Last year holiday spending reached a record high of $929.5 billion, and it's expected to rise another 4% this season (LA Times).
These expenses can be overwhelming and leave families stressed, and in distress, if their finances fall short. Parents wishing to make their children's holiday special, while meeting their (oftentimes) unrealistic expectations, can be daunting.
Most people overspend or regret their purchases after the holiday season. How can you ensure your family can enjoy the holidays without the stress of the costs? Laura Meier, family trust attorney and author of The Family Nest Egg, can help with these simple budgeting tips that will help keep your spending on track so you can keep your holiday cheer. 
Tip #1- Make a list of all your anticipated purchases. Do this first before thinking about the cost of these items - we will get to that. This should include any travel costs like airfare, gas, car rental, lodging, and so on. You also want to make a list of anyone you are planning to buy a present for. Be sure to also include any entertainment related costs like a new dress for your holiday work party, or new Christmas tree ornaments. Having this list will help you see where you are planning on spending your money.
Tip #2- Assign a dollar amount. After you make your list of anticipated purchases, assign a dollar amount next to that purchase so you can get a general idea of how much things are going to cost. If you aren’t totally sure, go back and look at your statement from last year, or do a quick online search. Knowing how much these items will cost is critical to setting up your holiday budget.
Tip #3- Strategize on how to reduce the cost of each item. Most of us find ourselves short of having the money we need to cover all our anticipated purchases. That means that for each item, we need to ask, how can I get this for less? For example, if you found that airfare was too much on your desired travel dates, try to celebrate with your loved ones on a different day. Or maybe you found that all these little costs like wrapping paper are adding up. Well, I know someone who uses newspaper to wrap gifts with a cute little bow and says it brings an anthropology vibe to her Christmas tree. Also look for sale days or incentive days on gifts you are buying. Look at ways to reduce the cost of every item on your list to save money.
Tip #4- Prioritize your Expenditures. Once you have your list, know the cost, and how you can reduce costs, if you are still falling short, you are going to need to prioritize. I guarantee your sister would rather have your child get a gift over her. You really need to prioritize the items on your list and see what you actually want money for most. Rank those anticipated purchases in order and you’ll start to see the main things on top that matter most to you. If you find yourself falling short, you’ll visually be able to see what needs to fall off that list at the bottom. Whatever you do, don't borrow money from your next Christmas by swiping your credit card to pay for this one!
Tip #5- Keep the bigger picture in mind. The holidays are about experiencing love and peace in our homes, in our community, and in the world. Sure, your sister will love that new sweater you buy her, or your child will love that new video game, but come time next year that sweater will likely be in that giveaway box and that video game will be unpopular. Don’t trade the joy and happiness that this holiday season is meant to bring because you’re too stressed out about money. Sit down before the holiday season even begins and make a list with your kids of everything you’re grateful for and that alone will help you set the right tone and expectations for a wonderful holiday season.
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