How To Plan for These 5 Sneaky Holiday Expenses, According to Rachel Cruze

©Rachel Cruze

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On a recent episode of The Rachel Cruze Show, the personal finance expert reminded viewers to prepare their budgets for the year’s three final major holidays — and spending events: Halloween, Thanksgiving and Christmas. Allowing holiday expenses to sneak up on you could mean starting the New Year in debt.

According to Cruze, here are the top holiday costs to watch for that can break your budget.

Holiday Cost Predictions for 2024

When planning your holiday expenditures, knowing what others expect to spend may help you determine if your budget is reasonable. Here are the average costs for each holiday. Travel costs aren’t included.

• Halloween: You might not give the cost of Halloween much thought, but Americans were expected to spend $103.63 on costumes, candy, décor and greeting cards this year, according to the National Retail Federation. Keep this figure in mind for next Halloween.
• Thanksgiving: The American Farm Bureau Federation performs an annual survey to determine the cost of a Thanksgiving dinner. The numbers for 2024 aren’t in yet, but in 2023, the survey determined the average cost to feed 10 people and have some leftovers was $61.17. So, you should probably budget about $6.20 per person this year.
• December holidays: The average consumer is expected to spend $902 per person for gifts, food, decorations and other holiday-related expenses in 2024, according to the National Retail Federation’s latest survey data.

Planning for and Saving on Sneaky Holiday Expenses

To avoid costly holiday surprises, list every expenditure you think you’ll have and estimate the cost. Then, determine how much you can reasonably afford to spend.

If you need to trim the budget, Cruze said to be realistic about how much you can cut back — getting too extreme with trimming the budget may lead to last-minute splurging. Instead, cut back on these five sneaky expenses with her tips.

Clothing

Take a quick inventory of clothes you can wear to holiday events. That way, if you must buy a new pair of shoes or an outfit, you’ll have time to shop sales or secondhand stores.

Also, only buy what’s necessary. As Cruze pointed out, do you really need another party dress?

Gifts

Creating a holiday gift list — and sticking to it — is a must if you hope to stay within your budget. Cruze recommended using cash, but if you need to use your credit card for some gifts, sticking to your list can ensure you only spend what’s necessary and what you can afford to pay off at the end of the month, so you don’t pay interest.

If your budget is exceptionally tight, consider drawing names for a gift exchange with family or friends instead of buying for everyone, or set spending limits to keep expectations clear. Also, make your shopping list as early as possible to take advantage of holiday sales.

Décor

Unless you’re just starting out and have no holiday decorations, you probably can avoid spending on décor this year. However, if you need new tree lights or a Thanksgiving centerpiece — or, like Cruze, you simply enjoy holiday décor and it brings you joy to choose new pieces — see if you can get by until after the holidays to take advantage of deep after-holiday discounts. You could also use another Cruze strategy and find what you want secondhand.

DIY décor is another money-saving option that’s also a fun holiday activity.

Food

Just because a holiday dinner is at your house doesn’t mean you have to cover the entire cost. Cruze said, “If you are hosting Thanksgiving, do not be afraid to delegate.” Perhaps you can provide the turkey and stuffing, and ask others to contribute a side dish, dinner rolls, desserts or drinks.

Even if you choose to foot the bill, by creating your meal plan early, you can stock up on needed ingredients during pre-holiday grocery sales.

Travel

Travel costs can add significantly to your holiday budget, especially if you’re flying. According to Consumer Price Index data, airline tickets are up 25% this year, the most significant jump since 1989.

Cruze said to weigh your travel options and plan early to save. Determine if driving is a more affordable option than flying. If you must fly, early planning can mean avoiding the higher cost of last-minute flights.

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