Keep the family budget intact during the holiday season by planning the amount of money to be spent on gifts for family and friends.

Christmas season can be an expensive and stressful season. With a little bit of planning, Christmas does not have to be paid by credit cards and overdraft. Keep the family budget by saving each month for the holiday season.

Holiday Gift List

The first step is to list all family members, friends, colleagues, and others that the family will give during the holiday season. After the list is created, write the limit beside each person. For example, the teacher gifts limit is $20 but grandma's limit is $40.

After the limits are recorded, brainstorm different holiday gifts for each person. For example, a Chapters gift card and some specialty teas or coffee is a good gift for a reader. If a cousin likes a football team but the jersey is too expensive opt for a football t-shirt and ball cap instead. There are many options to giving a great holiday gift that the recipient will like without breaking the household budget.

Christmas Savings Account

Open up a savings account to put money aside for the holiday season. Simply add the estimated cost of the gifts and divide by the number of months left before Christmas to calculate the total money needed to be saved each month.

For example, a family needs $600 to buy gifts for family and friends. The family only has four months until December. The family divides $600 by four, which equals $150. Therefore, the family must budget $150 for the next four months for gifts. Money needed for gifts can be taken from other areas of the household budget to ensure the budget balances.

Another option is to get a part time job for the holiday season and all earnings are contributed to the Christmas savings account. It is important not to use credit cards to buy gifts; otherwise the budget will not balance and it will cause stress to the family in January.

Christmas Coupons

After the list is created, it is time to look for coupons to save money on the overall cost of the present. For example, art supplies on the list for a toddler. Instead of heading down to the local department store, print a Michael's coupon to receive a discount on the product. Often Michael's gives 40% off many of its regular priced items.

Be creative on where to buy the product. Look around as many places sell identical or similar items for varying prices. Another option is to buy products all at once to get an in-store coupon. For example, Toys R Us during the holiday season usually gives credit notes if you spend over a set amount. Spend the set amount and then use the coupon to make another gift purchase.

Organization and planning is key to keep the budget balanced during the holiday season. Keep to a set gift list to curb excess spending during the Christmas festivities.

Source: http://www.suite101.com