BBB Chief Exective Jim WinsettQ. Last holiday season, my family spent more money than intended; do you have advice to create and keep a holiday budget?
A. Unless you are among a select group of people, sitting down and creating a budget does not sound like very much holiday fun. Nevertheless, in tough economic times, the Better Business Bureau recommends that mapping out your spending in November will help ease the strain of a financial holiday hangover in January.
Although retailers are anticipating an increase in holiday spending over last year, that doesn’t mean you have to spend more. According to the National Retail Federation, “American shoppers will spend just under $750 on average on their holiday purchases this year, with a record percentage of shoppers buying online.”
While it is not the most festive way to spend an evening, sit yourself down and crunch the numbers because tough economic times mean that you literally cannot afford to spend with abandon. Building a budget and sticking to it over the holidays will keep away a painful financial holiday hangover.
BBB recommends the following five steps: