It’s beginning to look a lot like… the holiday season. A most expensive time of year for many people, and one in which overspending can be rampant.

It’s pretty clear why a lot of people spend the way they do this time of year. It’s a time you’re supposed to be showing your appreciation for your family, celebrating and overall having fun. The way many people do this is not cheap. But you should not stretch your finances so badly that you’re still paying it off months later, especially if you’ve been having money problems.

Look at Your Financial Situation

The first thing you need to do is to be honest with yourself about what you can afford to spend on the holidays. If it’s not much, the people you love will just have to understand. There are gifts that don’t cost money you can give.

Think of Alternatives

Gift giving doesn’t have to mean breaking the budget. If you can’t afford gifts, give time. Help out with something that needs doing. This can be especially welcome to elderly relatives who really don’t need more clutter, but will appreciate having a little extra help or possibly even just extra visits.

If you are good at making something, consider handmade gifts. These often cost less money, although some are time consuming to create.

You can also discuss who all should be involved in gift exchanges. Many families draw names to cut down on shopping or agree that adults don’t need Christmas gifts. Things like that really help to control holiday expenses.

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