Your guide to wise holiday spending

Your guide to wise holiday spending (Photo: iStock)

Edith Siddondo, a certified money coach and financial empowerment trainer, says enjoying the festive season starts with budgeting from a place of clarity. She believes clarity regulates money behaviour in the same way a thermostat regulates temperature. When you understand your priorities, capacity and goals, you are far less likely to fall into emotional spending.

Edith suggests creating this clarity by listing all expected expenses: food, travel, gifts, hosting, contributions and clothing and allocating realistic amounts to each. There is no standard percentage of income that should go towards holiday spending, she says, because festivities are social by nature, and spending money to nurture relationships is normal. However, festive spending should never compromise long-term goals.