By Jasmin Brown

BDO Debt Solutions

Deck the Halls Without Breaking the Bank: Tips for a Budget-Friendly Holiday

Nov 18, 2024 | 5:42 PM

“The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of Pattison Media and this site.”

As the holiday season approaches, many Canadians, including those in Saskatchewan, are feeling the financial strain. The festive season, which is supposed to be the most wonderful time of the year, often brings added financial stress. This is especially true for younger generations, who may have young families and feel more pressure to spend.

Despite the stress, many Canadians plan to maintain their holiday budget from last year, with some even expecting to spend more. However, the rising costs due to inflation have made it harder for households to manage their budgets. Credit card use is on the rise, and many people are relying on credit to cover holiday expenses.

A survey conducted by Leger on behalf of BDO Debt Solutions and CPA Canada reveals that 97% of Saskatchewan residents expect to be financially stressed this holiday season, with 47% feeling more stressed than last year. Additionally, 61% of Saskatchewan residents plan to use credit cards to cover holiday expenses.

Other surveys show similar trends, indicating that holiday spending is expected to increase this year. This increase is attributed to higher costs rather than increased purchasing. Past surveys highlight the financial challenges of holiday spending, with many Canadians still paying off debt from last year’s holiday spending and experiencing debt regret as a result of that spending.

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Tips for Managing Holiday Spending

There is no doubt that there is a lot of pressure to spend this time of year. I encourage people to balance their festive cheer with financial responsibility. To manage your holiday spending, consider these tips:

• Create a realistic budget looking at what cash you actually have available after the bills are paid;
• Ensure you include all expenses, such as gifts, decorations, holiday attire, groceries, travel, and entertainment;
• Use debit or prepaid cards to avoid relying on credit cards;
• Have a clear idea of what you are looking for – plan your purchases to find the best deals;
• Get out there early to give yourself as much time as possible to search for the best deals;
• Comparison shop;
• Avoid last-minute shopping. It can lead to impulse buying, overspending, and taking on debt;
• Downsize gift-giving by drawing names or doing Secret Santa;
• Avoid “buy now, pay later” offers – you may be subject to fees and/or interest charges if you are unable to pay the loan back on time, and they may lead to overspending.

Holiday FOMO

During the holiday season, it’s easy to feel pressured to attend every event and keep up with social media posts. Many people experience the “Fear of Missing Out” around the holiday season. In reality, you may simply not be able to afford to do it all.

• Focus on the gatherings that matter most to you;
• Consider hosting potlucks to save on food costs;
• Disconnect from social media.

If you are feeling overwhelmed by holiday expenses, you are definitely not alone. This is supposed to be the most wonderful time of the year, not the most stressful. It is important to know that there are solutions available. Christmas should not be about what’s under the tree, but about those who are around it.

If you are having trouble making ends meet each month, finding the right debt solution can help. Visit the BDO Debt Solutions website for more information, or call 1 855 BDO DEBT to book a free, no obligation consultation.

Jasmin Brown is a Senior Vice President overseeing the insolvency practice in Saskatchewan. She is committed to providing creative and practical debt solutions with empathy, understanding and professionalism to help people overcome their financial difficulties.