It’s not here just yet, but the holiday season is sneaking up on us ever so quickly. Before you know it, we’ll be in the midst of Christmas shopping and festive planning. It’s a very exciting time of the year – especially if you have kids! Still, this doesn’t distract from the fact that it can be a very costly season for families. You spend loads of money, often a lot more than you intended. As a mom with years of shopping experience, here are my 7 tips to avoid overspending this Christmas.

There are many reasons you should try to avoid overspending this Christmas season. Maybe you have been downsized, or are trying to pay down debt. Overall, times have been tough for everyone. Sometimes you think you want to keep things normal for your kids, and that could lead to overspending. However, this can put you in a bad financial position to start the next year. Instead of going overboard, here are some tips to calm your holiday spending this year:

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Make a List Before Starting Your Christmas Shopping

You will definitely overspend if you don’t have a list and a budget. If your budget is $200, and you come across a beautiful sweater that you know your sister would love, but it’s $100, that means that 1/2 your budgeted money is gone. Knowing how many gifts you need to buy and how many people are on your list is an important step to avoid overspending at Christmas.

Know the Cost of the Items You are Looking For

Before heading out to the store for Black Friday deals, check the normal cost of items. I have found that some of the Black Friday deals were actually less expensive in the weeks following up to “Black Friday.” Purchasing an item before those “special sale days” enabled me to save money and time.

Check Online Before You Buy to Avoid Overspending at Christmas

We live in a day and age where you can easily look online to see if the same item is priced lower somewhere else. When you are out shopping, checking the big-ticket items online may end up saving you lots of cash!

Take Advantage of Sales and Deals

The good thing about the upcoming festive season is that it provides plenty of deals and sales. We all know that Black Friday and Cyber Monday are the big ones, but other websites and businesses hold seasonal sales throughout this period. Look for these whenever you go to buy something as it can help you save a lot of money while still getting everything you need. 

Also remember that many of the Black Friday in-store only deals are designed to be super low priced. These loss leaders are put on the front page of the sale flyer to get you in the store. However, they usually only have a few in each store. Most likely, they will be sold out; you will feel disappointed and spend your money on other items. The store knows that once they get you inside, the chances of you buying items is increased. This will make up for the loss they are taking on the couple of big-ticket items they offer in their sale flyer.

Avoid Getting Ripped Off 

Too many businesses take advantage of the Christmas Season to rip you off. They ramp up their prices as they know desperate families will pay extra to get a present for their child. Avoid falling into this trap and getting ripped off by businesses.

How can you do this? Well, there are two ideas, one of which is far better than the other. Some people will say that you need to look for businesses registered with the Better Business Bureau (BBB) as it shows they’re trusted. However, as you can see from the Debt To Success System BBB analysis, this group is quite corrupt and can’t be trusted.

Instead, your best option is to check reviews and testimonials. This tells you what other consumers think of companies, so you can make up your mind as to whether you trust them or not. Find trustworthy companies to avoid getting ripped off and spending too much money. 

To Avoid Overspending at Christmas Use Discount Codes or Reward Points

Always check if there’s a discount code for a website before you buy anything from it. You can actually get an extension for your browser that automatically checks to see if a website has any available discount codes, so that makes your life easier. 

Similarly, take advantage of any reward points you’ve gained throughout the year. This is perhaps most relevant when food shopping. Most grocery stores will have reward systems where you can collect points throughout the year. Ideally, you should save them up for the holiday season, cashing them in to get money off your big food shops. As a result, you will save a fortune on all the festive food this holiday season, and this in essence will enable you to avoid overspending this Christmas.

Once You are Done Shopping, Stay Out of the Stores

Mindless shopping after you have finished your holiday shopping will only add expense to your bottom line. Once you have finished your Christmas list avoid the temptation of going back just to see if you can find a better deal or something extra-special. These better deals and extra-special gifts end up ruining your Christmas budget.

Understand the True Cost of an Item

The last time I was out shopping on Black Friday, I met a woman standing in line with me. She mentioned that she was there to get “the television.” I remarked that I was only there because my kids wanted to see what Black Friday was all about. She said she already had 5 televisions, but the deal was too good to pass up. Clearly, she didn’t understand the true cost of items.

My high school junior is taking a course in finance. He is constantly talking about the “true cost” of items. Before you buy, ask yourself, “How many hours do I have to work to pay for that item?” Another question to consider, “Do I need this item?”

Additionally, it is important to understand that if you are charging an item, the added interest will be money out the door, and that same money invested, will grow, but the television will eventually be thrown away.

True Cost of an item takes into account time plus finances. Is another television worth spending more time to make more money?

Additional Tips To Avoid Overspending at Christmas

Bringing cash to the store and leaving your credit cards at home will help you stick with your budget. You cannot spend money you don’t have with you.

Also, reducing the frequency of shopping trips. Plan a day for shopping, and don’t just “run to the store” for a few items. Running to the store often through the week will lead to overspending. Planning and assessing your finances helps you reduce the likelihood of overspending!

There you have it, with just a few simple tips, you can avoid overspending at Christmas. This time of the year should be full of joy and happiness, so it sucks that we always think about our finances. These ideas should help you cast your thoughts away as you no longer worry about overspending.