As we inch closer to the holiday season, families across Oklahoma are already budgeting for Christmas-related expenditures.
The average consumer is expected to spend $700 this holiday season, and $900 if they have children, but it is important to remember to spend responsibly and within one’s means.
On Friday, News 9 spoke to Senior Vice President and Consumer Regional Director for the Bank of Oklahoma, Tammy Alger, to learn more about making smart realistic budget while also making sure that you’re taking care of your family and friends?
Alger: Well, first it starts with planning. You know, think about how much you wanna spend on gifts. Think about how much you may spend on travel, on charitable contributions, and get a plan together first on how much you’re comfortable in spending.
Is there a formula? How do you come up with that?
Alger: We call it the Christmas math. So you plan how much you’re comfortable spending, and then you calculate how many paychecks you have coming between now and Christmas. For myself, I have four coming, so I think I’ll probably budget like $1,200. So each paycheck. I’ll take $300, and I’ll put it in my savings fund. If you get paid every other week, then you put the $300 in from that paycheck, and then you put the $300 from the second paycheck, and then your next paycheck. You stay out of it if it’s a box or if it’s your savings account. But the idea is to try to put it away in advance to avoid that after-Christmas shock.
What do you do when you’re someone with a larger family?
Alger: Well, we all want that Christmas magic, right? But it’s really about planning. What are the right traditions you start early with your children so they don’t have high expectations, that’s where I started.
