Holiday shopping on a budget

ELENI KOPSAFTIS

Running low on finances this holiday season? Don’t worry! If you were planning on handing out gifts this year, there are lots of ways that you can budget for the holidays by taking a realistic look at your earnings, planning out your gifts in advance, scoping out shops, and setting up a payment method.

Whether you're a student or currently in between paychecks, keep in mind that you can always communicate to your loved ones that gift-giving is simply not in your budget this year. Instead, let them know that you’d love to celebrate the holidays with them in other ways, such as by visiting and sharing a meal together.

Without further ado, here are some things to consider before going holiday shopping.

Before doing anything else, figure out what you usually earn and spend in a month. Earnings include pay from your job, scholarships, and benefits, while spending includes rent, groceries, bills, and so on. Once you have an idea what your December earnings and expenses are going to look like, you can plan your gift budget.

If your budget is tight and it looks like you can’t afford gifts this year, don’t panic. If possible, scale back your spending on some aspects of your budget, such as clothing or groceries. If you haven't before, consider getting clothes you need at thrift stores or checking out dollar stores for some of your food items.

Next, start figuring out exactly what amount you’ll be spending on certain people. If you have any siblings, you can each chip in a small amount towards one big gift for your parents. Have any baby nieces and nephews? Don’t allocate a ton of your budget to them; young kids aren’t going to fuss over what you spent on them so long as they find the gift fun.

Overall, you’re going to want to set a specific maximum price for each gift you’ll be paying for. That way, you can stick to your budget and hold yourself accountable.

Now that you have the budget figured out, you can start thinking about what you’ll be buying. Naturally, you’re going to have to stick to the spending limits you set up earlier. Sure, your little sister might really want a Nintendo Switch this year, but that might not fit with the $30 budget you set aside for her. Find out what other things she's interested in, and pick one that's more budget friendly.

You’ll also want to do your research about more cost-effective alternatives before you select the perfect gift. For example, if you’re opting for homemade crafts this year, look up what materials you’ll need and if you can substitute any of them for cheaper alternatives. Or if you’re getting someone an electronic, look into used or older models. Usually, the last two versions of a device have similar features to the latest one, and they’re often cheaper too.

As you’re looking around for gift ideas, don’t be afraid to tweak your budget. Sometimes you might end up paying less for one person’s gift, which then lets you spend a bit more on someone else. Just don’t go over the total maximum spending limit you set up for yourself.

First thing’s first: Do not dip into any of your emergency savings for the holidays. As much as you might want to get someone the perfect gift, it’s not worth risking the money that you’ve reserved for urgent situations. Emergencies can still happen during the holiday season.

Instead, look into your more viable options. Your regular bank accounts, store rewards, and credit cards are what you’ll want to be using. These options make it easy to keep track of the exact amount you're spending through bank apps and online store accounts.

On the day you go out to do your shopping, consider taking the exact amount of cash you plan to be spending, and intend to only use that cash. This way, you won’t be able to go over your budget, as you’ll have a limited amount of money to spend.

Also, make sure that you hold onto any receipts. On the off chance that one of your items turns out to be defective, broken, or if your gift recipient simply doesn’t want it, you’ll be able to get some money back through a refund.

Budgeting is tough, especially if you’re a student, so don’t overextend your wallet this season. Expensive gifts aren’t necessarily better gifts, and if you’re in a really tight spot financially, just make a point to spend time with loved ones virtually or otherwise this year. Go easy on yourself, and, above all, enjoy the festivities of the season!