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<p>The holidays are a huge deal in the Weston household &#8212; and every year, the expenses threatened to gallop out of control.</p><p>Keeping the holiday joyous and less stressful means keeping a firm rein on our spending. Here&#8217;s what we do, as well as smart frugal tips from others:</p><p><strong>BUDGET FOR EVERY EXPENSE </strong></p><p>By early November, I set up a spreadsheet with budgeted amounts for:</p><p>&#8226; Gifts, with names and how much we expect to spend on each person.</p><p>&#8226; Holiday tips, again with names and amounts.</p><p>&#8226; Travel expenses, including gas, hotel and meals.</p><p>&#8226; The tree, lights and other decorations.</p><p>&#8226; Food, drinks and treats for holiday gatherings.</p><p>&#8226; Holiday cards, postage and wrapping supplies.</p><p>Spreadsheets aren&#8217;t exactly warm, fuzzy and cinnamon-scented. But they allow us to see our total expected holiday spending and to make adjustments as necessary. (Adjustments are always necessary.)</p><p>We&#8217;ve used various ideas over the years to curb expenses, as our fortunes and the size of family gatherings change. One year the adults drew names for gifts. We&#8217;ve also asked friends and more distant relatives to exchange cards instead of presents. We set an overall budget for our daughter&#8217;s presents, then have her prioritize her wish list. Learning to prioritize is an important life skill, so this exercise does double parenting duty.</p><p><strong>Check the &#8216;cushions&#8217;</strong></p><p>Remember the days when you ransacked the couch cushions for loose change? There are better places to hunt for forgotten money. Some places to look:</p><p>YOUR GIFT CARD STASH. Pass them along, use them to buy presents or cash them in at sites such as Gift Card Granny or Raise.</p><p>CREDIT CARD REWARDS. Rewards points can be used to buy gift cards and merchandise. We typically use our rewards for travel, but I sometimes turn points from little-used or orphaned accounts into gift cards.</p><p>THE COIN JAR. Some banks and credit unions will count change for free, or you can use the CoinStar machines found at many grocery and drugstores. We avoid CoinStar&#8217;s exchange fee by opting for electronic gift cards from Amazon, Starbucks and other retailers.</p><p>THE GIFT STASH. Surely I&#8217;m not the only person to tuck away the perfect gift for someone, only to find it years later. Now I keep a bin in the closet to stash presents year-round. The bin also includes some all-purpose gifts (candles, scented soaps, fancy corkscrews) that can be used to thank a hostess or give to the friend who ignored the &#8220;no gifts this year&#8221; agreement.</p><p>THE HEIRLOOMS. Consider passing along a treasured object while you&#8217;re still around to enjoy the recipients&#8217; pleasure. It could be something you inherited or that the other person admired: a piece of artwork or jewelry, a beloved toy, a musical instrument, a grandparent&#8217;s toolbox or baking supplies.</p><p><strong>Take a hatchet to other expenses </strong></p><p>Our holiday spending surge requires cutting other expenses to keep our budget in balance. Ahead of the holidays, we:</p><p>&#8226; Eat out less and plan meals that mostly use items from our pantry.</p><p>&#8226; Scour our recurring bills for possible savings, such as pausing subscriptions or canceling an unused gym membership.</p><p>&#8226; Look for cheap entertainment, such as free community concerts or baking cookies with friends.</p><p>We&#8217;re also changing how we make charitable donations, since the 2017 tax overhaul likely means we&#8217;ll no longer get a tax deduction. Instead of rushing to make big year-end contributions, we&#8217;ve set up monthly payments to our favorite charities. That provides them with a steady source of income and avoids another big December dent in our budget.</p><p><strong>Keep the budget updated</strong></p><p>A budget should be a living document, regularly updated and adjusted. I log our spending every week or so and use apps such as Santa&#8217;s Bag or Christmas List that I can update on my phone.</p><p>This approach does more than keep us honest about our spending. At the end of the season, I have a realistic idea of how much to save for next year. I divide that total by 12, and set up a monthly transfer to an online savings account labeled &#8220;Christmas.&#8221; Having the money to pay for the holidays in cash every year may be the best gift of all.</p><style>
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<div class="metaInfo"><bylineMeta><p>Liz Weston</p><p>Guest Columnist</p></bylineMeta></div><div class="metaInfo"><factboxMeta><p>Online</p><p>2018 Holiday Shopping Report https://nerd.me/2018-holiday-shopping-report</p></factboxMeta></div><div class="metaInfo"><shirttailMeta><p>Liz Weston is a columnist at NerdWallet, a certified financial planner and author of &#8220;Your Credit Score.&#8221; Email: lwestonnerdwallet.com . Twitter: lizweston.</p></shirttailMeta></div>

Liz Weston: Smart Ways to Rein In Holiday Spending