OHIO — Holidays are arriving in the Buckeye State, and many Ohioans are seeking ways to stretch their budgets.

The Ohio Department of Commerce recently shared ways to strategically budget for the season and ease some of the financial stress the "most wonderful time of the year" can bring.

What You Need To Know

  • The holidays can bring financial stress for those on a budget

  • By preparing for the holidays, it is possible to reduce the amount of stress around finances

  • The Ohio Department of Commerce recommends saving early on and setting a spending limit

  • Monitoring finances through an app or spreadsheet can help keep records of expenditures

First, the department recommends saving early ahead of the holiday season by setting a small amount of money aside regularly. By doing this, the department said a holiday fund can be built without straining the monthly budget. One suggestion was to consider opening a dedicated savings account specifically for holiday funds.

Another step to take is to set a limit on spending. The Department of Commerce said to begin, review the current financial situation and identify upcoming expenses, then set a limit to avoid dipping into savings meant for emergencies. For holiday costs, the department said it’s important to think about the essentials: gifts, decorations and travel. Following this, factor in day-to-day expenses for a comprehensive budget.

Before spending, the department said it is a good idea to assess the current debt situation by viewing how much is owed and interest rates. For those with significant debt, it’s recommended to lower holiday expenses to instead prioritize debt repayments. 

As an alternative, or as another step, Ohioans can consider creating a separate holiday budget for expenses such as gifts, travel or entertainment. It’s recommended to create a list of recipients for gifts to help estimate the cost per person for their items. By creating a list of recipients, and their corresponding gifts or gift ideas, it’s possible to find better deals on certain items and avoid impulse buys.

By also searching for deal days, such as Black Friday, Small Business Saturday and Cyber Monday, Ohioans have multiple opportunities to find the perfect gift at a reduced price. The Department of Commerce reminds consumers to be cautious of unnecessary purchases because of items being on sale in order to maximize their finances. For those who shop online, it’s recommended to bundle shipping items in order to reach the threshold of free shipping to reduce fees and the environmental impact of multiple deliveries.

The department also recommends setting aside funds for the unexpected expenses that come during the season, from last-minute gifts to forgotten ingredients, the buffer fund will help keep unforeseen expenses covered without disrupting the overall budget.

Similarly to creating a gift giving list, monitoring spending through a budgeting app or spreadsheet can help keep a record of holiday purchases and expenditures. The spending can then be checked against the holiday budget to help make informed financial decisions.

For more tips on budgeting from the Department of Commerce, click here.