5 tips for saving money during the upcoming holidays
Every year, it is the same story. Presents to give and parties to host (and attend). Holiday season can take a hit on our bank accounts.
The truth is Canadians spend too much during the holiday season. Literature has backed it up. Need proof? Sure. Money was no object for Canadians during the 2015 holiday season as they overspent by $395 on average. Some more bad news: According to RBC’s annual 2016 post-holiday spending poll, the number of Canadians who are spending more than they expect to each holiday season continues to grow. Alas, it reached the highest point in five years this past December—41 per cent vs. 33 per cent in 2011. Geez, we need to take it easy with our spending spree.
Are you determined not to let the holidays derail your finances this year? Here are 5 tips to help you save money during the upcoming holidays.
Set a budget
There are numerous ways to create a budget and the way you want it is up to you but one thing is certain: you need a budget. For reasons I cant begin to fathom, many Canadians don’t create a budget for the holiday season. By setting a budget you will surely save money during the holidays.
List all the things you need to purchase such as gifts, food, decorations, parties, travel expenses, et cetera. Then set a budget and stick to it. If possible, add some extra money into your budget for unexpected costs.
Have a potluck
A potluck is an excellent theme used by many to save money during the holiday season. It makes sense. Serving a large holiday meal equals lots of work. Buying food for 35 people can get ungodly expensive and you will be responsible for all the food. Instead, ask your guests to bring a dish to share and everyone will enjoy tasting different kinds of food. Bonus: it will be a more lively meal, as everyone will be curious to know each other’s recipes.
Send e-cards
The time has come for us to forget traditional holiday cards. Send e-cards. They are FREE. Of course, some may cost you a couple of dollars but pick the free ones. Why pay for cards and postage when you can send e-cards for free. Heck, some even play music and can be customized with your family’s photos. Magic.
Use you reward points
Keep track of your reward points and use them. You have earned it. Duh. According to this Global News article, 51 percent of Canadians who collect points redeemed their rewards in 2015. This helped save shoppers an estimated $206 each. Not bad. A caveat: If you are using a rewards credit card, please make sure you pay off your credit card balance every month. Then, you can use the points you have earned with extra purchases.
Visit the dollar store
When it comes to wrap the gifts and stuff stockings, visit the dollar store. Dollar stores are a great place to load up on holiday wrapping papers and tape. You will save a lot of money by making a trip to the dollar store. Further, you can also buy toys from the dollar store for your kids especially if you have a toddler. A toddler will be happy to receive a toy. Period. They don’t care if it is from the dollar store or Toys “R” Us. Plus, I heard Toys “R” Us are filling for bankruptcy. Don’t go there this holiday season.