DCH Financial Literacy Corner: How to Write a Holiday Budget and Stick to It

The Holidays are such a magical time in Dallas, bright lights, festive decorations, community gatherings, and support really can put you in the season to give gifts. This holiday season, however, there are even more reasons to save for your future. Housing in Dallas is one of the least affordable in the US, and with unstable rents, the importance of saving for a home cannot be overstated. Dallas City Homes certainly does not want to deliver a bah humbug blog, so we are offering tips for writing a holiday budget, sticking to the budget, and some fun free Dallas events to enjoy the season, sustainably. 

How to Write a Holiday Budget 

Budget Early, Don’t Shop Early 

Unless you have prepared your list of who you are shopping for and what they are getting, do not engage in online sales like Black Friday or Cyber Monday. Consumers spent nearly $1000 on gifts in 2021, for many that is a month's rent. Decide how much money you can afford to spend on gifts, then delegate what you would be appropriate for each person. THEN shop for deals. 

Budget for Big Picture 

Think holiday spending and budgets are only gifts? Think again. The cost of Thanksgiving in 2022 was up nearly 20% according to the Farm Bureau's 37th annual survey. When you are creating a holiday budget for the high holidays in December; Christmas, Hanukkah and New Years, consider the feasts. Also, plan for travel expenses, decorations, and cost of unpaid time off. 

Holiday Trimming, More than the Tree 

When you have a budget in mind, there are ways you can devote time this season to actually increase savings and audit spending coming into the New Year. Review subscriptions, consider travel expenses and carpooling options, reduce eating out, consider refinancing debt, and negotiate lower rates on credit cards are all ways you can audit your spending to positively impact your savings. 

How to Stick to a Holiday Budget and Still Enjoy the Season 

Keep Making those Lists 

Keep to your list. As the season wears on, so can resolve to save. Maybe one last thing, or a small something at a drugstore even, can be a tipping point to going over budget. Keep a list on your phone or in your pocket of who gets what and what the prices are. Buy only what is on the list and for people on the list. The most valuable gift we can give is our time and care, remember that amongst the holiday lights and whirl of gifts. 

Enjoying Dallas During the Holidays, Without Spending 

Here is a list of FREE Dallas events this holiday season. Grab a cocoa from home and head out to look at the lights, stroll downtown to look at the stockings on display, get pictures taken with Santa, go caroling, and be sure to check in with your local Dallas Public Library branch to see their programming. For children, there is magic in the stories around the holidays, and no one reads them better than the professionals! 

It might be very tempting to rely on credit to give gifts, but consider the consequences of unforeseen interest rate increases. Where it might feel great to give in the short term, saving and preparing for a brighter future can be equally rewarding. If you would like more resources on financial literacy, please let us know and we will connect you!