How to Set a Christmas Gift Budget and Keep Track of It

A gift budget is a number you choose before the shopping starts. It does not make the holidays smaller. It makes them calmer, because you know ahead of time what you can comfortably spend. This is general organizing advice, not financial advice.

Step 1: Choose a total

Look at your finances and choose one number you are comfortable with for the whole season. Include gifts, wrapping, cards, postage, party food and travel. Write it at the top of your page.

Step 2: List the people

Write down everyone you plan to give to. Include family, friends, teachers, neighbors and coworkers. If the list is long, decide whether some gifts could be a card, a baked treat, or a group gift.

Step 3: Divide the money

Give each person an amount. You do not have to split evenly. Some people spend more on close family and less on larger groups. Keep a small cushion for surprise gifts and last-minute needs.

Step 4: Add the extras

Wrapping paper, tape, tags, stamps and cards add up. Put them on the list with a number, so the total is honest. Do the same for party food and travel.

Step 5: Track as you go

Write the actual price next to the planned price when you buy. Mark each gift as bought, wrapped and given. A quick look at the totals tells you if you are on track, and you can adjust the next purchases.

Ways to spend less without giving less

A thoughtful gift does not have to be expensive. Homemade treats, a framed photo, a handwritten letter, a coupon for your time, or a shared experience can mean more than something bought off a shelf. For large groups, a family gift or a gift exchange with a price limit keeps the numbers manageable. Many people also find that setting a limit and sharing it with friends and relatives makes everyone feel more relaxed about the season.

Tips that help

• Shop with a list, and stick to it.
• Keep receipts together in one envelope.
• Start a wish list for each person during the year.
• Do a quick check each week in December.
• If you go over, trim somewhere else instead of ignoring it.

Printables and a spreadsheet

If you like a spreadsheet, our Christmas Gift Budget and Wish List workbook adds up your totals for you and tracks spending by person. If you prefer paper, try the free budget binder sample pages to see how a monthly budget page works.

You can also browse every free sample on the Free Printables page, or see all digital downloads.

See also: Debt Snowball vs Avalanche: Which to Pick and How to Track It.