6 tips to protect your finances during the Holidays

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Finding the perfect gift for your loved ones is a great feeling. However, you should stick to a strict budget to ensure you don’t start the new year deeply in debt. This year, the Holidays will definitely be different. Here in Quebec, Canada, we are allowed to visit relatives in small groups (10 persons maximum). Remember that the Holidays are about spending time together and celebrating the end of the year (bye-bye 2020! You won’t be missed!), not spending thousands of dollars on credit. Here are a few tips to help your finances survive the Holiday season.

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Make a list of the important people in your life

This list could include your kids, your siblings, your parents, your BFF, your significant other, and any other loved ones. You may want to give gifts to your colleagues, your kids’ teachers, but if there is no room in your budget, you will have to make some sacrifices about gifts rather than sacrificing your finances during the Holidays.

Note: I should specify that this list of important people in your life does not mean that the persons who didn’t make it are unimportant. As much as I love my colleagues to the moon and back, I’d rather spoil my kids, my fiancé, my parents, and my sisters!

Set a very specific budget

Whether you started putting aside some money dedicated to Holiday presents a while ago or only have $100 available, you need to divide the amount of your gift budget by the number of persons you decided to give a gift to. For instance, if your budget is of $100 and you chose 10 persons, you will have $10 per gift. If you have $250 for 10 persons, it’s going to be $25 per gift. Try to consider the tax in this budget.

Setting aside a specific budget for gifts will help you protect your finances during the Holidays.

DIY gifts

One year, I had exactly $0 for gifts because I was on maternity leave, at 55% of my regular salary. I decided to bake cookies for all my loved ones. I already had all the ingredients at home to make them, so I only had to buy nice boxes at the dollar store for a nice presentation.

There are so many other options when it comes to DIY gifts. Depending on your skills, here are a few ideas:

• Crocheted scarf and beanie
• Scented candles
• Art
• Goodies baskets
• Coasters
• Soap
• Bakeries

If you want more ideas, look it up on Pinterest!

Make a coupon book

Time is money. Craft a “coupon book” redeemable for things like babysitting (ideal for parents of a baby or a toddler!), mowing the lawn, washing the dishes, coffee date… The options are endless! They won’t cost you a lot to make (other than printing), and it will be a gift of time!

To create a coupon book, use Canva! They have different customizable coupon templates that could work for you!

Homemade gifts are often very much appreciated by your loved ones because they were made with all your heart. But they are also very finance-friendly for the Holidays!

Shop deals!

Black Friday and Cyber Monday are right around the corner. A ton of stores offer great deals on their products, so you should take advantage of them if you know one of your gift ideas will be on sale. You can also leverage online shopping to look for deals by comparing product prices at different stores, or use coupon apps like Honey to save even more.

Take advantage of all the deals and savings during the Holiday season, but also all year round, to help protecting your finances.

Say NO to parties!

In a regular setting, I would recommend saying No to some holiday parties to save money (you go out for a beer, but $250 later + the taxi you need to take to go home, your night quickly becomes costly). I’m not saying to avoid all Christmas parties at all costs, but you could organize a pot-luck with your friends instead of going out to help protect your finances in this Holiday season.

In Quebec, most restaurants and bars are closed, or only open for delivery/takeout, so that aspect shouldn’t be as much of a problem this year. Read more about the COVID-related instructions for the Holidays in Quebec.

However, I insist even more on this aspect as we are still stuck with the COVID-19. I know you want to see your friends and maybe relatives, but right now, we must keep up the social distancing. If you apply the right safety measures, you could visit your parents, your grandparents, or your siblings in smaller groups, but better be safe than sorry. If you need a reminder of the COVID-related instructions in the USA, visit the CDC website.

Buy gifts with your debit card, not your credit card

Paying for the gifts in cash or with your debit card will help you stay out of debt and will keep your finances safe during the Holidays. Remember that if you use your credit card to pay for the gifts, you will have about a month to pay the balance back ENTIRELY. If you don’t, you will be charged interest (usually 19.9% on most credit cards) and it will affect negatively your credit score. Learn more about credit scores here. A good credit score (above 700 points) will help you stay on the right track when it comes to protecting your finances not only during the Holidays but all year round.

I hope these tips will help you protect your finances during the Holidays and keep you from getting into debt. If you are looking for gift ideas, make sure to read my blog posts Gift ideas for coffee lovers, Board Game Ideas for kids ages 3 to 16, 7 non-toy gift ideas for kids, and Eco-friendly gift ideas.