Your Holiday Spending Scorecard: Track, Save, Celebrate

December marks one of the biggest spending seasons of the entire year. If you’re looking to put a little less pressure on your checking account and start next year with more money, here’s how to track, save and celebrate over the holiday spending season.

Track

On the one hand, digital banking has made it easier than ever to track your purchases. Both debt and credit cards automatically register purchases, so you can see exactly what you’ve bought and when. On the other hand, because purchase tracking happens so seamlessly, many shoppers don’t make the time to take a thorough look at where their money is going.

This December, stay on top of holiday spending by tracking every cent you put toward gifts, special meals, decorations, and other celebrations. A budgeting app can be invaluable when it comes to tracking purchases, but a digital spreadsheet or even pen and paper work equally well.

As you’re tracking holiday expenditures, consider bucketing spends into different categories. These could include kids’ gifts, drinks with colleagues, special holiday treats (hello, Pumpkin Spice Latte!), and so on. By putting purchases into different buckets, you’ll get an instant view on top holiday expenses—which can help when it comes to budgeting for next year, and if needed, cutting down on certain costs.

Save

Tracking holiday spending is a great way to understand your true December costs and get a head-start on budgeting for next year—but if you’re also looking to save money in the short term, there’s more work to be done.

December is a tough time to save serious bucks. Prices tend to be higher around the holidays (particularly this year), and with so many reasons to spend—from gifts, to winter clothing, to festive occasions with friends—it’s hard to keep costs in check. But not impossible! A few ideas to save when shopping for the holidays include:

· Shop only secondhand. It’s good for your wallet and the environment.

· DIY gifts, such as hot chocolate mix in a mason jar, are inexpensive and personal.

· Focus on experiences rather than things, such as making paper decorations as a family.

· Utilize libraries to find puzzles, books and games for wintertime fun.

· Invite friends to your home if holiday meals out aren’t in the budget.

Check out the Harvard FCU blog for more tips on holiday shopping on a budget.

Celebrate

After a successful season of holiday saving, take the time to look back on what ideas were effective and what didn’t work so well. Make a note of any financial habits you’d like to carry forward into the New Year. And…celebrate your success! This could look budgeting in an extra treat for January, or opening a new single-purpose savings account where your saved funds can grow.