Every year, there are certain holidays and special occasions that may obligate us to spending our hard, earned cash for gifts, meals, and decorations – maybe even fireworks. These holidays and special occasions include:
- New Year’s
- Valentine’s Day
- Easter
- Mother’s and Father’s Day
- Independence Day
- Halloween and All Saints Day
- Thanksgiving’s Day
- Christmas
- Birthdays
- Graduations
Day in and day out, we may not give these holidays and special occasions a second thought until they creep into our lives again, or when we flip the calendar. One step towards financial wellness is planning for life’s moments in advance.
The Gift Budget
Similar to a Health Savings Plan or Flexible Spending Account, you should spread out funds for your gift purchases over the year. Plan how much you plan to give in gifts all year, and only spend that amount. Spending $764 at Christmas or $126.03 for your Sweetheart on Valentine’s Day will seem less burdensome when it’s split into 12 easy payments to yourself, not your credit card.
In addition, consider a new tradition at Christmas – The Secret Santa Exchange. You’ll only need to buy one gift (or two if your families celebrate separately) and you’ll help your entire family save on expenses. Before Halloween (two months in advance), gather the names of all the participants, draw a name out of the hat, and spend no more than $25 on that person. You can even split the exchange between adults and kids so you can pass along the tradition to them.
Potlucks
Most of these special days are celebrated around food. Rather than cater or individually hosting a meal, opt for a potluck.
If you do celebrate at a restaurant, consider going dutch at family gathering to help ease the expenses on the entire family. Just be sure to discuss it in advance so you can avoid that awkward moment when you start to explain your journey to financial wellness.
Clothing and Costumes
Some holidays prompt us to purchase special clothing that we may never wear again. Growing up, the family spent a pretty penny on Easter dresses and wedding party dresses. Instead, consider purchasing an outfit you can wear again.
On Easter, durable spring dresses and outfits can be purchased for children. If you are planning for or standing in a wedding, the bride could allow her bridesmaids to select their own dresses, as long as it matches the color palette. For Halloween, consider purchasing costume pieces from a thrift store or resale shop. If you have random items lying around, you could always make your own homemade Halloween costume.
Electricity and Other Utilities
Most people may not consider this cost part of the Gift Budget, but if you’re the type that likes to decorate at Christmas like The Griswolds, you should plan for this cost in advance. Take a look at your utility bills and determine what it cost you to decorate your home for Christmas, for Halloween Haunted House, or that monthly inflatable in the front lawn.
Additionally, if you host family at your home during the year, the electricity and water cost should be factored in as well.
Debt Free Family Tree 