Unwrapping Holiday Money Management

The holidays are often called the most wonderful time of the year. For many consumers, they can also be the most stressful, especially when it comes to managing money. The pressure to buy gifts, host gatherings, and travel can quickly add up, leaving your budget stretched thin and your stress levels high.

The result? Many people face credit card debt and struggle to recover well into the new year. But it doesn't have to be this way. With some thoughtful planning, you can enjoy the holidays without letting financial worries take over.

Whether or not financial stress is part of your holiday season, these actionable steps can help you manage the financial challenges of the season.

Creating a Realistic Holiday Budget

Many consumers don't budget ahead of time for their holiday spending, which can often lead to post-holiday financial headaches. A well-thought-out budget could save you from debt and regret.

• Start with a total you can afford without borrowing, then divide that amount into categories.
• Make a gift list with a spending limit for each person you plan to shop for and keep a running total throughout the season so you can monitor your balance.
• Set aside a small cushion, such as 5-10% of your budget, for surprise expenses.

Do your best to stay on track without sacrificing the season's joy by planning what you need to get in advance and sticking to it.

Hidden Holiday Expenses

Hidden expenses, including interest charges and up-sells when shopping, can add up quickly.

• Make sure to factor in shipping and handling, gift wrappings and decorations, point-of-sales add-ons, and more when budgeting.
• Reaching free-shipping thresholds is a nice added perk, but don't place extra items to your cart to that push you out of budget just to avoid the charge.
• Review last year's financial statements to spot the expenses you forgot about.
• And remember, a holiday purchase carried on a credit card can cost more than the sticker price if you don't pay the balance off quickly.

Year-Round Shopping and Savings Strategies

Building on the idea of planning for the holidays in advance, tracking price drops and seasonal sales can help you stretch your dollar further and potentially reduce financial pressure around the holidays.

• Use price-tracking tools or price-drop alerts on bigger purchases and compare prices across several retailers.
• Post-holiday clearances are a good time to buy next year's wrapping paper, cards, and decorations.
• Consider rewards, cash back, or loyalty programs that could also help you cover your holiday shopping list.

Managing Financial Stress During the Holidays

Even in a joyous season, financial pressure can become overwhelming for many. But there are ways to reduce holiday stress.

• Replace some purchases with thoughtful, low-cost gifts, such as homemade treats, a framed photo, or a shared experience.
• Consider discussing holiday spending with family and friends to help ease holiday tension.
• Say no to the events or purchases that don't fit your plan and prioritize the events or purchases that matter most.

Be honest about your budget. Most friends and family would prefer that you stay financially healthy than overspend.

Whether you're looking to avoid holiday debt, find new ways to save, or feel more in control of your money, First Harvest offers financial options you can put to work now. Gain more borrowing power every season with our flexible personal loans tailored to your unique needs and budget.