CNBC reported “Millennials buy holiday gifts for themselves“and they are not the only ones. When you are buying gifts for yourself and others, it is not difficult to spend too much. One way to avoid overspending is to make a budget and set up a family gift-giving policy so that family members can hold each other accountable for sticking to it. If you think of a budget as a gift you give yourself, these limits might not seem tedious.
The holiday shopping budgeting method you use may vary; what is important is that you have some parameters in place. Otherwise, the temptation to spend freely may take over. Here are some ideas:
One list, one budget: You can make a list of gift recipients and the gifts you want to buy for them. Then you can research/estimate what the items will cost. Come up with an amount you want to spend for everyone on your list and stick to it.
One list, one price: You list all the people you are shopping for and then come up with the most you will spend on each person. If you don’t do all of your shopping at once, you may find that you do not reach the spending limit for each gift. Decide ahead of time if you will put that money back into the spending pool or save it.
Limited number of gifts: It can be tempting to buy a lot of gifts when you see a lot of things you know someone on your list will like. If setting a limited dollar amount won’t work for you, try setting a limit on the number of gifts you buy for each person on your list.
However you choose to budget this holiday season, the important thing is that you set some kind of limit for yourself and do your best to stick to it. Think of it as giving yourself the gift of financial peace of mind for the holidays and beyond.