Holiday Budgeting

The situation: Viewer Natalie Hiles wrote in concerned about how she can keep up with holiday traditions in economic uncertainty. Her husband’s office closed in October and his severance package runs out in January.

Jamie Golombek’s solution: Look at last year’s shopping list. You don’t have to start crossing out names. Just get creative with how you show your appreciation.

• Host a holiday party instead of giving a gift.
• Donate to a charity, either your favourite or theirs (plus you get the tax credit).
• Stick to a cash budget.  Withdraw your total budget.  Once it's done, so is your spending.
• Focus whatever holiday budget you do have on the kids. They appreciate the opening of presents more than adults.

If you do have money left over after all of the gift-giving and buying is done, put that money in an emergency savings account. It’s not worth splurging in December if you’re facing tough times in January.