For many people, the holiday season is a time to celebrate with family and exchange gifts. While it is fun to give and receive gifts, holiday spending can create unneeded stress.

Practicing financial health strategies before and during the holidays can reduce stress and help you start the new year on good financial footing. Here are tips that can help you remain generous during the holidays without breaking the bank.

Decide on your budget. Review receipts or statements from last year to see what you are truly able to afford. Did your spending give you stress? Try to make a more realistic budget for this year.

Make a gift list. Prioritize who you want to buy gifts for. Immediate family will be the top priority, then your closest circle of friends. Assign a dollar amount to each person so that it all adds up to your budget.

Don’t forget other holiday expenses. Gift wrap, postage, travel and food and drinks for holiday parties add up. Be sure to include them in your budget!

Limit credit card use. Avoiding debt for holiday spending is one way to reduce holiday stress. If you must use a credit card, take only the one you will use for holiday spending while out shopping. Check your statements later to make sure no unauthorized charges appear.

If you have them, use your credit card points. If you have been careful about using credit cards all year and have racked up some points, redeem them for holiday gifts!

Think about joint gifts. Consider splitting the cost of a gift or experience for a loved one. For example, consider asking your siblings to split the cost of a gift for your parents. It doesn’t have to be expensive, but something you can share the pleasure of giving as a group.

Guard against buying on impulse. Stick to the list you made in the beginning. If you need to add someone, adjust the amounts you budgeted for everyone else to compensate.

Start shopping early and buy local. Keep your eyes open for bargains throughout the year. You may find the perfect gift for someone at a discount, giving your budget for everyone else a little more flexibility. And by shopping at local businesses, you may find unique, meaningful gifts that the big box stores don’t sell.

Donate in someone’s name. Do you know someone who is hard to buy for? If they are active in a local organization such as a soup kitchen or animal shelter, make a donation in their name. You are supporting a cause that means something to them and acknowledging your friend’s generous heart.

Sources:
American Bankers Association
American Psychological Association