The Christmas season truly is the most wonderful time of the year! From decorating the tree to huddling around the fire to watching Christmas movies, everyone gets in the holiday spirit when December rolls around! Despite the joy and cheer that accompany this season, finding gifts can be stressful for some. It isn’t easy, especially for teenagers, to find the perfect present without breaking the bank. Knowing how to budget is a financial skill that can help you save money, allowing you to indulge in the holidays without spending all your money.
1.) Saving a percentage of your paycheck
An easy way to build up your savings is to set aside a percentage of your paycheck after every payday. You can review your income streams with a trusted family member, and they can help you decide how much you should be saving based on your monthly expenses. About 50% or more of your paycheck is reasonable for most high schoolers. But where do you put these savings? I’ll give you a hint: the answer is not a piggy bank. You should be putting your savings into a savings account with the bank. This allows you to grow your money with interest over time.
It’s easy to set up a savings account! Find a bank you trust and set up an account with a clerk. When you set up an account, you’ll most likely create a savings and a checking account. A checking account is connected to a debit card and is used for everyday spending on things like gas or food. For this reason, the interest on your checking account is less than the interest on your savings account. If you want to save up, put your money into your savings. It will keep your money safe, grow your savings with interest, and help you save for major expenses in the future, like college tuition or Christmas!
2.) Get crafty with presents
Sometimes, you don’t need a store-bought gift to make someone happy. Creating a craft or DIY gift for a family member can be as thoughtful and meaningful (if not more) as a store-bought gift. Plus, making rather than buying presents saves you money. I paint something for my dad’s office every year, and he appreciates it more than anything I could buy at the store for him because it is more personal and sentimental. Other ideas for homemade gifts include knitting a cozy blanket or scarf, writing a book about your relationship with the person, painting coasters, making an ornament, printing out pictures and making a photo book, editing a heartfelt video to music, baking cookies, and more!
You could also give someone experience instead of a present. Take them to a theme park, shop in Baton Rouge, pay for a fun dinner, hike in Tunica Hills with them, or something else!
3.) Shopping with a list
Before you set out on a shopping trip, list what you’re looking for. Whether grocery shopping for Christmas dinner or finding the perfect gift for a friend, making a list when you go Shopping has been proven to limit impulsive buying of unnecessary items. According to Psychology Today, in a study of 2300 shoppers, researchers at the University of Pittsburg found that people who reported using a shopping list made fewer unplanned purchases during their shopping trips. Thinking ahead before you shop will help you save a ton of money by holding yourself accountable and encouraging you not to spend on things you do not need.
4.) Save with friends
Christmas is always fun when you celebrate with friends, but there are some things you can do as a friend group to save money! Instead of buying a present for everyone in the group, the group can set up a Secret Santa or White Elephant exchange. Secret Santa is a fun game where you draw a name from a hat and buy a present for that person without them knowing. Everyone buys a present in a White Elephant exchange, and presents can be traded at the exchange. Both games save you money because you only buy one instead of ten gifts. Your friend group can also set a price limit for gifts so that everyone spends the same amount.
You and your friends might enjoy a potluck-style dinner. Everyone contributes a dish, and together, you have a whole meal! Your group can enjoy various foods and not take too much out of your wallet. Be sure to divide what kinds of dishes everyone is bringing. You don’t want to have seven desserts and two main dishes. By contributing to the meals you can and setting a budget, your friend group will surely have a fun and affordable time together.
5.) DIY decorations
Everyone loves to decorate their space for Christmas. But sometimes you don’t want to spend money on decorations sold at the store. DIY decorations can work just as well to make a space feel like Christmas! You can cut paper to make snowflakes and tape them on your windows or around your room. This will automatically make your space feel more like the North Pole. Another great idea is to make candy canes out of pipe cleaner. You can hang these on the tree or place them around your room to brighten the mood! Check out this website for even more ideas on DIY decorations: 90 DIY Christmas Decorations for a Homemade Holiday.
All these methods can help you avoid overspending this holiday season. Monetary responsibility is especially important at this time of year, and tasks like these can make you a more responsible spender before Christmas.
No matter what you do, Christmas is a time of giving and bonding with the ones you love. To quote Dr. Seuss in How the Grinch Stole Christmas, “Maybe Christmas does not come from a store. Maybe Christmas…perhaps…means a little more.”