Whether your holiday traditions involve gathering around the menorah, the kinara, the Christmas tree or something all your own, we’ve gathered practical tips to manage your holiday spending.

1. Create a holiday budget and stick to it

Making a clear holiday budget minimizes the chance of overspending. First, make a list of all your purchases, including gifts (or gelt or zawadi), food, beverages, decorations, ceremonial items, travel and other holiday expenses. Then break down how much you can spend for each item. Once you’ve made a budget, check in after each holiday purchase to stay on track.

Make tracking your expenses simple with a budgeting tool. You can find plenty of apps on your phone or tablet.

Understanding your current cash flow (the money going in and out of your bank account) helps you make a holiday budget that works for you. Use this budget worksheet to give you a better understanding of what goes in and out of your bank account during the holidays and all year long.

2. Plan ahead for the holidays

Getting an early start on holiday preparations prevents last minute decisions, impulse buys and overspending. Identify what holiday purchases can be purchased ahead of time, and look out for sales that allow you to save.

You can also plan ahead by saving a little each month throughout the year to create a holiday fund. Then when your celebrations come, you’ll have savings to use for your holiday spending, instead of dipping into funds you need for regular expenses. You can set up an automatic transfer to come out of your chequing account into your savings account each month—check out our mobile or online banking tutorials for a set-by-step guide. 

If you know you’ll be getting a holiday bonus, make a plan ahead of time that breaks down how much to save, pay off debt and spend during the holidays. This way, your well-earned money is working for you. 

3. Set holiday gift price limits and expectations

If exchanging gifts is a custom for you, have a conversation with your family and friends about price limits and set clear expectations. If you have a large family or group of friends, you can draw names at random and purchase a more substantial gift for that one person.

If your traditions don’t prescribe a specific type of gift, explore creating handmade gifts to save money and add an extra layer of meaning. You can also look into supporting local businesses by buying gifts made in Alberta.