It is the first Friday of October! So today we are going to talk about Budgeting For Christmas. Wait, what??
I know. I know. But it will be here before you know it and I got a really interesting question from a reader and got me thinking about budgeting for Christmas.
How do you guys budget for Christmas for the kids? I have a 5 year old and a 1 year old and I am trying to come up with a budget on how much to spend on them for Christmas. If you have any tips or advice it would be greatly appreciated!
It really is a great question.
As I thought about it I realized that I have never really set hard and firm rules for Christmas budgeting. I just have a number in mind and try not to exceed that.
Last year I think we spent a combined $65 on both of our children, who were really still babies. And to be honest we gave them too many things.
This is some advice I would give.
1. What to give?
This year we have a new policy.
Four gifts and none of them that big.
Something you want.
Something you need.
Something to wear.
Something to read.
I have heard of several people doing this and I LOVED the idea.
2. Make a line item in your budget.
First of all if you're not making a zero-based budget you should be. Learn more here.
Add Christmas to your budget just like you would anything else. Make a list of everyone you want to give a gift to and then create a gift list around the budget. NOT THE OTHER WAY AROUND!
3. Think of giving differently.
Gifts are great. I love them. But that is not the reason to celebrate Christmas. I am a Christian and I believe that Christmas is a season of worship and celebration. Gifts are a bonus.
Instead focus on creating lasting memories and traditions. I remember far more the fun things we did as a family than I do what I got under the tree.
What about you? How do you budget for Christmas? Tell in the comments below!