The key to NOT overspending on Christmas gifts is to shop with a solid plan. These 6 tips keep me coming in under budget year after year, and are proven to give you extra breathing room AND money left over. Also includes a FREE Christmas List Ideas Printable {with budget} so you can stay on track throughout the season!
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Christmas isn’t supposed to be all about glitter and gifts, but let’s be honest — everyone will probably be buying a little something specialthis year for that special someone on their list. While that’s a pretty hard task in itself, {no seriously, what do you buy the grandma that has everything?} the hardest part of all isnot over-spending.
The advertisem*nts, magazine-worthy gift guides, and enticingly low pricespromise to find you the perfect gift, but when it comes right down to it, their bottom line is way more important than your financial interest and ability to pick the winning present. Harsh, I know, but unfortunately,it’s true!
Retailerswant you to fillbulging shopping bagswith the latest must-have items in exchangehundreds of dollars on yourcredit card — money you probably didn’tintend to spend in the first place — at least not THATmuch.
It’s time to stop shoppingwithout a plan and get allyour finances in order before you head out to the first store on your list.These 6 tips have kept me coming in under budgetyear after year, and will give you extra breathing room and money left over!
1. Use a Christmas gift budget sheet
First, start by making a list of everyone you need to buy for.You can do a separate “would like” to buy for list later for money left over, but the necessary gifts are first priority.Then write down the idealbudget price point for everyperson on your list and brainstorm 2-3 ideas each. You can use The Ultimate List of Creative, Unique, and Frugal Gift Ideasif you get stuck.
It’s best to do this part in pencil just in case you need to erase something and start over. Wheneveryou buy a gift, write down what it was, and exactly how much it cost. That way, you’ll always have everything written down in once place and can keep an ongoing tally of prices so you don’t go over budget.
At first, I created my Christmas Gift Budget Sheet on asimple lined sheet of paper, but now I use this snazzy spreadsheet. If you’d like to download a copy for yourself, just pop your email address in the box below and I’ll get it sent out straight away!
2. Don’t reveal prices
For a deal-finder myself, I know how hard it is notto tell someone the price I paid, especially when I scored thatitem at such a crazy low cost.But doing this could actually costyou more in the long run!
Here’s what I mean:
If you have a budget $25.00 for mom and found the perfect sweater on the clearance rack for $15.00, you kind of, sort of, feel like you need to spend $10.00 more to make it even, right? Well, normally. But in this case, you really shouldn’t.
Instead, keep that awesome price tag all to yourself, and use the extra cash towards something else or to buy items on your “would like to buy for” list. Seriously, no one needs to know!
3. Go handmade
Christmas is the perfect time to get crafty and start creating.I often find that for the price of just one item at the store, you can buy craft supplies to makeat least three to four more gifts. I have stretched my budget further than I ever thought it would go, just by setting aside some time to make my own!
Here’s a few ideas based on the type of crafter you are:
- If you’re a sewer, think tote bags, rice bags, or seasonal pillows.
- If you’re a knitter, make a few extrascarves and hats.
- If you’re a paper crafter, a simple embellished note card set or journal make great gifts.
- If you’re a baker, put together a cookie mixor a few foodie gift baskets.
For even more handmade gift giving ideas,make sure you also follow my DIY Gifts board on Pinterest. I share new tutorials and pins there every week!
Follow Kalyn // Creative Savings’s board DIY Gifts on Pinterest.
4. Don’t buy the hottest new item
Thenewest tech toys and gadgets are almost always way overpriced. Practice patience and wait until they come down in cost. Most often this happens within the next few months after the novelty has worn off and the gift giving season is officially over.
Joseph has wanted an iPad for at least the last 2 years, but he didn’t need an iPad. We waited and are now finally able to buy it for him without sacrificing our hard-earned paycheck. In fact, I think he’s even more excited aboutreceiving it now, since the he waited so long for it!
Remember, anticipation breeds appreciation. Use this as a teachable time and showyour kiddos that they {and you} don’t need the latest and greatest to be content.You’ll save a few dollars too!
5. Go in with family members to buy a larger gift
One of the reasons we were able to afford that iPad I mentioned earlier was because everyone in my immediate family was willing to chip in for it. Everyone’s contribution, includingmy own, was just enough to make that purchase.Joseph’s birthday being in early January made it even more possible to get him the gift he really wanted.
A word of warning though — whenever yougo the contribution route, make sure you keep track of everybody’s “donation”. Writedown each person’s name and the specific amount they gave on the receipt or online purchase printout.Keeping a tally will make sure you don’t overspend and make up the difference yourself.
In fact, it’s a really good idea tostart aseparate file folder or envelope labeled “Christmas Receipts” to keep all Christmas purchases in one place anyway.This not only helps in figuring how much you spent this year {andcanexpect to spend the next}, it also provides easy access to the proper documents when a family member needs to make a return.
6. Start saving for next year
I am a firm believer that it’snever too early to save for Christmas. In fact, one of the core reasons why I’m able to come in right around or under budget every year is because I set aside enough money every week to cover it. Yep, I budget!
It’s really not as hard as you might think, and yes,I believe absolutely everyone should budget — I don’t care how much you make.Otherwise, you’re just stealing money from one category to pay for the other, and you never get far enough ahead to save foranything extra.
To show you just how easy it is to do this, I created a step-by-step guide you can follow in my post called,The Smart Way to Save for Christmas. I recommend you read that,download the printables, and follow my proven system to make sure you’re never caught off guard by Christmas expenses ever again.
When Christmas comes around, you don’t want to stress about gifts or feel out of control shopping for them.And now, youwon’thave to.These tips are your ticket toa Christmas filled with joy and peace, instead of worrying about all the money you *think* you have to spend.
How do you budget for Christmas gifts?
{Go to Day 2: Connecting Gifts with Personality}
Disclosure: Some of the links in the post above are affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers.Read my full disclosure policy here.
