Budgeting for Gifts

Comments Off by in CMW News
March 23, 2018
Budgeting for Gifts

Image Copyright Ted Grussing Photography – Used with permission

The holidays may be long over but let’s face it; there are still plenty of events on the horizon that will socially obligate you to provide a gift. Aside from birthdays and holidays, Summer time can bring even more occasions such as graduations, weddings and anniversaries.

Of course, we all know giving is a joy! But too much generosity can cause damage to your budget if you’re not careful. Today we would like to offer a few tips to help you manage your money for the gifts you buy each year.

  • Set up a Gift Savings Account

If you find yourself buying gifts every month consider opening a savings account solely for this purpose. This can be a great way to save for gifts on a monthly basis so the cash is always there when needed.

  • Budget for Expected Gifts

Put a cap on spending by working out a budget at the beginning of the year with definitive limits for each occasion. For example, only spend $50.00 on a graduation gift, $30.00 for a birthday gift, etc.

  • Avoid Credit Traps

Most of us are more apt to get in trouble with these during the Holidays, but keep in mind if you need to charge your purchases that it may be best to use your bank credit card and not a department store credit card. The charges for store cards are usually higher than your bank credit card. However, this is not such a big deal if you know you will pay off the charge in the following month.

  • Get a Jump on the Holidays

This is something else to keep an eye on at the beginning of the year. Stores often run sales on unsold holiday items in late December and early January. Consider buying as many gifts as you can super early to take advantage of the sales.

  • Stock Up!

Speaking of sales, it never hurts to keep an eye out for opportunities even if you do not need a gift right away. Spot something that would make a perfect graduation/wedding gift on sale? Buy 2 or 3 if you can and put them back for later! You may be able to give them away sooner than you think.

As wonderful as it is, gift giving can quickly blow through a budget. So plan ahead, so you can give worry and guilt free!

Have a wonderful weekend!