How to Stick to the Christmas Budget

Best Ways to Use a Christmas Gift List to Stop Overspending

Nov 2, 2009

Stick to a Christmas budget and stop overspending by using simple methods to make the most of a Christmas gift list.

Many families know that the key to sticking to a Christmas budget is making a Christmas gift list. Even those who use a list, however, can fall prey to buying multiple presents for the same person, overspending or buying more than they need. Learn how to make the most efficient list for Christmas shopping and methods for sticking to the list as it is written.

Make a Christmas Budget

Making a Christmas budget should be part of every family’s holiday routine. Deciding in advance how much money will be spent on the holiday helps to keep spending reasonable. The amount spent on holiday shopping will vary by family and will depend on whether the family pays for the entire holiday with cash or whether credit cards will be used. Even families who use credit cards to fund holiday purchases should decide how much they will spend instead of totaling purchases when Christmas shopping is finished.

Make a Christmas Gift List

A Christmas gift list is the linchpin in sticking to the Christmas budget. The gift list should include all the gifts that will be purchased for each person. Spouses, children, family members, teachers, friends, neighbors and everyone who receives a gift should be on the list.

Brainstorm gift ideas for each person and include these ideas on the list as well. Then, each name on the list should be assigned a dollar amount for gifts. This amount is a guideline for spending and should be a realistic estimate of how much the anticipated gift will cost. If a teacher is on the list for example, a gift idea may be a gift certificate to her favorite store and the amount to spend may be $10. The total amount for all the gifts should not be more than the Christmas budget.

Stick to the Christmas Gift List

With the Christmas planning and holiday shopping list complete it is time to start shopping. When shopping, carry the list. If a gift on the list is located, write what was purchased and how much money it cost next to the person’s name on the list. This helps to compare how much was budgeted and how much was spent.

If shopping online or through catalogs, use the list to check off purchases. Be sure to include any shipping and handling charges when tracking purchases. Cross a line through the person’s name to help make the connection that the person no longer needs a gift.

Finding the Best Christmas Gifts

One of the problems that can arise while Christmas shopping is finding a better, cheaper or more appropriate gift for a person who was already crossed off the list. If a better gift is found, check if the first gift that was purchased can suit another person on the list. If not, return the first gift. Many people return gifts after Christmas, but there is no reason an extra gift can’t be returned during the holiday shopping season! Saving receipts makes it easier to do so.

Tracking the Christmas Budget

Tracking the budget while Christmas shopping helps prevent overspending. One way to keep track of receipts and to keep a running total while shopping is to attach an envelope to the gift list. When an item is purchased, place the receipt in the envelope, write the amount spent and subtract it from the total Christmas budget. As holiday shopping continues, the balance will go down. When the money is gone, the Christmas shopping is done.

Making a Christmas gift list is the key to sticking to a Christmas budget. By assigning each person on the list a specific gift and a specific amount of money to purchase the gift, it is easier to make sure that holiday purchases will not exceed the budget. Using the list while shopping, crossing off purchased gifts and tracking purchases are ways to help prevent overspending. If extra gifts are purchased or too much money is spent, it is easy to return items if receipts have been saved in one envelope.

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The copyright of the article How to Stick to the Christmas Budget in Family Budgeting is owned by Genna Cockerham. Permission to republish How to Stick to the Christmas Budget in print or online must be granted by the author in writing.