Budgeting During The Holidays

Parents know better than anyone that the holidays are the most wonderful time of the year...to blow a budget. Between purchasing countless gifts, hosting holiday parties, decorating the home and stocking up on festive attire for the whole family, the money seems to go faster than a plate of freshly-frosted Christmas cookies.

Since the bulk of holiday spending typically goes towards gifting, it’s especially important to work within a budget to keep on track. Even better? It takes only a few moments during a busy holiday season to teach kids how to gift thoughtfully, all while building valuable financial skills.

5 Steps to Make a Budget and Stick to it.

Kids can cross gifts off their list AND practice building a budget using these five steps.

1. Make a list of who they are buying for

Sit down together and write a list of everyone your child wants to remember this holiday season. Some kids might give to siblings, parents, grandparents, teachers, friends...or even pets!

2. Establish an overall budget

How many dollars does your kiddo have to spend? Discuss how much of the gifting money will be from his own dollars and how much you might match/contribute to the gifting budget.

3. Determine how much you can spend per person

You can even prioritize who might get a bigger gift allocation. With the budget in mind, review the list of gift receivers and agree on how much your child can spend toward each person on his list.

4. Get creative if budget is tight

Great gifts from young children don’t need to break the bank. From baked goods, to painted pottery, to handmade ornaments...when it comes to getting kids gifting, it really is the thought that counts.

5. Deliver the gifts!

Give out the gifts and watch your little gifter glow! As much as kids love receiving, they are always proud to hand over a heartfelt gift. When kids gift within a budget, they are gaining valuable financial experience that will pay off in their future.

Bonus

Want to take it a step further? Parents can let kids in on their own holiday budgeting decisions. When planning gifts for teachers, bus drivers, babysitters and coaches, parents should talk it through with their kids. By giving kids insight into their own holiday gift budget, parents are teaching them to give thoughtfully and modeling money smarts for the next generation.

Who would you like to give gifts to this holiday season? Let’s make a simple budget together and we can make a gifting plan.