December 23, 2023
7 mins

Revamp Your Holiday Budget: Smart Strategies for 2024

Summary.This comprehensive article guides readers through crafting a well-planned holiday budget for 2024. It emphasizes the importance of understanding past spending, setting realistic goals...

As we close the holiday season, we must reflect on our previous year's spending habits and plan a more financially sound celebration this year. This year, many of us faced the challenge of managing our holiday budgets effectively. With rising holiday expenses and the temptation of Black Friday and Cyber Monday deals, it's easy to get carried away.

The following are some practical steps to help you navigate holiday shopping and spending wisely to prevent a repeat of last year's financial strain.


Understanding past spending

Holiday shopping illustration

Start by reviewing your bank statements and credit card statements from last year. This will give you a clear picture of your holiday expenses and help you identify areas where you can cut back.

Remember, consumer spending often increases during the holiday season, making it a critical time to track your spending closely.

The following are various facts and comparisons to help you better understand how spending is affected by the holiday season, generally beginning on the Black Friday shopping holiday.

  • Holiday spending overview
    1. 2021: Canadians planned to spend 29% more during the holidays than the previous year, averaging $1,593.
    2. 2023: Total planned spending decreased to an average of $1,347, the lowest amount in five years, due to rising living costs and inflation.
  • Gift spending insights
    1. 2022: Average spending on gifts was $589.
    2. 2023: According to Charter Professional Accountants Canada, gift spending was expected to increase to $645, representing nearly half the anticipated total holiday spending.
  • Travel expenditures
    1. Pre-pandemic: Average spending on travel was $743.
    2. 2020: Dropped significantly to $308 due to pandemic restrictions.
    3. 2021: Increased to $511 but still below pre-pandemic levels

It is important to note that though gift spending increased, 74% of Canadians were concerned that inflation would affect their holiday shopping.


Setting a realistic holiday budget

A realistic holiday budget is your first step towards financial stability during this festive time. Consider your financial goals, the amount of money you have saved, and any extra money you can allocate from your bank account towards holiday expenses.

A good way to start is by creating a holiday savings account, setting a spending limit, and sticking to it. This approach will help you enjoy your holiday shopping trip and spread cheer without the credit card debt burden.

The Financial Consumer Agency of Canada has an awesome free budgeting tool to get you started.

Price comparison of common holiday gifts

Canada’s Food Price Report 2023 is very telling in its 2023 forecasts.

CategoryForecasted increase (2023)
Total increase in food prices5-7%

Note: Food items greatly measure inflationary impacts. If inflation is high, you will always experience higher prices at the grocery store.

Including family in budget planning

Involve your family members in the budgeting process. Discuss with them the importance of careful planning and set a limit for holiday gifts. This collective approach will ensure everyone understands the financial decisions and adheres to the spending limit.

Anticipating last-minute and travel expenses

The holiday season is a time of year when last-minute expenses and travel costs can quickly add up. Include a buffer in your budget for such unforeseen expenses.

If planning holiday travel, look for the best deals and start planning early to avoid high travel expenses. Though plans can change, holiday season travel should be booked at least six months in advance.


Navigating the holidays on a budget

Global News TheMorningShow had a great segment on getting through the holiday on a budget:

Smart holiday shopping

Take advantage of Black Friday and Cyber Monday sales to get the best deals on your gift list. However, beware of impulse buys. Make a shopping list and stick to it to avoid overspending.

Maximizing savings on holiday purchases

The following are some great tips on how to make your dollars go further when making holiday purchases.

  • Early planning: Keep track of your spending. Look for deals and discounts well before the holiday rush. This can help you secure the best prices, especially during sales events. Get a head start; do not shop last minute.
  • Price comparisons: Use online tools to compare prices across different retailers to ensure you get the best deal.
  • Loyalty programs: Take advantage of loyalty programs and cashback offers from your credit cards or retail stores. These prices often offer a good price on all sorts of items.
  • Bulk purchases: To save money, consider buying in bulk, especially for items like holiday meals or decorations.

Creative gift solutions

Consider Do-It-Yourself (DIY) gifts, a thrift stores find, or organizing a Secret Santa with family members to reduce costs. Gift cards are also a great way to manage spending while giving your loved ones the freedom to choose their gifts.


Tracking your spending

Use technology to your advantage. Budget tracking apps can be a great way to monitor your expenses closely. Regularly check your holiday fund in your checking account to ensure you're not overspending.

Avoiding common pitfalls in holiday spending

Online shopping illustration

It is easy to shop online or go to the mall and purchase beyond your intended gift list. Avoid the following pitfalls to ensure you don’t blow out your holiday finances and budget in 2024.

  • Impulse purchases: Stay vigilant against attractive deals that may lead to unnecessary spending.
  • Last-minute shopping: Avoid the high costs of last-minute purchases, especially for travel and gifts. You will find the best price, or at least better deals, on each wish list item if you shop early.
  • Ignoring shipping costs: Be mindful of shipping costs, which can add up quickly and impact your overall budget.
  • Neglecting emergency fund: Remember to maintain your emergency fund and not divert these funds for holiday spending.


Creating and sticking to a holiday budget is the best way to ensure you don't start the new year with unnecessary financial stress. By planning ahead, making informed financial decisions, and tracking your spending, you can enjoy holiday activities and family gatherings without worrying about financial repercussions next year.

A quick note from the Creditpicks team

After diving deep into the essentials of holiday budgeting, it's important to recognize the ongoing value that Creditpicks offers beyond just seasonal advice. Regular visits to Creditpicks can significantly enhance your financial literacy and empower you with tools for better financial management throughout the year.

We are a fully Canadian start-up focusing on Canadian finance and providing tailored content most relevant to Canadian readers. This includes information about Canadian financial institutions, tax laws, and investment opportunities unique to Canada. There are a lot of much larger competitors in the Canadian personal finance market, many of which are owned by American companies. So, we appreciate our growing homegrown audience and support.

Incorporating Creditpicks into your routine gives you a valuable ally in navigating the financial landscape. Regular visits can help you stay informed, make smarter financial decisions, and ultimately lead to a more secure and prosperous financial future.

Note: Though we do not charge our users anything for accessing our site, we appreciate you clicking on some of our third-party partner links if you’re in the market for a new loan, mortgage, credit card, investment account, or insurance. That is how we get paid.


Frequently Asked Questions

  • What should I budget for a holiday?

    Your holiday budget should include gifts, travel costs, meals, and additional holiday activities. Analyze your spending from last year and adjust based on your current financial situation.

  • What is a realistic Christmas budget?

    A realistic Christmas budget is one that balances your desire to give with your financial capabilities. Consider all holiday expenses and set a limit that won’t strain your bank account or lead to debt.

  • How much should you spend for a holiday?

    There’s no one-size-fits-all answer, but a good rule of thumb is to spend what you can afford without dipping into savings for other purposes or incurring debt.

  • What is a normal Christmas budget?

    A normal Christmas budget varies from person to person. It should be based on your disposable income, existing savings, and financial goals, ensuring you have enough money for gifts and other holiday expenses.

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