Written by: Christine Luken, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
With inflation and the state of the economy, you might be looking for ways to rein in holiday spending. How can you be smart with your spending while still enjoying yourself this holiday season? It’s helpful to first examine why you might be tempted to blow your budget this time of year.
All spending is emotional at some level, but the holidays seem to add an extra level of intensity! Healthy holiday spending is mindful, intentional, and fun. Unhealthy spending is driven by fear, guilt, and pressure.
Family dynamics and expectations can cause you to spend more than you intended because you don’t want to disappoint your loved ones. I’ve coached couples who felt like they’d let their extended family down if they didn’t participate in lavish gift-giving or big holiday vacations. There can be pressure to maintain family traditions because “We’ve always done it this way.”
Guilt can also be a negative driver of emotional spending. I typically see this with parents who are trying to make it up to their kids for “having a rough year.” Maybe one of the parents was traveling and away from the family much of the time because of work. Overspending on kids the first Christmas after a divorce is common, too. So, how can you rein in holiday spending, especially when emotions are high?
3 Steps to Rein in Holiday Spending
Create a Holiday Budget
Decide on a total amount you can reasonably afford to spend on the holidays without going into debt. Make a list of all the people you want to purchase gifts for and assign a limit for each person. (Maybe even consider giving the gift of financial literacy to your loved ones this year!)
Your holiday budget should include more than just gifts. Don’t forget expenses related to decorating, entertaining, travel, and family outings. Whether you make your holiday budget on your phone or on paper, be sure to have it with you when go shopping.
Set Clear Expectations Early
If you’re going to deviate from previous years’ traditions or norms, have discussions with your family early. You might suggest pulling names for gifts instead of each person having to buy for everyone. Other family members might be financially stressed, so this could be a relief for them, too. Frame the discussions positively and honestly.
Say something like, “This year, we’ve decided not to travel for the holidays so we can stay debt free and within our budget.” You might get some pushback from well-meaning relatives, so be prepared to respond kindly, yet stick to your plan.
Practice Mindful Spending
Practicing mindful spending is something you can do year-round, not just during holiday time. As you’re shopping, when emotions like guilt, pressure, or even excitement rise up in your body, stop and take a deep breath. Ask yourself, “Why am I feeling this? Is there another way for me to meet this emotional need without money being involved?”
By putting these three steps into practice, you’ll be able to rein in holiday spending, and not let your emotions get the best of you. This means no post-holiday credit card hangover! It’s also wise to remind yourself that what your friends and family want most from you is your presence this holiday season, not just your presents.
If you want more tips on how to master your emotions with your personal finances, tune into the Money is Emotional Podcast, available on your favorite podcast platform.
Christine Luken, Executive Contributor Brainz Magazine
Ready for money to support your happiness, rather than stress you out? Then you need Christine Luken, Financial Dignity® Coach in your corner! As the Founder of the Financial Dignity® Movement, Christine has coached hundreds of high-earning professionals, business owners, and divorcing women to pay off staggering amounts of debt and massively increase their net worth. The author of several books, including Money is Emotional and Financial Dignity® After Divorce, Christine blends wise money management with emotional intelligence.
