we ate lunch on top of a mountain. Especially in a year when you don’t have a lot of cash, give experiences. Drive around looking at Christmas lights with the kids wrapped in blankets and drinking mugs of cocoa. Head to a state park to hike or have a picnic (yes, even in winter). Think about what people on your list love to DO, then do it with them.

Gifts don’t have to be store-bought

When I was dating my wife, she gave me a gift of cookies. Peanut butter cookies in a tin container. There have been a lot of gifts over the years – and no, I don’t remember every one – but those cookies will always stand out. You have a talent, whether it’s baking or crafts or whatever. Give the gift of your talents.

Delay

Christmas has always been a little flexible in my family. Christmas at my grandparents was on Christmas Eve. Since my parents were divorced, I often had another Christmas the weekend before the actual date. And since I’ve had a family of my own, we’ve moved it into January on occasion.

If your money crunch is time sensitive, consider delaying Christmas. Not only does this have the advantage of giving you a little more time, you also can hit the after-Christmas sales. Just leave up the lights a little longer and stream some holiday tunes.

Don’t be embarrassed by having to curtail Christmas

Most of us have been in your shoes at one time or another. And even if people seem to have enough, you don’t really know how much they are charging and paying off for months on end. If people are pushing you to spend more than you can, be honest about having to watch your finances. Anyone who cares about you will completely understand.

No matter what you decide – whether you limit Christmas shopping or focus on experiences – remember what’s important. Spend quality time with the people who matter to you. That may be family or that may be friends. Often friends are much more like family that actual family is. Let them know how important they are, and you’ll have a great holiday.

Photo by Jonathan Borba

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