Between gift giving and entertaining, the holiday season means massive spending for many. Even people who are typically frugal spenders can get caught up in a holiday spending frenzy. 
But, overspending doesn’t have to be the norm for you during the holidays. Avoid going into the new year with a load of debt by following these seven tips for smart spending this holiday season.
Budget for Each Person on Your List
Make a list of every person you want to buy a gift for and then set a budget for each person. It’s tempting to overspend if you find the “perfect” gift for someone, so keep your budget list with you at all times to ensure you don’t go beyond anyone’s allotted amount.
Be More Selective About Gift Giving
No one wants to feel like a Scrooge this time of year. But if someone buys you a gift, you may feel obligated to buy them one as well. This is how many people end up overspending during the holidays.
To avoid finding yourself in this uncomfortable situation, be up front with anyone who bought you a gift last year who you don’t plan on buying for this year. Clear the air by saying something like “I know we normally exchange gifts, but I’m cutting back this year. I won’t be getting a gift for you this year, so please don’t feel like you need to get me anything.”
Keep an Eye on Deals
Just say “no” to impulse purchases. Smart spenders put in the time to research the best price. Use a variety of sites and apps to hunt down the best prices. A few sites worth checking out include:
When you’re in a retail store, use a bar code scanner app like ShopSavvy to look up how much the item costs at other stores and online.
Join a Rewards Program
It’s possible to get perks and money back for spending with sites like Ebates or MyPoints. These programs allow you to earn points for how much you spend which you can later put toward other purchases or cash rewards.
A lot of stores also offer loyalty programs which give you rewards once you hit a certain amount. Be careful about signing up for reward programs that will cost you money upfront — some loyalty shopping cards require a sign up fee.
And credit cards with reward programs may tempt you to run up too much debt. Now is not the time to be signing up for new credit cards. If you have existing credit cards with rewards points, use them responsibly — set a strict budget and pay off your cards by a certain date.
Give Intangible Gifts
Not all gifts come wrapped in a box with a bow on top. Consider how you can give to people in non-material ways by giving the gift of your time. If you have a special skill, offer it to other people who will find it useful. Or, offer to teach someone how to do something you’re good at. A few intangible ideas anyone can give include offering to help out with babysitting, cooking, cleaning or home repairs. These are often the things people appreciate more than any expensive material gift.
Buy Several of the Same Gift
The time you spend out shopping is also a drain on your resources, which could be used for other stuff like gas money and childcare costs. Vow to spend less time shopping. Don’t stress yourself out by spending hours at the mall trying to find unique gifts for everyone. If you find a great deal on a gift that could be suitable for several people, don’t feel bad giving matching gifts.
Reassess Your Expenses
With the end of the year approaching, this is good time to do an audit of your spending. Try to cut costs from your overall month-to-month expenses, like cable, mobile, Internet, and utility bills. Are there places you could be saving? For example, you can use a site like DirectTVBeatsCable.com to check if you’re getting the best possible deal on your entertainment package.
Lastly, don’t forget the reason for the season. A lot of people get so caught up in the material side of the holidays that they lose sight of the true meaning of the holiday season. Take this time of year to focus on spending time with family and friends
Andrea is the Chief Chick of Smart Money Chicks. After filing BK twice (once because she panicked, second time because the pro messed the first time up), she realized that it all could have been avoided if she understood more about how her Finances worked and the options available. At that point, she wanted to help as many as she could never make the same mistakes again. Our Promise is that all the content you read on here is created or edited by Andrea
Great tips! I love the idea of using an app for price comparisons 🙂