For many families, Christmas comes not once a year, but lingers on for months.
Credit card bills arrive shortly after season’s end, not to be paid off until the following summer.
Grocery budgets groan under the burden of holiday meals and baking supplies.
Nearly two-thirds of American families don’t know the true cost of their own Christmas celebration and if they did, they would be shocked.
That much … for a single day?
Fight the seasonal spending spree with the financial tool of choice: a Christmas budget.
A budget is more than just a piece of paper, it is a dynamic way to allocate funds and track spending.
Used properly, a budget provides an at-a-glance picture of where your spending falls against your goals.
First things first.
To get grounded before you begin making gift lists and dreaming of décor ideas, set the season’s financial limits with a Christmas budget.
Use a budget form from the Internet or make your own using a blank page in the Christmas planner.
To create a Christmas budget, you will need to list spending categories, set spending goals and track ongoing expenditures.
Budget categories might include:
*Gifts
*Stocking stuffers
*Gift wrap
*Holiday meals
*Baking and kitchen gifts
*Entertaining
*Décor items and Christmas tree
Next to each category, decide on a spending limit.
Allocate available funds according to the most important categories; a year with heavier-than-usual spending on holiday meals may mean making do with no new decorations or trimming back spending on holiday cards.
When setting spending goals, keep the bottom line in mind.
When you have assigned a spending goal to each category, take a deep breath and add it up.
You are one of the minority who knows the true cost of the Christmas season.
If that cost seems out of balance, adjust spending goals downward.
Look for low-cost/no-cost ways to celebrate the season without breaking the bank.
