Sarah Wells: How to keep that pesky elf out of your Christmas budget

Ah, Christmas. The time of year when your to-do list rivals Santa’s, and there are elves everywhere you look — on shelves, Facebook feeds and, if you’re a parent, they even haunt your dreams.

But there’s one place you don’t want that mischievous elf sneaking around, and that’s in your finances.

As we deck the halls and juggle endless lists, it’s easy to let our finances slip away like glitter from the vacuum cleaner.

But this year, let’s make a new tradition — a stress-free holiday.

So, grab a fruit mince pie, put your feet up, and follow these merry tips to keep your wealth safe from holiday budgeting missteps.

Elf-proof your budget (before it melts like a snowman)

The Elf on the Shelf might keep the kids in check, but who’s keeping tabs on the grown-ups’ spending?

Before you max out those credit cards, sit down and map out what you want to spend this holiday season. Think of your budget like the Freo Doctor — keeping your budget cool and relaxed from the holiday spending heat.

Set a spending limit

Make a budget and stick to it like candy canes on a gingerbread house.

Allocate amounts for gifts, food, decorations and any surprise costs (because someone will decide they “need” a new Christmas device, or a fur child vet bill will appear when a candy mysteriously disappears from the tree).

The gift list

Just like Santa, make a list and check it twice. Skip the “whoops, forgot them” gifts and avoid last-minute panic shopping, which often costs you more.

Explore DIY and thoughtful giving. Sometimes the best gifts are the most heartfelt. Whether it’s homemade gluten and nut-free gifts or a retro framed photo, these little gestures are not only kind to the wallet but carry a whole lot more meaning.

Don’t let holiday debt deck your halls

With every screen and website shouting SALE it’s easy to get caught up in the festive spending frenzy.

But remember, January arrives with credit card bills as surely as Rudolph leads the sleigh. If you don’t want debt hanging around like stale Christmas pudding, here’s how to avoid it:

1. Avoid buy now, pay later traps: It sounds like a festive dream, but those delayed payments pile up faster than Christmas calories. If you don’t have the funds now, consider how it’ll feel paying them off post-holiday.
2. Cash or debit only: Stick to spending what’s in your account rather than swiping that credit card. You’ll thank yourself when the New Year rolls around.
3. Keep the end goal in mind: Envision a January without debt stress. Let that future peace of mind guide your holiday spending.

Plan around family expectations — without busting the budget

Family gatherings are one of the best parts of Christmas, but they’re also one of the biggest stressors.

Co-ordinating food, gifts and travel can add up fast. Here’s how to keep the spirit high without a financial hangover:

1. Set family ground rules: Avoid endless gifting by suggesting a family Secret Santa or setting a modest gift budget everyone can stick to. This can easily become a new family tradition.
2. Festive feasts: Christmas dinners can get pricey fast. Instead of playing host and footing the bill solo, turn it into a bring-to-share and ask everyone to bring their favourite dish. It adds variety, saves money and gets everyone involved.
3. Get creative with traditions: Create memories without emptying your wallet. Movie marathons, baking days, or a neighbourhood lights tour can become beloved traditions that cost little to nothing.

An elf-free wallet in 2024: Setting financial resolutions

While you’re making New Year’s resolutions to eat healthier or call Grandma more, toss in a few financial goals too. Make your post-holiday life just as jolly by setting yourself up for financial success in 2024.

1. Plan for next Christmas now: Yep, it sounds crazy, but starting a Christmas savings account or gift card stash now will keep you from a December scramble next year.
2. Review your subscriptions: Those sneaky monthly fees pile up, so take stock of what you’re paying for and see if you can cut anything back in 2025.
3. Get family finances in order: The holidays are a great time to have a heart-to-heart about finances with your partner or family. Talk through upcoming expenses, goals or debts, and start the year on the same page, like a real-life family monopoly game!

Gift time, not just things

With all the gift-giving hype, it’s easy to forget that the most valuable thing we can give each other is our time. While the latest gadget or trendy toy might bring a moment of joy, it’s shared memories that truly last.

Instead try giving the gift of experience, plan a day out together, cook a favourite meal, or write a letter to your loved ones. Sometimes, the simplest gestures are the most meaningful.

Or teach kids about giving. Involve them in a holiday charity project or help them donate old toys to make room for new ones. Teaching the next generation the value of generosity can be the most valuable gift of all.

Keep the elf out of your wallet

Christmas should be a time of joy, not financial juggling. While the Elf on the Shelf is busy making mischief with the kids, you can keep your finances under control with a dash of planning, a sprinkle of mindfulness, and a healthy dose of family creativity.

Then toast yourself from your finance elf.

May your holidays sparkle with love, joy, and cheer, your wallet stay merry, well and full into next year.

Sarah Wells is a Perth money and finance commentator