How much will you spend on Christmas this year?
December 1, 2011
Ah yes, the most wonderful time of the year. Christmas and the holidays mean different things to everyone, but most people can agree it's a great thing to celebrate. It brings us all together and forces us to get back into the spirit that we so looked forward to as kids.
However, Christmas has turned into something else for businesses. Mainly, it's the time of the year when retailers make almost 40% of their annual sales.
it's important to weigh the intentional commercialization of Christmas with the spirit of giving. I have to be careful to not let my lack of 'getting into the spirit' of buying crap get in the way of giving. I definitely love giving to my family and friends. I'm just in a battle against debt, and I don’t like how retailers use the spirit of the season to their advantage!
Anyway, enough of the rant… I believe in capitalism so I wouldn’t have the retailers do it any other way. The key is to control your spending and try your best to have a set amount.
What's the best way to control your spending on Christmas?
1. Create a list of everyone you want to give presents to
2. Estimate how much you will spend on each person
3. Compare your estimate to how much money you have
4. Adjust list as necessary
5. Take your list with you when shopping and use it!
You shouldn’t buy Christmas presents that will take the next 6 months to pay for! This isn't really giving… I'd hate to see the new bike you got for your youngest repo'd 
.
Another way to cut back is to not buy gifts for yourself! According to a recent article in the LA Times, "Self-gifting was also on the rise as 46% of Black Friday shoppers bought something for themselves, up from 35% last year, research firm NPD Group said." One for my family, one for me!
According to the National Retail Federation (the other NRF), "Nearly six in 10 holiday shoppers (59.9%) say they plan to take advantage of retailers’ sales and discounts to make additional non-gift purchases for themselves and their families." We find such great deals that we just can't pass them up… even if they won't end up under the tree.
The NRF study continues with, "The average person will spend approximately $130.43 during the holiday season to take advantage of sales and discounts on apparel, electronics, home goods and other items for themselves or a family member, up from $112.20 last year."
How much does the 'average person' spend on Christmas presents?
The same NRF report says the average shopper will spend $704.18 on gifts, which is actually down from last year’s $718.98.
This is the average for one person, so if you look at a couple the average is a little over $1,400 per year. We spent over that last year… so I guess we're above average. The chart below shows how the spending per person has fluctuated over the last seven years.
How are you paying for Christmas?
Ideally, you have saved money every month from January through December and have the full amount needed for Christmas already saved up. That was our plan this year. As each month passed we put our leftover cash budget into an envelope. However, when we were in the middle of renovations, we broke from this habit and then stole some from the envelope!
Luckily we have money saved up we could use, but my wife gets paid every two weeks and December is one of the months she'll get three paychecks, so we'll mostly use her extra paycheck. We'll try harder next year to not raid the Christmas fund.
You want the joyful parts of Christmas to remain after the holiday season (memories, time with family, etc), but don't rack up a bunch of debt that sticks around well past winter!
How much do you spend on Christmas? Leave your comments below
Comments
Christmas Budget
Giving is the best part of this time of year for me. It has been a serious challenge for me to really think about what I spend on my family, friends and we can't forget our co workers and employees. I have taken your advise and have put together a list of whom I am to buy for and how much would be appropriate to spend. It has really, really helpful. The self-gifting is an interesting part of this time of year. My self-gifting is all centered around holiday decorations. Because I collect them, it can pose a problem when I am out there working through my list. The good news is I have made a decision to only do a few very special items and have found a treasure in what I already have. Thanks for the advice and keep it coming. Happy Holidays, Susan Cooper
Susan - self-gifting can
Susan - self-gifting can definitely be a budget buster! We never really knew how much we spent on Christmas until we set down and figured it all out last year. The hardest part... keeping to your budget!
200 $ bucks
This year we told our parents not give us any fancy presents, because we can't afford to give them the same.
Misha, thanks for the
Misha, thanks for the comment. I'm sure your parents are totally ok with not receiving presents... especially since you explained why.
I will not be spending
I will not be spending anything this year. So turns, out I am flat broke. So if I dont' have money to pay for my bills what more for Christmas. That said, it will not damper my Christmas spirit. Because I look beyond material things anyway.
$200 max!
With each year I grow increasingly appreciative of the very laid-back gifting culture in my family. The rules are simple: If you want to give, and you can afford to do so, then do. Otherwise, don't. Cards and homemade gifts are just as appreciated (often more appreciated) than store-bought gifts. I buy $10-15 gifts for each of my neices and nephews (5 total). If I do anything for my parents and/or siblings I stick to $10-20, usually giving more to the siblings that could use a little financial help (usually in the form of gift cards for the stores they get their groceries from). Some years I only get gifts for the kids and hugs for the adults.
When times are lean (like last year, when I moved from WA to AK just before Thanksgiving) I can skip gifts altogether and nobody minds. All anyone wants is a phone call. The only pressure I feel to buy gifts comes from myself - and that's only because I have so much fun picking them out and wrapping them.
When I asked my mom what she wants for Christmas, she said she just wants all her kids to be happy. I think my dad actually prefers that I not buying anybody gifts because he takes as evidence that I'm being careful with my money.
I could easily spend $1000 on Christmas gifts. I choose not to because I, too, am trying to pay off my debt. Every penny spent on other stuff costs me interest.
Julie - thanks so much for
Julie - thanks so much for leaving your story. This is good to see because some of us almost need validation that it's ok not to spend a ton of money on Christmas. Many of us get stuck in the mindset that bigger is better... and we must not like the person very much if we don't spend very much money on them!
As you pointed out, most family members and friends would rather you save your money than spend it on a bunch of stuff they may not even need. My family was guilty of this up until this year. The adult children all purchased gifts for each other (four of us, three are married) and we usually just bought each other gift cards! This year each person will pick a name out of a hat so we'll go from 5 gifts to 2 gifts. This should also give us more time to actually spend on finding a fun and unique gift!
Post new comment