Christmas Budget Template To Cut Your Holiday Overspending
November 14, 2024
A Holiday Budget Template for your Christmas Budget
The holiday season is a time of joy, family gatherings, and festive celebrations. However, it can also be a time of financial stress. As of November 2023, almost ¼ people were still working to pay off their holiday debt from the previous year.[1]
Planning and budgeting for Christmas can help you enjoy the season without worries of overspending. This guide will provide you with practical tips to create a Christmas budget. And, you can download our free Christmas budget worksheet to help make informed spending and gift giving decisions this year.
What is a Realistic Holiday Budget for Christmas?
A good rule of thumb for a Christmas budget is to spend 1-2% of your yearly income. According to the U.S. Census,[2] the average individual income in Indiana is $35,639, and the average household income is $67,173.
Based on this information, here are some Christmas budget examples for the average Hoosier:
- Between $356 and $713 for an individual.
- Between $$672 and $1,343 for a family.
Of course, you’ll need to adjust the total amount based on your personal finances and savings goals. If you can afford it, you can always save up for a larger Christmas budget throughout the year. If you’ve run out of time to start that this year, explore some last-minute Christmas gift ideas.
You might also like: Money 101: Traditional Budgeting vs Zero-Based Budgeting
How to Set Up a Christmas Budget
First, creating a budget for Christmas requires that you consider all potential expenses.
In addition to your monthly budget plan, holiday expenses can include:
- Gifts.
- Decorations.
- Food.
- Travel.
- Entertainment.
- Christmas Tree.
Start by listing all of your categories and estimating the costs. This will give you a clear picture of how much you need to save and where you can potentially cut costs.
Once you list your potential expenses, set a limit. Decide on the total amount you can afford to spend. Then, prioritize–determine which expenses are most important and allocate accordingly.
Here's how an average income earner might break down their Christmas budget:
- For an individual ($356 to $713):
- Gifts: $175 to $350
- Decorations: $25 to $50
- Food: $45 to $90
- Travel: $25 to $60
- Entertainment: $35 to $80
- Christmas Tree: $25 to $75
- Miscellaneous: $0 to $50
And, for a family ($672 to $1,343):
- Gifts: $325 to $650
- Decorations: $50 to $100
- Food: $85 to $170
- Travel: $85 to $170
- Entertainment: $60 to $125
- Christmas Tree: $50 to $100
- Miscellaneous: $25 to $75
Along the way, keep a record of all of your purchases to ensure you stay within your budget. For greater results, track your spending in a worksheet or budget app.
Recommended: How to Write a Budget Plan and Why You Should
Get Instant Access to Our Free Christmas Budget Worksheet
To make budgeting easier, we've created a free Christmas budget worksheet. It's designed to help you organize your holiday expenses and make sure you stay within your budget.
Download Our Christmas Budget Worksheet
The worksheet includes categories for gifts, decorations, food, travel, entertainment, a Christmas tree, and miscellaneous costs. It also has columns for estimated costs, actual costs, and differences to help you track your cash spending.
How to Use the Christmas Budget
Here's how to make the most of our Christmas budget worksheet:
- Enter your total Christmas budget where indicated at the top of the page.
- Keep an eye on the "Budget Remaining" section at the bottom of the page as you allocate your funds.
- As you make purchases, enter the total spent where indicated.
Review the differences between estimated and actual costs to adjust your spending and money management as needed.
Tips to Make the Most of Your Holiday Christmas Budget Worksheet
To maximize your Christmas budget, review it frequently and adjust as needed. For example, if you overspend in one category, make sure to lower your limit in another.
Next, save all receipts to track your spending and enter all spending into the spreadsheet immediately. This will allow you to see how much you’ve spent and what you have left to spend.
Keep in mind that gifts often take up the largest portion of your budget, so:
- Make a gift list with spending limits for each person.
- Consider DIY gifts.
- Look for sales and discounts.
You might even find more ideas if you explore our budget-friendly last-minute Christmas gift ideas.
Decorations can also be pricey, so reuse decorations from previous years, get creative with DIY options, and shop sales after Christmas for next year’s decor.
Take the Financial Reins Over Your Holiday Season Budget with Centier
Holiday Budgeting for Christmas spending can help you make sure you enjoy the holiday season without financial stress. When you plan ahead and track your spending, you can manage your holiday expenses effectively. Use our Christmas budget worksheet to stay on track.
Remember, the goal is to celebrate and create lasting memories, not to start the new year with more credit card debt. When you practice smart financial habits and plan your holiday budget, you can create a bright financial future.
Ready to take control of your spending throughout the year? To start creating a brighter financial future today, take advantage of Centier’s free online budgeting resources.
Sources:
[1] https://wibc.com/183190/the-big-difference-between-indy-and-carmel-shoppers-during-the-holidays/
[2] https://www.census.gov/data/developers/data-sets/acs-5year.html
