When money is tight, everything must be evaluated- is it really necessary? Is it that important? Can you do without? Sometimes drawing the line can be difficult, especially when it comes to your children. When holidays and birthdays draw closer, it’s normal to feel some anxiety about being able to provide a great experience for your family.

It’s never too early to set aside money for birthdays, holidays, graduations, and other special occasions. Set a budget for gifts and stick to it- make sure you go by the same figure for each family member. It’s easy to forget related incidental costs for gifts such as wrapping and shipping, so be sure to include room for this in your budget.

Instead of spending money on fancy greeting cards, have family members make their own cards using colored construction paper, scissors and markers (or crayons, depending on the age of your children). You’ll save $3-5 on each card, but wind up with ones that are much more valuable and sentimental. Help your children make homemade gift certificates for each other that feature help with chores or other special treats, such as “15 Extra Minutes of TV Watching” and “One Free Dog Walk”.

When you do purchase gifts from a retail store, do so wisely. Take a little extra time to peruse the Sunday circulars for the best deals on specific products. Many stores feature the same products online but at a lower price than in their stores. You can also find coupons for discounts on products or free shipping from vendors by searching online, or at coupon websites such as coolsavings.com and couponwinner.com.

Consider a gift exchange for big holidays such as Christmas, when buying gifts for each member of the family can quickly drain your bank account (especially if you have a large family!) Approach relatives about expanding the tradition to include extended family who frequently send presents- they are probably facing similar financial situations and will welcome the opportunity to save money.

Make sure you keep your children’s expectations aligned with reality. Take the time to explain to them that money is tight right now, and that Christmas (or birthdays) is going to be a little different than past years. However, it’s important to let them know that it doesn’t mean the experience is going to be less enjoyable. In fact, this as the perfect opportunity to teach your children that making memories is much more important than receiving material possessions.

Posted in Home Budget

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