It may feel far away, but believe it or not, Christmas is just around the corner—roughly 150 days away. That’s why financial experts often refer to Christmas in July not just as a marketing gimmick, but as a reminder: if you haven’t already started planning for the holiday season, you’re already behind.
At SolveYourDebts.com, we see firsthand how the holiday season can quickly become a financial burden for families. Between gifts, travel, decorations, food, and festivities, costs can creep up—and for many, this means leaning on credit cards and going into debt. But it doesn’t have to be this way. With some planning and a little discipline, you can enjoy a joyful, stress-free holiday without the debt hangover in January.
Why Budgeting for Christmas Starts Now
Ideally, you should start saving for Christmas in January. That gives you a full 12 months to build a holiday fund gradually—without putting pressure on your regular monthly budget. But if you’re only just starting to think about it now, don’t worry. July is your next best chance to plan ahead, with just enough time to spread out the cost over the coming months.
Let’s break it down: if you want to spend $1,200 on Christmas this year, and you start saving in July, you’ll need to set aside about $200 a month for six months. That’s much more manageable than scrambling to find that money in November or putting it all on a credit card you can’t afford to pay off right away.
The High Cost of Christmas
According to surveys, the average Canadian spends between $800 and $1,500 on Christmas, depending on family size, travel, and other traditions. This includes:
- Gifts for family, friends, teachers, and coworkers
- Holiday meals and baking
- Decorations and lights
- Travel expenses
- Charitable donations
- Entertaining guests
For families already living paycheque to paycheque, these costs can be overwhelming. Without a plan in place, it’s easy to overspend and accumulate debt that takes months—if not years—to pay off.
Avoiding the Holiday Debt Trap
At SolveYourDebts.com, we work with individuals and families across Atlantic Canada to help them get out of debt and stay out of debt. One of the biggest patterns we see is people struggling to recover from holiday overspending. That’s why now—in the middle of summer—is the perfect time to take action.
Here’s how to get started:
1. Set a Holiday Budget
Estimate how much you’ll realistically need for the holidays. Include everything from gifts and travel to food and wrapping paper. Once you’ve got a number, divide it by the number of months left before December to figure out how much you need to save each month.
2. Open a Dedicated Holiday Savings Account
Having a separate account for holiday savings keeps you organized and less tempted to dip into those funds. Even better—set up automatic transfers so you don’t forget.
3. Track Your Spending
Look at your spending over the last couple of months and see where you can trim back. Could you cut out a few takeout meals or cancel a streaming service temporarily to free up cash for your holiday fund?
4. Shop Smart (and Early)
Take advantage of summer sales, clearance events, and even Christmas in July promotions to spread out your gift buying. This can help avoid the stress (and higher prices) of last-minute shopping.
5. Talk to Your Family
If money is tight, now’s the time to set realistic expectations. Talk with loved ones about scaling back this year or opting for gift exchanges, homemade gifts, or shared experiences instead of traditional presents.
A Debt-Free Holiday is a Happier Holiday
There’s nothing festive about starting the new year with financial anxiety. Planning ahead doesn’t mean skipping out on holiday fun—it means taking control so you can enjoy the season without guilt or stress.
It also models great financial habits for your kids and gives you peace of mind knowing that January won’t bring a mountain of credit card bills.
Need Help Getting Started?
If you’re already struggling with debt or feel like you can’t get ahead, we can help. SolveYourDebts.com is a non-profit credit counselling agency serving Atlantic Canadians for over 30 years. We offer free budgeting help, debt management programs, and one-on-one counselling to get you back on track. Book a free consultation today.
Remember: it’s never too early—or too late—to start planning. This Christmas, give yourself the gift of financial peace.
