I’m making my Christmas rum cake next week. Yes, in October.
Before you judge me for starting Christmas preparations before Halloween, there’s a reason. The cake needs time to mature, and it’s become one of my favourite holiday traditions.
But while I’m happy to prep for Christmas early, there’s one thing I don’t recommend — spending before deciding what actually matters. Shopping early can spread out the cost of Christmas. It can also give you 10 extra weeks to buy things you never intended to — or hide a gift so well that you won’t find it until spring.
According to a new Retail Council of Canada-Leger survey, Canadians plan to spend an average of $911 this holiday season, down from $975 last year. Among shoppers affected by economic conditions, 39 per cent plan to start their holiday planning earlier. That’s sensible. But starting early only helps if you know what you’re saving and shopping for.
Enter my joy-per-dollar rule: spend more on what creates lasting happiness, connection or meaning — and less on everything else.
Start with joy, not a shopping list
Before listing everything you need to buy, identify the three things that make the holidays special for you. For me, rum cake makes the cut. Maybe it’s Christmas dinner, visiting grandparents or decorating the tree together. Those are your priorities. Everything else is negotiable.
The same survey found 53 per cent of Canadians prioritize meaningful or memorable gifts, versus 23 per cent who prioritize the lowest price.
Now set your total holiday spending limit — gifts, food, travel, entertaining and those little extras that sneak in. Allocate more toward what matters most. And check your junk drawer for unused gift cards or loyalty points that could stretch your budget.
Beware the early shopping trap
Shopping early can help you spread expenses across pay cheques and catch genuine deals, including Black Friday and Cyber Monday sales. But spreading purchases isn’t the same as spending less. Buying $100 worth of gifts weekly for 10 weeks feels manageable — until you realize that’s $1,000, on a $700 budget.
Keep a running tally of what you’ve spent and what’s left, including gifts ordered but not yet received. When the budget is gone, you’re done shopping.
Don’t let AI become your shopping enabler
Ask AI for gift ideas and it will happily suggest dozens of things you never intended to buy — and its recommendations aren’t necessarily the best deals.
Instead, give it your budget, gift list and priorities. Ask where you could cut without sacrificing what matters. Have it suggest thoughtful gifts within a firm price limit, DIY presents or creative ways to celebrate without overspending.
Verify prices before buying, and don’t share sensitive personal information.
Save first, spend later — or spend less
October gives you something valuable: time to save. Set aside $25 a week for eight weeks and you’ll have $200. At $50, that’s $400. Automate savings into a separate holiday account and wait until the money is there before buying. A sale isn’t a bargain if you’re paying credit card interest on it in February.
If the numbers still don’t work, downsize. Fewer gifts. Simpler meals. Less entertaining. More breathing room. Financial peace of mind is a gift to your family, too.
Spend generously where it counts
Not every tradition deserves a permanent place in your budget. Consider gift exchanges, homemade presents or an honest conversation about changing expectations.
But protect the traditions that bring genuine joy. For me, that means rum cake in October. For you, it might be a special dinner, a family visit or an experience your children will remember.
I know. You can't actually put a price on joy. But you can spend in ways that fill your cup, your belly and your memory bank, without emptying your bank account.
Spend intentionally on what counts. Simplify the rest.
This article was originally published in The Star. Lesley-Anne Scorgie is a Toronto-based personal finance columnist and a freelance contributing columnist for the Star.
