As buying power decreases with rising inflation rates, Canadians are focused less on brand loyalty and are instead prioritizing shopping for sales and finding other methods of stretching their dollars. According to Deloitte Canada’s 2022 Holiday Retail Outlook, holiday spending in 2022 is expected to be lower than in previous years due to economic uncertainty.

Before you dash to the store, consider five strategies that can help you get what you want without skidding into a snowbank of debt.

5 Budgeting Tips for the Holidays

Make a plan
Shop early
Get cash back
Save in advance
Manage debt wisely

1. Make a plan

You don’t have to call it a “budget” if that makes it less fun. But it’s a good idea to make a quick list of who gets presents and how much you plan to spend on each person. Seeing the grand total lets you put this year’s gifts in context. If you can afford them and still meet your other financial goals – such as paying down debt and saving – then go for it. If you’re going to regret spending so much come January, scale back a little. See how small changes add up. Then take budgeting to the next level with Budgeting Basics: The Workbook.

2. Shop early

We’re big on shopping local, and shopping early can help make sure you get what you want from the stores in your neighbourhood. It also gives you time to compare prices and take advantage of sales.

3. Get cash back

If you have a cash back Visa, now’s the time to use it. Cash back credit cards give you cash rewards every time you spend. Depending on your gift budget, you may earn enough to treat yourself to whatever your loved ones don’t get you this year. Just make sure you always practice safe credit.

4. Save in advance

We know — the holidays are just around the corner. But, while gift-giving is top of mind, it’s the perfect time to set up automatic transfers from your daily account to your interest-paying savings account. That way, you’ll have a good amount of money set aside for next year’s holiday season. If you’ve already been doing this, congrats! You know it works and are ready to spend!

5. Manage debt wisely

If you overspend — and who hasn’t at some point? — make sure you pay the minimum interest on any debt you rack up. That may mean paying off your credit card balance with a personal line of credit. You’ll get a much lower interest rate and have the flexibility to pay off the balance a little or a lot at a time. Drop by your local branch to chat about other ways to manage debt.

Finally, this isn’t a money-saving tip, but we recommend taking some time this season to step away from the flurry of gift-buying to volunteer in your community or make a donation. Sometimes, the greatest rewards come from giving back for the holidays.