Though the holiday season is a time for happiness, gratitude, and love, it can also bring with it significant financial strain. The pressure to buy wonderful gifts for friends and family can lead to overspending and an incredibly stressful January. To combat this, many people spread their Christmas spending throughout the year.
However, though this method reduces January's money troubles, it has its unique drawbacks. But if you don’t do your Christmas shopping throughout the year, what should you do? In this article, we’ll take a look at which method might work for you, and how you can be a smart spender in the run-up to Christmas 2024.
The Pros of Doing Your Christmas Shopping Throughout the Year
If so many people choose to spread their Christmas shopping over the preceding twelve months, it must have a lot of advantages. Let’s take a look at some of these benefits now.
Seasonal Sales - Christmas sales provide hefty discounts, but they’re nothing compared to those in the New Year. Spreading out your holiday shopping means you can take advantage of these price reductions, plus any voucher codes or other discounts you might come across throughout the year, and save money.
Thoughtful Purchases - Rather than rushing to buy a last-minute gift for your third cousin, spreading out your Christmas shopping allows you to put thought into every present you buy. Additionally, with less chance of sell-outs, your family and friends will get the exact gifts they wanted thanks to your proactive purchases.
Cash Flow Management - Of course, the biggest pro of Christmas shopping throughout the year is the ability to budget. After every payday, you can set aside some cash to buy one or two presents without affecting your necessary outgoings. Not to mention, if you come up against surprise payments in the winter months, they won’t impact your ability to buy gifts as much.
Year-round Christmas shopping is a strategic way to manage your finances while ensuring the holidays are plentiful. But, as mentioned, there are some disadvantages to this idea.
The Cons of Doing Your Christmas Shopping Throughout the Year
Even though Christmas shopping year-round can relieve financial stress, only 16% of Americans use this method. So, let’s take a look at why Christmas shopping in all seasons might not be right for you.
Changing Tastes - Asking your loved ones what they want for Christmas after you’ve taken down the decorations comes with some issues. They might not know what they want, and they might not want to think about Christmas at all. This can make buying the right gift quite hard, especially if the product they want won’t be released until the next holiday season, dashing all your diligent budgeting when it’s barely begun.
Lack of Holiday Spirit - Similarly, going Christmas shopping in the height of summer and hiding gifts at the back of your wardrobe can take away your holiday spirit. Spreading your Christmas shopping throughout the year often means sacrificing your enjoyment of the season so your loved ones can enjoy theirs. After all, even though it may be a sound financial decision not to, shopping in the holiday season is so much fun.
Overspending - With better financial management and more chances to budget throughout the year, you might find yourself deviating from your spending plan and making impulse purchases. You might also lose track of how much you’ve spent, and find yourself in the same position as you would’ve been if you’d made your purchases in November and December.
So, while spreading your Christmas purchases out throughout the year can stop the January stress, you might need to give up your holiday spirit and pay very close attention to your spending.
Deciding Which Method Suits You
Now you know the pros and cons of spreading your shopping out, it’s time to decide whether it’s the right thing for you and your family. Here are some questions to help you make your choice.
What is your usual financial situation in December?
If you often find that money is tight at the end of the year, spreading your Christmas shopping out is the best choice. However, if lump-sum purchases like servicing your car or insurance premiums are made well before December, you may have more wiggle room to buy gifts during the holiday season.
Do you prefer to spend or save?
If you don’t mind saving money throughout the year, there’s no reason you can’t leave your shopping until the holiday season. Or, if you prefer to spend a little every month, holiday shopping throughout the year is the method for you.
Can you keep organized throughout the year?
If you enjoy planning and can keep track of purchases without overspending, doing your Christmas shopping throughout the year is a good idea. However, if you work best under tight deadlines, you might thrive doing your shopping in December.
Do you have space to store presents?
Buying a few Christmas gifts every month requires a lot of storage space to keep them in good condition. If you simply don’t have room, doing your holiday shopping toward the end of the year is best.
What are your gift-giving preferences?
If you enjoy curating special, personalized gifts, you might need more time to buy throughout the year. However, if you get inspiration and present ideas from the holiday atmosphere, it’s best to leave purchases until December.
Tips to Manage the Holiday Season Spending Stress
Finally, here are some extra tricks that will help you, whether or not you decide to do your Christmas shopping throughout the year.
1. Budgeting
First, you’ll need to determine how much you can spend on Christmas shopping. Then, break this down further into categories like gifts, decorations, food, travel, and other expenses, and set spending limits for each. Use a budgeting app like Emma or Moneyhub to keep track of your spending, and monitor how much money you have left to spend in each category. If you haven’t found a gift for grandma yet, but have some money left over in the decorations category, there’s no reason you can’t forgo a wreath in favor of some new slippers. Make sure to factor in often-overlooked expenses like gift wrap and shipping costs too.
2. Set Expectations
Christmas is a magical time for children, and waking up to find every present on their list beneath the tree is sure to put a smile on their faces. However, meeting these high expectations can be an extra worry for parents, on top of all the ensuing financial stress. Avoid these issues by setting your children’s expectations early. Let them know they can choose one big present and one little present to put on their list. After all, Santa’s sacks are getting smaller, and the reindeer will be very grateful if you all help to lighten the load.
3. Minimize Gift-Giving
Games like Secret Santa can be a great way to minimize your spending on Christmas gifts, especially if you have a large group of friends or want to buy presents for your colleagues too. This is also a great way to ensure you put a lot of thought into gifts and make your recipient’s Christmas extra special. Remember to set a maximum spending limit that no one can exceed.
4. Invest in Reusables
While a real Christmas tree can bring an unbeatable holiday atmosphere to your home, a fake Christmas tree will last for years, be much easier to set up, and won’t drop pine needles onto your carpet. It’ll also be much cheaper in the long run, especially when coupled with a fake wreath, a reusable centerpiece, and durable baubles. Investing in high-quality decorations may require some tight budgeting in your first year, but it will make preparing for every subsequent Christmas efficient and stress-free.
5. Don’t Forget to Enjoy Yourself
It’s so easy to get caught up in making sure your family and friends have a great Christmas that you can forget to make the most of your own. Take a break now and again to enjoy the holiday atmosphere and make memories with your loved ones. And remember to treat yourself to a little something you’ve wanted all year, too.
In Conclusion…
Christmas can so easily go from a magical season to one of financial stress, resulting in a worry-filled New Year. Doing your Christmas shopping throughout the year can change this, allowing you to take advantage of seasonal sales, think long and hard about gifts for your family, and budget appropriately. But, this method can also result in overspending and a lack of holiday spirit.
Deciding which method works for you and your finances will take some time. On the one hand, Christmas shopping year-round requires a lot of planning and organization, but it will pay off in the long run. On the other hand, it also necessitates significant storage space and asking others for their gift lists early in the year. For the best of both worlds, saving a little every month to do your Christmas shopping during the holiday season means you can enjoy this special time while avoiding financial strain.
Whatever you decide to do, make sure to budget effectively, set expectations, invest in high-quality decorations that you can reuse next year, and have fun. Effective financial planning, even at Christmas, is always a good idea, allowing you to approach the season with joy and cheer. Good luck!
Sources and Resources
- https://nimbl.com/blog/should-you-start-thinking-about-christmas-shopping-now
- https://tiphero.com/christmas-shopping-year-round
- https://www.moneysavingexpert.com/shopping/christmas-savings/
- https://www.thetimes.co.uk/money-mentor/income-budgeting/9-ways-to-prepare-for-christmas-spending
- https://wmgcares.com/preparing-your-finances-for-christmas/
- https://www.wealthatwork.co.uk/corporate/2023/11/13/top-10-tips-for-managing-money-this-festive-season/
- https://www.goodhousekeeping.com/uk/consumer-advice/money/a30196923/how-to-save-money-christmas/
- https://www.thetimes.co.uk/money-mentor/income-budgeting/how-to-budget/best-budgeting-apps
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