How to Avoid Overspending at Christmas

Overspending during the holiday season is one of the greatest budget pitfalls. If you're still owing on last year's gift purchases by the time the next holiday season rolls around, your overspending is a serious problem. Though the holidays are supposed to be a blessed time of family, friends, loving and giving, it should not be a time that creates stress and guilt by weakening your financial health.

Difficulty: Moderate

Instructions

1. Budget. Determine how many gifts you need to purchase how much you can afford to contribute during the holiday season.

2. Develop an itemized gift list naming recipients, and how much you will allow yourself to spend on each item based on the budget created.

3. Forego gift giving and instead plan a family party focusing on great food, storytelling and reminiscing, socializing, and having fun. Plan games or activities if you'd like a more structured atmosphere.

4. Donate a smaller amount of money individually, creating a larger donation as a family to your favorite charity instead of giving gifts.

5. Set a gift spending limit of $10 or less, or decide to do favors or give services to each other rather than purchasing items. Gift ideas might include car washes, babysitting, housecleaning, home repairs, hair cuts or coloring, lawn mowing, etc.

6. Involve kids in making homemade gifts. Your wallet will thank you, and you'll be teaching children a valuable lesson about giving.

7. Give the gift of health. As a family, purchase a gym membership or take on another health-inducing effort as a group.

8. Never give in to impulse purchases.

9. Follow your budget strictly.

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