How Much Holiday Expenses Will Cost You
Are you ready for this holiday season? It can be easy to overspend during the holidays if you don’t have a big-picture plan. Avoid overspending this season by breaking down the costs and creating a budget to keep yourself in check.
Holiday Expenses
Gifts
Before you go out and get the perfect presents for the perfect people, evaluate how much you plan to spend. Gifts are usually a centerpiece of the holiday season and depending on how many people you are gifting, the costs can vary.
The best way to get organized and avoid overspending is to create a budget specifically for gifts. List out everyone you need a gift for – including exchanges – and a specific amount to spend per person. One way you can do this is by using either a spreadsheet or another budgeting app to help you keep track of your gift spending.
Example costs per person:
- Gifts for a coworker or acquaintance – Avg. $15-30
- Gifts for a close friend or family member – Avg. $50-100
Average cost spent on gifts for family and friends: $650 (Occupying over 50% of most holiday budgets)
Food & Entertainment
The main reason we love the holidays so much… getting together with our loved ones! Whether you are going to a gathering or hosting your own party, there are expenses that we don’t always consider. Make sure to consider both of these expenses when planning out your holiday budget.
Common holiday meals include:
- Roasted turkey
- Baked ham
- Sweet potatoes
- Green bean casserole
- Stuffing
- Pie
Common forms of entertainment include:
- Board games
- Karaoke
- Christmas cookies/decorating
- Ice skating
- Movies or shows
Average cost of entertainment and food: $230
Decor
Did you know that over 80% of Americans nationwide decorate in some way or another for the holidays? Decorating for the holidays is a fun way for many to get into the holiday spirit! Depending on where you live and how much decorating you do, the cost of décor will vary from household to household.
Some common decor for the holidays include:
- Christmas tree/ornaments
- Holiday lights
- Themed inflatables
- Wreaths
- Stockings
Average cost of decor during the holidays - $150
Travel
For some people, the holidays take us on adventures to different states or countries. Whether it’s to see family or make memories, traveling can take up a big spot in your holiday budget, so make sure to consider all of the costs involved in traveling, including gas, snacks, souvenirs, etc.
Note: Traveling expenses during the holidays vary widely depending on whether it’s just you or your whole family, and for how long you will be on vacation.
Breakdown of travel costs for a weekend trip:
- Transportation – Varies from buying gas to purchasing plane tickets
- 3 nights at a hotel – Avg. $500
- 3 day car rental – Avg. $145
- Restaurant meals – Avg. $310
Average cost of travel – ranges from $1,400 – 3,600
Ways To Save For The Holidays
After seeing all the holiday expenses broken down in front of you, you might be wondering how you are going to make it through this holiday season. Not to worry! There are plenty of ways to save up for the holidays, such as:
- Get a seasonal or part time job
- Take out personal loans with low to zero interest
- Use a rewards credit card and redeem points
- Sell old stuff you don’t use anymore – an easy way to make some extra spending money, plus make space for new stuff!
The holiday season can quickly become a season of chaos and panic for some people, but when you go into it with a plan in place, you will feel more prepared than ever.