Menu
Log In
Sign Up

How To Avoid Overspending This Holiday Season

Rachel Surman

Dec 10, 2018 4 min read

Share on Facebook
Share on Twitter
Share on Linkedin
How To Avoid Overspending This Holiday Season

It really is the most wonderful time of the year! But it’s not always the easiest season on your wallet. Between the holiday get-togethers, traveling to see friends and family, and ringing in the new year – the holiday season is super fun but can really put added stress on your finances. If you’ve ever asked yourself, “How do I avoid overspending this holiday season,” – we’ve got you covered! 

How To Avoid Overspending This Holiday Season

1. Set a budget

Creating a holiday budget and sticking to it is key to not overspending during the holidays. Taking the time to calculate how much you can realistically spend is extremely important. Your budget should include travel costs, gifts for family and the kids, and food or other hosting gifts. If you plan to buy yourself a holiday gift, make sure you budget for that as well to avoid any surprises on your credit card bill. If you’re in need of a bit of help creating a budget, here’s exactly how to create a holiday budget.

2. Think homemade rather than store-bought

It’s time to tap into the creative energy you’ve saved up this year! Giving a personal, homemade gift is always a heart-warming way to spread holiday cheer on the cheap. There are tons of do-it-yourself gifts that are simple and fun to make. Crafts can make excellent gifts, like a personalized scrapbook. Potted plants with creative paintings on them are also cost-effective. Baking itself is cheap and is always appreciated. 

Coupons are another great (and free) idea! Think along the lines of coupons for “one evening of babysitting” or “one cooked dinner.” The options are endless and it’s an easy way to tailor your gifts to your loved ones.

3. Think “one gift” games for get-togethers

Giving gifts to friends can get expensive and all those small gifts tend to add up. A way to avoid individual gifts at get-togethers is by playing “Secret Santa” or “White Elephant,” so you’re only responsible for buying a single gift.

While these games can get a little competitive, it’s always a fun and inexpensive time. 

4. Limit self-gifting

Make a list of gifts to buy and seriously, stick to it. This is when that holiday budget comes into play! Being prepared helps you to not overspend, especially on yourself. In recent years, retailers have adopted a message about rewarding yourself, which is important. But what’s more important is buying yourself something you really want or need, as opposed to getting carried away and buying something that only brings joy at that moment. 

5. Ensure you have a good credit card

Credit cards are a great way to access credit, but should not be used to borrow against. If you have trouble staying within your limits with a credit card, then stick with debit or cash. If you don’t make your credit card payments on time in full, you’ll be charged interest on the balance. Interest usually sits around 19-29% percent on fancy rewards cards. If you do find yourself caught in expensive credit card debt, a low-interest personal loan from Borrowell could help you save money and get out of debt sooner.

But if you feel confident with credit cards, you can reap the benefits by using a rewards or cash-back card for your holiday shopping. Check your free credit score with Borrowell and see the best credit cards available to you.

6. Monitor your credit score and report

Be sure to track and monitor your credit score and credit report during the holidays. This is a time when many Canadians are using their credit cards more and are spending more. It’s a vulnerable time and you may not notice extra charges on your credit card statement. Along with checking your bank statements, be sure to monitor your credit score and report with Borrowell.  You can easily see if there are any inquiries on your credit report that you didn’t authorize. 

Get My Free Credit Score 

We hope we answered your questions about how to avoid overspending this holiday season! From all of us at Borrowell, have a happy and safe holiday. 

Rachel Surman
Rachel Surman
External Link
Share on Twitter
Share on Linkedin

Rachel Surman is a digital writer at Questrade and a former content marketing specialist at Borrowell. Rachel is passionate about helping educate others about credit. She's also a big fan of budgeting and saving - mainly so she can visit all the places on her bucket list.

Similar Topics

8 Tips to Improve Your Credit Score

How To Improve Your Credit Score in Canada

Here are eight tangible steps you can take to improve your credit score. Your credit score directly impacts your ability to get approved for financing, including credit cards, loans, and mortgages.

The Borrowell Team

Feb 04, 2021

Learn More

Can You Build Credit by Paying Rent?

Thanks to rent reporting services, you can now build your credit score by paying your rent on time every month.

Janine DeVault

Jun 17, 2024

Read More

Loan vs line of credit

With all the different credit options available in Canada, it’s important to understand the differences between each one so that you can find the right product for your needs. Credit can be useful to help you establish a history and finance purchases, but should be used mindfully.

In this Borrowing 101 article, we’ll give you an overview of personal loans and lines of credit to help you understand how they work, when to use them, and what to be careful of in order to protect your credit score.

The Borrowell Team

Feb 28, 2023

Learn More