It is the first Friday of October! So today we are going to talk about Budgeting For Christmas. Wait, what??

I know. I know. But it will be here before you know it and I got a really interesting question from a reader and got me thinking about budgeting for Christmas.

How do you guys budget for Christmas for the kids? I have a 5 year old and a 1 year old and I am trying to come up with a budget on how much to spend on them for Christmas. If you have any tips or advice it would be greatly appreciated!

It really is a great question.

As I thought about it I realized that I have never really set hard and firm rules for Christmas budgeting. I just have a number in mind and try not to exceed that.

Last year I think we spent a combined $65 on both of our children, who were really still babies. And to be honest we gave them too many things.

This is some advice I would give.

1. What to give?

This year we have a new policy.

Four gifts and none of them that big.

Something you want.

Something you need.

Something to wear.

Something to read.

I have heard of several people doing this and I LOVED the idea.

2. Make a line item in your budget.

First of all if you're not making a zero-based budget you should be. Learn more here.

Add Christmas to your budget just like you would anything else. Make a list of everyone you want to give a gift to and then create a gift list around the budget. NOT THE OTHER WAY AROUND!

3. Think of giving differently.

Gifts are great. I love them. But that is not the reason to celebrate Christmas. I am a Christian and I believe that Christmas is a season of worship and celebration. Gifts are a bonus.

Instead focus on creating lasting memories and traditions. I remember far more the fun things we did as a family than I do what I got under the tree.

What about you? How do you budget for Christmas? Tell in the comments below!

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