WS Chronicle

By Aniya Ellison

The holidays are here! It’s important to keep your finances in mind as you prepare your shopping list this holiday season. A small amount of planning can go a long way to avoid spending more than you can afford. 

With the excitement of traditions and gift giving, it’s easy to rack up holiday debt. Last year, 36% of consumers went into debt, owing an average of $1,249, according to a survey by LendingTree. Nearly 45% of borrowers tried to consolidate their debt or open a balance transfer credit card when paying the debt off quickly wasn’t an option. 

To save on holiday spending and prevent debt in the new year, here are some steps to build a holiday budget. 

Start Planning. It’s never too early or late to build a plan for your finances. To plan for holiday spending, first make a list of everyone you plan on buying gifts for. If you are unsure of what you are buying, set a price range for each person. Next, start thinking about your holiday plans. Are you hosting guests? Will you be traveling? Think about everything you will be doing this holiday season to get an idea of what the costs will be. After you make a list of all your holiday plans and gift giving, you can now set your budget and track your spending. 

Create a Holiday Budget. When creating a holiday budget, it’s important to look at your current budget to plan how you will pay for everything and prepare for additional spending. Setting budget categories for the holidays can help prioritize spending and make it more predictable. Consider how much will be spent on gifts, travel, and entertainment. While planning your spending and savings for the holidays, let your priorities and circumstances guide your budget. 

Avoid New Debt. It’s important to stick to your holiday budget, especially if you are still paying for previous expenses. If you are already in debt, consider making personal gifts/cards to give to loved ones or celebrating the holidays at home to save. Some tips to avoid new debt include only borrowing what you need and checking your bills regularly. If you need help with existing debt, contact Financial Pathways of the Piedmont. 

Financial Pathways of the Piedmont is here to help. Our trained and certified credit and housing counselors are ready to provide the financial guidance and support you need. Our counselors can help you with your holiday budget so you can spend time spreading joy this holiday season, not stressing over finances. Call 336-896-1191 to schedule an appointment.

Aniya Ellison is the marketing and events coordinator at Financial Pathways of the Piedmont.