How to Budget for Christmas

There are few things in life that are more fun than giving someone you care about the perfect gift! Watching a child squeal with excitement when he sees what he got, shocking your spouse when you get him exactly what he wanted but never thought he’d get, or showing your gratitude for a teacher or friend. There’s nothing quite like it! Unfortunately, those perfect gifts can come with a not-so-perfect price tag. It’s fun to walk the isles of Target and fill up your cart, but even if your intentions are good you can’t let the joy of giving blind you to the realities of your finances. That’s why I’m sharing with you the method I use to keep my shopping under control during the holidays. My Christmas is a little brighter when I know exactly how much I’ve spent, what I’ve bought, where I bought it, and that I didn’t leave anyone off my list. Don’t let your credit card bill in January shock you because you went crazy in December. Here’s how I do it.

This page contains ads/affiliate links. See my full disclosure for details.

Below is an example picture of how I Christmas budget for my family. Before you begin shopping, you must do the following:

1. Make a list of everyone you need to buy for – kids, spouse, parents, teachers, neighbors, friends, etc.
2. Decide how much you are going to spend on each person – look at what you can realistically afford
3. Print out a sheet for each person – see my free printable at end of this post
4. Put all the papers in a binder and bring the binder with you whenever you shop
5. Write down the details of everything you buy (item, store, cost, etc.), keep the receipts in the binder too
6. Keep a running budget on each person so you don’t overspend
7. Have a merry, stress-free Christmas!!

I also create an overall budget spreadsheet. This helps me see how much I am going to spend TOTAL on Christmas. It’s amazing to see how quickly the costs can add up. Sometimes after writing everyone down I go through and adjust a few people by $5 or $10 to try and get the final budget where it needs to be. I’m giving you this sheet for free too! Below is an example of how to use it.

Keep in mind this holiday season that if you can’t afford something, don’t buy it! The people you care about don’t need extravagant gifts to know they’re loved and appreciated. Plus your family and friends don’t want you going into debt to buy them things. There are many ways to show you care without spending a lot. I hope this budgeting method will help you out this year.

**To download your free budgeting paper, click here for the individual sheet and click here for the overall budget sheet.**

If you want to earn some extra Christmas money right away, I recommend Swagbucks for an easy $25 within a month, Ibotta and Checkout51 to get money back on groceries, selling things around the house, doing surveys, babysitting or pet sitting, or selling your plasma. I have a list of 100 ways to earn money from home here. For longer term income sources, see all the ways I make money here.