A Savings Plan for a Debt Free Christmas - Wealth Over Now (2024)

FAQs

How much money to save for Christmas? ›

Calculate how much you need to save each week

Now, take your budget and divide it by nine (because there are nine weeks left until Christmas!). For example, if you decided that you want to spend $1000 for Christmas, you would need to save $112 each week for the next nine weeks.

Start planning early

The sooner you get started, the more likely you are to spot bargains, plus it gives you longer to save up for any big ticket items. So even though you might not want to start thinking about the Christmas season in July, mid-summer is a great time of year to start your Christmas planning.

A realistic budget for Christmas gifts depends on individual financial circ*mstances. However, a common guideline is to allocate around 1-2% of your annual income for gifts.

According to the National Retail Federation (NRF), the average American plans to spend $826 in 2022 on Christmas gifts, food, and decorations. Of that $826 dollars, around 500 are spent on gifts for family members. The most popular of these gifts are clothing, toys, and gift cards.

What age is too late to start saving? ›

It's never too late to start saving for retirement. Even if you'd like to retire in 5 or 10 years and have little to nothing saved—it's still not too late. Start small, and don't just save—invest.

Shopping after Christmas might mean waiting longer for a particular item, but the money you save on that product will make the wait worthwhile. You'll see a lot of deep discounts on products ranging from electronics to clothing, and just about every other retail item that is updated in the January inventory turnover.

Christmas gifts are often exchanged on Christmas Eve (December 24), Christmas Day itself (December 25) or on the last day of the twelve-day Christmas season, Twelfth Night (January 5).

The Budgeting Basics

A common rule of thumb is that you should spend about 1-2% of your yearly income on gifts. But the key is to set a budget that fits your financial situation and priorities, so you can enjoy the holiday season without worrying about money.

A budget of $100 is more than enough an amazing Christmas gift that will knock someone's socks off. No matter if you're searching for a Christmas gift for your parents, your best friend, your siblings, a teacher or a significant other, we've found $100-and-under gift ideas that are sure to impress.

According to Bankrate, for your partner, a budget of approximately $100 is acceptable, though this will depend on a range of factors such as your age and income. For individual family members, a budget of $50 is recommended.

Clearpoint, the credit-counseling nonprofit, suggests a simple target for holiday budgeting: Plan to spend 1.5% of your annual income. For a family that earns $75,000 a year, that works out to $1,125.