Thursday, December 20, 2012

Penny Pinching Christmas Gifts

Each year Christmas seems to sneak up on us... especially when there's no snow!  What's with that??

It can be difficult to get through Christmas when your family is on a very strict budget.  I'll be honest, Christmas has been the time of year when my husband and I have made the worst financial decisions.  There are a few things that I have learned, though.

The number one thing to remember is that Jesus is the reason for the season!  It doesn't matter if you get your kids 7 big presents or 2 little ones, as long as they know why you are celebrating.  Teaching your kids about Jesus is the best thing you can do as a parent.

One think we learned early on in our marriage was to use the envelope system.  Whether your paychecks come every week or twice a month, this is the best way to handle your finances.  When you use cash for everything, you are less likely to spend over budget (because you can't) and you are less likely to spend at all.  One thing that we learned from Dave Ramsey is that if you have bigger bills you won't want to spend it.  For instance, if your budget allows for $20 of spending money, take it out of the bank in a $20 bill rather than two 10's or fourr 5's.  As soon as you break that $20, you won't feel as rich.  It's a lot easier to spend a $5 bill here, and another there.  Because I don't like to re-invent the wheel, here's a site that has printable budget envelopes.  By the way, the Money Saving Mom has a lot of ideas for budgeting at Christmas.  Search on her site for "31 Days of Giving on a Budget"

Taking out cash for your Christmas gifts is going to help you stay on budget when buying Chrsitmas gifts.  If you spend too much on Aunt Kelly, you won't have as much to buy for Cousin Samuel.  Sit down with your hubby and talk about how much you are willing to spend on each person.  The best time to do this is months before Christmas so that you can work it in to your budget and it's not a huge chunk of one or two paychecks in December.  Of course, if you get a Christmas bonus at work that's a great way to be able to give generously.

Another great way to penny pinch around Christmas time is to make homemade gifts.  There are a lot of ideas floating around on Pinterest right now.  But remember, if you have to buy lots of supplies you're not saving money!

Whether you decide to buy or make, you need to make a list.  Deceide how much you are spending on each person, then choose what you're buying ahead of time.  That will help you stay on budget, too.  It will also keep you from buying more gifts than you planned for each person.

Merry Christmas!

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