If you’re recovering from a bankruptcy filing or otherwise trying to keep your budget on track, you’ve hopefully spent some time developing a plan for holiday spending. And, if you haven’t, take a moment to consider some of these holiday spending figures, pulled from CreditBloggers.com:

  • We tend to spend more than we plan to: Last year, according to sources, the average American family with a household income below $100,000 planned to spend $710 on holiday gifts – but ended up spending closer to $810. If you’re in a penny-pinching state of mind, keep careful track of holiday purchases.
  • You may be able to get away with spending nothing: In one poll, it seems 12 percent of men noted that they planned to spend nothing at all on holiday gifts. That might work out if you’re the particularly charming (or particularly Scrooge-y) type, but otherwise, you might have to let others in on your plan. Consider calling a “gift truce” with some of the people on your list and opt instead for a low-cost experience you can all share.
  • Get creative when looking for funds: You may be able to find a dollar or so in the couch cushions, but a more fruitful place to look for holiday cash could be within reach. Consider cashing in credit card rewards points, using balances on old gift cards or offering your services instead of goods to loved ones.
  • Credit cards might mean debt: One figure showed that 13.6 million Americans went into 2010 with credit card debt from the 2009 holiday shopping season. A related figure showed that those who opted for credit cards in lieu of cash tended to spend more money total.

Keep Your Finances on Track without Sacrificing Holiday Cheer

While it’s important to know the risks we take by spending thoughtlessly during the holiday season, it’s also important to take advantage of opportunities to enjoy our friends and family. Consider these low-cost, high-cheer holiday alternatives to regular gift-giving:

  • Secret Santas: Rather than buying gifts for everyone in a group, have each person pick a name and stick to a price limit. This even works well for family gatherings – some families make a game of it by wrapping all the gifts without labels and picking at random.
  • Events, not things: Rather than dropping cash on something that might never get used, suggest going out for a cup of coffee or drink with people you’d like to celebrate. You’ll get to enjoy each other’s company without the stress and expense of exchanging gifts.
  • Plan, plan, plan: One way to keep the holiday season from feeling overwhelming is to keep track of what you’re spending so you have an idea of what to expect when the bills arrive in January.

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