LETHBRIDGE -- Trying to keep in the black while decking the halls for the holidays is a challenge many Canadians face every season.
Rod Cowie of Foremost, Alta., said he is one who finds it tough to stay within budget.
"I always overspend," he said.
But Cowie said his family has come up with one way to keep spending under control — by drawing names and only spending a set amount on one person instead of buying for everyone.
ATB Wealth president Chris Turchansky, who was in Lethbridge this week for an investment conference, said money is one of the biggest stressors at Christmas time because of the long-term impact spending can have.
"We absolutely see more people at the end of Christmas into January, come in to look at how do we consolidate debt?" he said.
Chris Turchansky is the president of ATB Wealth.
ATB is offering these simple tips to help you keep your holiday spending in check:
1. Create a holiday budget and stick to it
Making a clear budget for the holidays can reduce or eliminate overspending.
First, make a list of all the things you plan on buying, including gifts, food, drinks, decorations and other holiday expenses. Then break down how much you can spend for each item.
2. Plan ahead for the holidays
Planning ahead can help avoid last-minute overspending when you might be caught up in the moment. Watch for sales and deals in the weeks leading up to the holidays.
If your holiday expenses are too much to handle in December, you can also plan ahead by saving a little each month throughout the year.
3. Talk to your family and friends about holiday gift price limits and expectations
Have a conversation about price limits on gifts and set clear expectations.
When deciding what to gift to give, you also may want to consider a homemade gift. With a little planning and time, you can create a meaningful, personalized gift that can save you money at the same time.
4. Share the responsibility of holiday hosting
Hosting holiday parties or family gatherings can become a lot of work and a big expense as well. Instead of covering the entire holiday feast complete with appetizers, desserts and drinks, ask family members if they can pitch in by assigning each person a dish or something to bring.
Not only will it cut the cost, it will mean you spend less time in the kitchen and more time enjoying time with your loved ones.
5. Avoid using credit over the holidays
Remember the holiday season is short, and Christmas is just one day. You don't want to be playing catch-up all year after this season is over. If you do use your credit card, pay off your balance as soon as possible to reduce interest payments.
Lindsay Cote, sales clerk at Nava Aromascience in the Park Place Mall, said she’s noticed a lot more customers buying gift cards.
"If they don’t know what to buy, or have a limit, a gift card is a really good way to do that," she said.
Cote said she also sees a lot more cash at this time of year.
"Say you have $300 to spend and you go, okay, I take out that $300 and that’s all I’m going to spend. It’s a great way to save your money and not overspend."
ATB and other institutions offer budgeting tools to help you plan for a holiday season you can afford, but Turchansky said if you find yourself in debt and are struggling to get through the holidays, you should talk to your banker.
"Communication is so key," he said.
He said advisors can review your options with you and help you build a debt plan that can lighten the load.
