You are reading the Original Version (CLB5+) Read Simple Version (CLB3-4) Dreading the holidays because of the expenses? The cost of gifts, hosting parties and other holiday activities can pile up. If you’re worried about your finances, cheer up! With a little planning and creativity, there are ways that you can still have the best time without breaking the bank. We’ve compiled our top tips so you don’t start the new year in debt: It’s always good to start early when planning for the holidays. Start a month or two earlier (six months earlier if you plan to travel) and think of your possible expenses. List them down. Make an estimate for each item. Adjust your spending but do your best not to spend beyond your budget. Make your estimate realistic but not too strict so that you won’t feel frustrated. Review your monthly expenses. Find items you can totally cut or reduce. A little savings here and there can amount to a lot especially if you start early. Know the gift-giving tradition at your community, school or workplace before you start shopping for gifts. In my home country, giving everyone little tokens is expected during the holidays. In Canada, this is not expected. Here, receiving a gift can sometimes be seen as an (unwanted) obligation. So before you start shopping, consider the following: Planning a party? Make it a potluck! It is practical and the variety of food ensures that everyone will find something that they’ll like. You may want to ask people what they’ll bring before the party to avoid duplication. And again, be mindful of people with food allergies and special diets. If you have the time and energy, consider taking a side job or starting a small business. There are many part-time jobs open during the season. You can try jobs in retail (cashier, stocking clerk, gift wrapping, etc.), call centres, delivery services, and other holiday helper jobs. If you are crafty, you might like to try creating holiday decorations or handmade gifts. The worst choice you can make is charging all your holiday expenses on your credit card. You’ll have a harder time keeping track of expenses. It will also make it easier to lose control of spending. Experts advise using cash for purchases so that you can actually see and feel how much you are spending. And if you do use your card, make sure to pay the entire amount on or before the cut-off date so you won’t have to pay interest. Don’t go to the mall for last-minute shopping. The chances of overspending is higher because you won’t have time to compare prices or think about your decisions thoroughly. Factor in the crowd and traffic, and you’re in for a highly stressful experience. December 26th is Boxing Day in Canada. This is when most stores offer big discounts on all kinds of merchandize. If your kids can hold off for one day, this is the best time to shop and get great prices for things like toys, electronics, clothes and other gifts. Starting early is the key. Experts advise starting holiday savings account as early as fall, right after your summer activities have died down. Once you have a budget in mind, you can start allotting a certain amount every payday to contribute to your holiday savings. If you are receiving your salary by direct deposit, you can ask your bank to program this for you by automatic debit. This way, you are assured that your savings are growing and earning interest. If you are planning on spending the holidays in your home country (or anywhere else), book your flights early. Prices are likely to be higher in December because it is the peak season for travelling. Start scouting for promotional ticket discounts six months before or earlier. It’s also the best time to use the air miles you have saved up. Happy vacation! Please login to tell us what you think.Skip to:
Set a budget
See where you can save
Be smart about gift-giving
Potluck parties
Make extra money
Don’t use your credit card
No last-minute shopping
Wait for Boxing Day
Things you can do earlier (tips to keep in mind to do next year)
Start a holiday savings account
Book tickets early
Sources: 6 ways to save for the holidays, Laureen Miles Brunelli, the balance; and 9 best ways to save money during the holiday season, Jacqueline Curtis, Money Crashers. Accessed November 8, 2018.We'd love to hear from you!