The most wonderful (and pricey) time of the year

It’s the most expensive time of the year. The holidays are right around the corner, and for many, it’s a joyous time of connection and celebration. But it also comes with a hefty price tag. With inflation at around three per cent, many Manitobans can’t keep up. It’s already been a pricey year and now there are parties to host, places to go and gifts to buy. With it all comes external and internal pressures to impress your friends, wow your children and spoil your parents.

It’s unfortunate when some people feel so overwhelmed they don’t enjoy the true magic of this time of year. They feel compelled to participate, even if it means falling further in debt and giving up peace of mind.

But there are things you can do to lessen the burden. By planning now, you can get ahead of the rush in December. Take a look at your income and expenses and determine exactly what you can afford this holiday season. If it’s not much, don’t worry! There are creative ways to stay on track.

Consider proposing a Secret Santa or White Elephant gift exchange for one of your gatherings this year. Others feeling the pinch may be grateful you do and these are also ways to add some fun and games to the holiday revelry. There are free online platforms, such as Elfster, that can help you get started. This can turn gift-giving for six to seven people into a single gift, effectively reducing expenses to a fraction. Remember to set a spending limit so everyone is on the same page and you can stay within your budget.

You might also consider a home-made gift exchange, which has become popular in recent years. It helps everyone flex their creative muscles, give something meaningful, and you save a dollar or two while you’re at it. Another popular one is giving a service or experience. You can come to an agreement with your significant other to not exchange gifts and instead count your next trip as part of your holiday presents to each other.

Remember to stay on track in all the holiday rush. Once your budget is created and your recipient list is set, decide how much you can realistically spend on each person. As you shop, remember to mark down what you’re buying and the cost so that impulse purchases don’t send you over the top. Once you’ve reached your maximum for a designated person, resist the urge to keep buying as it will only send you over.

Another part of your holiday planning should be for trip-related expenses. Have a lot of out-of-town destinations to see family and friends? Be sure to account for gas, airfare, hotels and extra take-out meals. See what expenses you can reduce in the interim to be able to afford some of your non-negotiable holiday plans.

And while this may all sound like a bore, it will save you a lot of stress and financial pains in the long term. You may find and create new holiday traditions that everyone loves in the process and gift-buying can become more enjoyable, knowing you’ll check all your boxes without signing up for more debt.