Holiday Budgeting Tips for Seniors
Written by TYE Medical on Dec 5th 2023
As inflation sets in and the holidays approach, you might be worried about how to manage your budget. This is especially true if you’re newly retired or your income has recently dropped off. But some planning and money-saving tips can help keep you from adding to your debt and help you enjoy the holidays fully. The following holiday budgeting tips can help you navigate a financial crunch while still giving generously and appropriately this holiday season even on a fixed income.
Create a Holiday Budget
You can’t budget without a budget. A holiday budget includes more than a gift budget. It’s easy to make the mistake of budgeting for gifts while forgetting about all the additional holiday expenses related to travel, additional groceries, décor, holiday events, etc. This all-inclusive holiday budget can prevent overspending during the holiday season. For additional on avoiding stress during the holidays, read our article, 8 Ways to Beat Stress and Enjoy the Season.
How to Create Your Holiday Budget
Analyze Last Year’s Spending
This will give you a spending baseline to help you determine how much cash you’ll need to have available this year. But it’s also important to consider if you want to spend the same amount this year. Did you go a little overboard with gifts for your grandkids last year? Did you have travel expenses you won’t have this year? How much money do you have available to spend this year? You will need to trim this year’s holiday budget accordingly.
Set Category Spending Limits
Once you’ve set your budget or holiday spending limit, you can determine how you’ll spend it this year. As you review last year’s expenses, notice the types of things you spend money on during the holiday season. Categorize those expenses and consider how they might be different this year. Once you decide your spending categories for this season, list them out.
For example, you might have holiday budget categories like this:
- Gifts (for family, friends, neighbors, etc.)
- Grocery (cooking, baking, and purchased food items)
- Holiday decorations
- Travel expense
- Party supplies
- Donations
- Holiday events
- Wrapping supplies and cards
Once you’ve decided on your holiday spending categories, you can allot a budget to each, ensuring that the total of all categories doesn’t surpass your overall holiday budget.
Stick to Your Holiday Budget
Before spending, take a few days to consider if anything is missing from your budget. Show your category list to your spouse, family member, or friend. They might see something you forgot about. But if it turns out that you forgot something, don’t panic. You will just need to adjust other budget categories to accommodate the additional expense.
More than likely, impulse buying will be your budget’s biggest enemy. It’s good to have a plan to avoid making unplanned purchases on the fly. And while not every impulse buy is a bad thing, you’ll definitely want a plan to minimize them.
Minimize Impulse Buys During the Holidays
Here are some guidelines to help you curb the urge to buy off budget.
Set a limit for everyone on your gift list. You already set a gift budget, but to avoid overspending on individual gifts, it’s best to set a limit for each person. Divide your gift budget between everyone on your list. Of course, it’s okay to spend more on some than on others as long as you stay inside the overall gift budget.
Plan to impulse buy. If you know you’re likely to snap up some unplanned gifts, allot some money for this in your budget. This can help reduce guilt and anxiety, especially if your impulse buys are just the right thing for someone.
Shop your list. Keep your list with you and refer to it often. This will keep you focused on your mission and your holiday budget.
Plan your holiday menu. Create a menu and grocery shopping list to help you avoid spending too much on ingredients or impulse buying at the grocery store. When you have a meal plan, you can look for coupons or sales to save money.
Track your spending. Try a free budget app. These apps let you input an overall holiday budget and spending categories. As you make purchases, you add them to the app, allowing you to see how much you’ve spent in each category and how much you have available to spend. Try the free version of Every Dollar from Ramsey Solutions.
Seniors Can Master Holiday Budgeting
Forethought and planning are key. Set aside some quiet time to analyze your expenses and create your budget. Just remember to be specific with your categories and gift budgets. It’s important that you know exactly who you are buying for and how much you are spending on each person.
Be sure to download your budgeting app and get a meal plan too. These are key to staying on track with your holiday spending and avoiding debt.
Looking for additional holiday tips? Check out our article, Complete Guide to Surviving the Holidays with Incontinence.
