How to keep a holiday budget
Gain control over your money with holiday budgeting tips such as the 52 week challenge and more.
Whether it's Thanksgiving or Christmas, the holidays can sneak up fast. Planning ahead and budgeting for the holidays can help. Here are a few facts and ideas to consider when preparing for holiday spending.
Holiday budgeting by the numbers
- 56% of Americans set a budget for holiday spending — but only 64% stuck to it.
- $998 is spent on holiday items such as gifts, food, decorations and other related purchases.
- $311.75 is spent over the Thanksgiving weekend, which includes Black Friday and Cyber Monday.
- $218 is the average amount grandparents spend on holiday gifts for their grandkids.
- $46.90 is the average cost of a Thanksgiving feast for 10.
- $731 is the cash back qualifying cardholders could apply to holiday spending based on a 2% cash back rewards card and $36,560 that the average U.S. household could put on their credit card each year.
- $1,378 could be saved through the year to spend on the holiday using the 52 week challenge: $1 the first week of the year, $2 the second week, and add a dollar ($1, $2, $3) each week through $52 on week 52.
- 5 years is the amount of time it would take to pay off $1,048 in credit card debt if you make the minimum payment of $25/month at 17% interest.
- 2 days is the amount of time experts say to wait before buying anything that's not essential.
More holiday budgeting ideas
- In your budget planner, include everything — not just gifts. Include party essentials, wrapping paper and cards.
- Create your shopping list ahead of time and watch pricing and sales for the best deals.
- Set some expectations with kids first (for example, something you want, something you need, something creative) to help manage expectations and your budget.
- Skip the credit cards and use a prepaid debit card.
- Think through online purchases, comparing them to your list and your budget rather than acting on impulse.
- Consider ways to save — without impacting your future. Secondhand stores, DIY options and even skipping gifts (talk about it first) can help trim overspending opportunities.
- Host a potluck holiday party to keep budgets under control or find out if others are interested in hosting it.
- Figure out your budget on January 1 and save the appropriate amount each month.
- Buy throughout the year as you see items on sale, and schedule monthly or weekly budget check-ins to keep your spending in control.
Keeping your holiday budget in check may take time, but finding effortless ways to save money makes it easier. To keep you safe during the holidays, check out our holiday safety tips article.
These calculators can help you to save and pay off debt:
Calculate ways to save money
Calculate your saving plan for large purchases
How to pay off debt
$998
The amount spent on holiday items such as gifts, food, decorations and other related purchases.1 The PLAN: In your budget planner, include everything — not just gifts; include party essentials, wrapping paper, and cards.1
$311.75
Amount U.S. consumers spend over the Thanksgiving weekend, which includes Black Friday and Cyber Monday.2 The PLAN: Skip the holiday hysteria: Create your list ahead of time and watch pricing and sales for the best deals.2
$218
Average amount grandparents spent on gifts for their grandchildren. The PLAN: Don't go in debt to pay for children's gifts. Pay cash, prepaid debit card or pay your credit card balance in full. If you don't, the amount you spend on gifts can be significantly more as interest piles on.3
5 Years
The amount of time it would take to pay off $1,048 in credit card debt if you make the minimum payment of $25/month at 17% interest.4 The PLAN: If you have debt or are tempted to go into debt, skip the credit cards and use cash or a prepaid debit card.4
2 Days
Time that experts say to wait before making an online purchase.5 The PLAN: Think through online purchases, comparing them to your list and your budget rather than acting on impulse.5
$731
Amount of annual cash back qualifying cardholders could apply to holiday spending. This is based on a 2% cash back rewards card, the $36,5646 that the average American household could put on their credit card each year and paying it off in full and on time each month. The PLAN: If you can pay off your credit card in full each month and get approved for a credit card that gives you cash back on your purchases, this annual amount could cover all or a portion of your holiday expenses.
$46.90
Average cost of ingredients for a traditional Thanksgiving meal for 10 people. The PLAN: Host or see if others would like to host a potluck holiday party to keep budgets under control.7
$1,378
Amount you'd save for the holidays by doing the 52-week challenge: $1 the first week of the year, $2 the second week, and add a dollar ($1, $2, $3) each week through $52 on week 52. The PLAN: Figure out your budget on January 1 and save the appropriate amount each month.
56.3%
% of Americans who set a budget for holiday spending. 64% of them stuck to their budget. The PLAN: Buy throughout the year as you see items on sale, and schedule monthly or weekly budget check-ins to keep spending in check.8
Need more help planning a budget or paying off a loan or credit card? View statefarm.com/simple-insights/calculators for a variety of helpful calculators.
1 https://nrf.com/topics/holiday-and-seasonal-trends/winter-holidays
2 https://nrf.com/media-center/press-releases/holiday-shoppers-take-advantage-early-thanksgiving-weekend-deals
3 https://www.opploans.com/oppu/articles/how-much-do-grandparents-spend-on-holiday-gifts/
4 https://www.ramseysolutions.com/budgeting/the-costly-christmas-mistake
5 https://blogues.desjardins.com/advicecentre/2019/08/tips-and-tricks-for-sticking-to-your-budget-and-saving.php
6 https://www.fool.com/the-ascent/credit-cards/articles/what-average-american-earn-per-year-credit-card-rewards/
7 https://www.fb.org/newsroom/farm-bureau-survey-thanksgiving-dinner-cost-down-4
8 https://www.fool.com/the-ascent/research/christmas-spending-statistics/
