How to Save Money Over the Holidays

With the holiday season quickly approaching, you may have exciting festivities planned. Along with the joy of holiday cheer comes the stress of increased spending. Gift-giving, decorations, holiday travel, and festive feasts are all financially demanding. Even though we look forward to these celebrations every year, they come with increased expenses. These expenses can cause financial strain for even the best-planned holiday budgets. This does not mean you have to suffer and break the bank. Be strategic, inventive, and plan your holiday season. With this guide, you can discover how to save money over the holidays. This way, you will have a joyous and affordable festive season!

We will explore practical tips and strategies. Using these tactics, you will be able to manage your finances wisely during the holiday season. Whether it is a family vacation, a festive gathering, or a never-ending gift list, you can navigate the holidays with reduced stress. And with reduced stress, you can be more present with family and loved ones which is what the season is all about. While simultaneously knowing you have maintained your financial health. From DIY gift ideas to budget-friendly travel tips, there are a range of strategies to help you make the most of the holiday season. Learn some strategies for enjoying the holidays while sharing moments with loved ones below.

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Why are Canadians stressed about holiday spending this year?

Canada’s economy is experiencing a lot of unknowns. With high inflation, the anticipation of a recession, and high job loss, Canadians are feeling the tension. Deloitte has published a substantial 2023 Holiday Retail Outlook report. This is an annual forecast released by Deloitte to explore expected holiday retail spending. The 2023 report predicts significantly lower spending by Canadians. More specifically, Deloitte predicts the following for 2023:

• Consumers want to spend money smartly.
• Inflation is preventing spending on non-essentials.
• Canadians will seek out deals and sales more vigorously.
• 67% of Canadians are concerned about an upcoming recession.
• 55% of Canadians are feeling pressure from increased mortgage payments and rents.
• 33% of Canadians are worried about how they will pay for gifts.
• On average, Canadians will spend $1,347 on gift shopping in 2023.
  • This is an 11% drop from 2022.
  • Canadians planned to spend $1,841 in 2021 and $1,520 in 2022 for comparison.

Furthermore, key reasons Canadians stressed about holiday spending this year, include:

Economic Challenges

Economic conditions impact people’s ability and desire to spend during the holidays. Generally speaking, holiday spending is a luxury and dependent on disposable income. Economic downturns, job losses, or other financial challenges affect disposable income and therefore holiday spending. Deloitte’s forecast confirms Canadians are facing economic challenges.

Inflation

Canadians have experienced record-breaking inflation rates over the last few years. Further, they do not trust retailers. 73% of Canadians believe retailers are hiking prices unfairly. With the increased cost of living due to inflation, gifts and products cost more as well. Holiday expenses will be more burdensome for Canadians as a result.

Global Events

Global tensions can produce economic uncertainties. As seen with the war in Ukraine recently, global oil and gas prices skyrocketed. Continued global tensions can contribute to local prices of goods. Moreover, global tension could influence consumers’ spending or saving habits.

General Uncertainty

The above factors can contribute to overall uncertainty about the future. This includes job security and economic stability. With uncertain times, consumers begin utilizing cautious spending patterns. In addition, they may be motivated to build up a bigger emergency fund and generally become more bearish.

Ultimately, Canadians want to rein in their spending in response to everything happening in the financial landscape. This is to budget for worst-case scenarios. Many Canadians have already started to feel the significant pressures of the economy. While individual circumstances vary, holidays tend to be a stressful time of year. 2023 has seen significant economic stagnation and 2024 is predicted to be a period of increased stress. But keep reading to learn how to save money over the holidays to cope!

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How can I save money on the holidays?

Saving money during the holidays can be challenging. However, it is possible with some planning and discipline. Strategies like budgeting, setting realistic expectations, and focusing on holiday connections will help. Overall, the goal is to reduce the stress associated with holiday spending. Here are some tips to help you save money over the holidays:

1. Set a Budget

• Determine how much you can afford to spend. 
• Make categories for gifts, decorations, food, travel, and other holiday-related expenses.
• Base your budget on real prices by doing research online, not random estimates.

2. Make a List

• Create a list of the people you need to buy gifts for.
• Set a budget for each gift.
• Set a fixed number of gifts allotted to a person. 
• Come up with clear ideas of what you plan to give each person.
• Stick to your list while shopping to avoid impulse purchases.

3. Compare Prices

• Shop around and compare prices before making a purchase.
• Take advantage of sales, discounts, and promotions.

4. Consider DIY Gifts and Decorations

• Get creative and make some of your gifts. Handmade gifts can be thoughtful and cost-efficient.
• Homemade cookies, in a holiday tin, are always a welcomed gift. Homemade decorations can get your household into the holiday spirit. Here are some other ideas!

5. Participate in Secret Santa or White Elephant

• Consider drawing names for gift exchanges within your family or friend group instead of buying gifts for everyone individually. This reduces the number of gifts you need to buy.
• Secret Santa and White Elephant are great economical holiday gift-giving games. Draw Names will help organize your event.
• These games can add an enjoyable layer to your holiday while being more cost effective.

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6. Shop Early

• Start your holiday shopping early.
• There will be more deals to watch for, such as Black Friday sales.
• You avoid last-minute high-cost panic purchases.
• You can spread your holiday spending more evenly, instead of splurging all at once.

7. Use Cash or Debit

• Consider using cash or a debit card for your holiday purchases.
• This avoids accumulating credit card debt.
• It helps you stay within budget; you can only spend what you have available in your account.

8. Take Advantage of Rewards and Cashback

• If you use credit cards, use ones that offer rewards or cashback. 
• Make sure to pay off the balance to avoid interest charges.
• Points collected throughout the year can also be used towards gifts or holiday travel.

9. Host Potluck Dinners

• If you’re hosting a holiday gathering, make it a potluck. 
• Everyone contributes to the meal, reducing your overall expenses.
• Everyone will have a dish they truly enjoy and feel like they contributed to the meal.

10. Save on Wrapping

• Use recycled materials or simple wrapping paper to save on the cost of gift wrapping, such as newspaper, comic strips, or hand-drawn wrapping paper.
• Not only will this save money, it’s inventive!

Remember that the holidays are about spending time with loved ones, not materialism and consumerism (it can be hard to forget this!) Thoughtful gestures often mean more than expensive gifts. If you have kids, this can be a great time to explain this concept to them since they often get caught up in gifts, not being together as a family. By planning and being mindful of your spending, you can enjoy the holiday season without breaking the bank.

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How can I save money on a family holiday?

Holiday seasons often mean holiday travels to see friends and family. Whether this is a big trip or a road trip back to your hometown, it is an added expense. Saving money on a family travel holiday involves careful planning. You should have a budget in mind. Then make smart choices to get the most value for your money. Here are some tips to help you save money on your family vacation:

1. Plan and Book in Advance

• Plan your trip well in advance to take advantage of early booking discounts. This will help you stay within a realistic budget.
• Consider transportation, accommodation, meals, and activities when making a realistic budget.
• Seek out deals. Check flights regularly and seek family packages. 
• Consolidate expenses with other travelers, such as renting a car with someone else.

2. Consider Alternative Accommodations or All-Inclusive Trips

• Explore options like independent vacation rentals or family-friendly hostels.
• This may allow you to shop for groceries and cook your own meals cheaply.
• All-inclusive trips will allow you to avoid additional expenses and buy in bulk.

3. Take Advantage of Free Activities

• Research and plan activities that are free or low-cost.
• This includes exploring parks, hiking trails, or enjoying public events.

4. Travel During Off-Peak Times

• Consider travelling ahead of or after the holiday season, such as late November, early December or January.
• While it’s nice to be with family during the holiday season, travel is significantly more costly at peak times.
• You can still see family before or after the holiday season and make it special to save money.

By planning, being flexible, and making strategic choices, you will enjoy a memorable holiday vacation. You can further avoid breaking the bank. Remember to prioritize experiences and quality time with loved ones. This will allow you to avoid unnecessary expenses. 

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What’s your favourite way of saving money during the holidays?

One of the most reliable ways to save money during the holidays is to create a detailed budget. This should outline your planned spending on gifts, decorations, food, and other expenses. The budget should be realistic and based on what you can afford. By allocating specific amounts to different categories, you can avoid overspending. In addition, sitting down and defining a plan makes room for creativity in how you save money over the holidays. How are you saving money this holiday season?

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