Make a list, check it twice: how to stick to your Christmas budget

How do you avoid blowing your Christmas budget this season? For Ottawa credit counsellor Pamela George, it's all about planning.

During an interview withCBC'sAll in a Day, George said she starts planning her Christmas list as early as January, saving a little each month until she reaches her holiday budget.

Plenty of people window shop during the holidays in order to get gift ideas for friends and family, she said. Butif you're hoping to stick to yourbudget, having a plan and a list is the way to go.

"Christmasis never a surprise, it happens every December," she said."By the time Christmas comes along, I have a list of what I need to get for friends and family ... if it's not on my list,I'm sorry, I'm not going to buy it."

George said starting to plan early is one way to avoid the temptation to turn to credit cards and payday loans and face a potentially nasty surprise once bills come due in January.

'We don't want to say no to our kids'

Not only is sticking to a list a money-saving tactic, it's also a way to teach kids how to spend responsibly, she said.

"We need to understand that even though we're not formally teaching children about money, that doesn'tmean they're not learning from us," she said."When they see you shopping without a list, without a budget, without any type of plan and just buying what you want, think about the message you're sending your children."

Pressure from kids around Christmas can be a tough thing for parents to deal with. New toys and gadgets are advertised everywhere, and children's wish lists often evolve rapidly.

But instead of giving in to last-minute pleas, parents should act with the future in mind, George said.

"It pains us, we don't want to say no to our kids," she said."But ... these kids who feel that they can just want a $500 item and get it, they're going to be teenagers whofeel the same way, then they're going to be adults that feel the same way."

Keeping up with the Joneses

The same principles hold true when entertaining friends and family during the holiday season, George said. Trying to "keep up with the Joneses" is a surefire way to spend more money than you can afford.

Instead of a ritzy, elaborate dinner, George said something like a potluck could be a better way to celebrate while sticking to your budget at the same time.

"Focus on the simple things," she said. "From my experience, the Joneses are also struggling, because they have their own Joneses that they're trying to keep up to."