By Daniel Sulpizio
The holidays are quickly approaching, and along with the excitement of the season and the joy of spending time with family friends often comes stress. How will we finish everything on our to do list – and how will we pay for it without going into debt? Here are a few steps you can take to reduce your financial stress over the coming weeks.
Shopping
When shopping for gifts, be sure to shop around. If you limit your shopping to one particular store, you could overpay in a variety of ways. When you shop somewhere new, you may be able to take advantage of special offers for first-time customers. Do a quick online search before buying to reveal a range of prices from both big box and specialty stores.
You can also check out loss leaders, which are the special sale items a store puts out at a specific time, such as Black Friday specials. Looking for a timely deal on a preferred item can help you save, but remember that once the loss leader attracts you to the store, other items in that store may not offer such deep discounts.
An economical alternative to the store-bought present is a homemade gift. From DIY sugar scrubs to hot cocoa kits, there are many unique and cost-effective homemade options. If you have time or talent to give, a coupon promising a home repair, car wash, home-cooked meal or other service could also delight the recipient, while helping you cut costs.
Shipping and Wrapping
Once you have purchased gifts, try to avoid a hidden cost of gift-giving: shipping. As more shippers switch to a size-based freight rate, even lightweight items can be expensive to ship, so be sure that the $15 toy you’ve purchased won’t cost $20 to ship. In some cases, you can avoid the fee entirely by shipping directly from an online merchant.
When wrapping gifts, thinking “outside the box” can help you save money. Do you have old maps that you haven’t needed since you started using GPS? Add a bow or a silhouette of Santa’s sleigh for a unique and colorful giftwrap. Or use plain brown paper bag for a rustic, eco-friendly look. And there’s no need to buy gift tags if you write the recipient’s name directly on the wrapped gift with a colorful marker.
Entertaining
It’s wonderful to have a house filled with family and friends, but it can be expensive to feed a crowd. If you’re hosting, shop the sales. Grocery stores often offer deals on foods normally associated with the holiday. You might even consider visiting more than one store to take advantage of the best prices at each location.
Remember that certain side dishes, such as potatoes and rice, are relatively inexpensive, and local produce in season is less expensive than exotic fruits or vegetables. When searching for recipes, be mindful of the pantry items you already have, and avoid costly ingredients that you’re not likely to use again. If the cost of hosting a holiday dinner is causing you stress, consider hosting brunch instead. Breakfast casseroles, waffles, pancakes, and homemade baked goods can feed a crowd economically.
Budgeting
First Harvest Credit Union has free financial education program called MoneyEdu. It offers articles, videos, and other resources to help members reach their financial goals. MoneyEdu’s article on “Avoiding Surprises with Holiday Spending” suggests using a holiday spending worksheet to develop a realistic budget for anticipated expenses. Just use a computer spreadsheet, make a list on your mobile device, or even write in a notebook, including categories such as:
Gifts for family, friends, and others on your list
Giftwrap and shipping
Ingredients and packaging for food gifts
Holiday meal expenses
Christmas cards and postage
Travel and entertainment
Once you’ve listed your holiday needs, you can decide how much to spend on each. If the total cost is more than you can afford to spend, look for ways to reduce expenses. Could you suggest a Pollyanna or Secret Santa at work rather than buying for every co-worker? Could you host a potluck New Year’s Eve party instead of providing all the food yourself? A fresh look at each category can help you keep spending in check.
If you need help creating a budget, MoneyEdu offers an online budgeting tool that’s secure and easy to use. As an added incentive to try the tool, MoneyEdu is hosting a $1,000 Budget Challenge Sweepstakes. First Harvest members who create or update their budgets in the program before December 31, 2022, are automatically entered for a chance to win $1,000. The contest details are available at firstharvestcu.com/moneyedu. It’s the perfect time to learn how First Harvest Credit Union and MoneyEdu can help you have a frugal, stress-free Christmas.
Daniel Sulpizio is the Executive Vice President and COO of First Harvest Credit Union.
