The average american household spends over $700 on Christmas, and spends an average $270 per child. I don’t know about you, but these numbers seem really high! That is, until I think about the gift I got for my husband, then the gifts I got for my co-workers, and suddenly it seems very easy to reach those high numbers.
I’ve also read that financial experts suggest setting a budget of 3-5 percent of your annual income. That seems small until I do the math. For example, if you make $20,000 a year that would make your budget $600-$1,000! I don’t know about you, but when I’m making 20k a year, most of it is quickly swallowed by rent, car payments, and groceries.
So instead of the suggested 3-5 percent, I decided to take a look at 1-2 percent. Much more reasonable.
For example, if you make $20,000 a year, that would make your Christmas budget $200-$400.
Now let’s say you know lots of people, and you know off the bat not all presents will be equal. I would suggest splitting your people into 3 tiers. Tier 1: your closest friends and family, tier 2: your good friends and family, tier 3: your acquaintances.
For example, my total budget is $200-$400. Each tier has a $70-$130 budget. My first tier consists of my 5 closest people and my budget per person is max $26. My second tier consists of my 10 good friends and my budget per person is max $13. My third tier consists of my 15 acquaintances and my budget per person is max $8.60.
Now if all this math makes you anxious, I’ve made an easy to use excel file for you guys: ChristmasShopping-excel
If pen and paper is more your style, here’s the printable version.
Thanks for reading!
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