The winter holidays bring a lot of joy but also financial pressure. During this period, temptations are everywhere: attractive deals, promotions at every turn, and the desire to give gifts to loved ones. We discussed how to plan holiday expenses and get through this period without budget holes with economic expert Eugen Ghiletchi, head of the Financial Sector Reform Component within the USAID Institutional and Structural Reforms Program in Moldova.

20% for Holidays

The first step to a healthy budget is to allocate a clear amount for the holidays, which should not exceed 20% of your monthly income.

"If you anticipate large expenses, such as gifts or decorations, start saving in advance", recommends Eugen Ghiletchi.

It is important to set aside a reserve for unforeseen expenses, such as extra festive meals or forgotten gifts.

"Avoid, as much as possible, resorting to loans or consumer credit. Spend only what you have available and do not let yourself be influenced by social pressure or aggressive marketing strategies", suggests Eugen Ghiletchi.

The focus should be on the essence of the holidays and the time spent with loved ones. By keeping things simple and balanced, you can enjoy the holidays without financial worries, the expert adds.

Prioritize Expenses!

Some purchases can be postponed. Expenses for new seasonal clothing can be delayed for other months, especially since prices for winter clothes and footwear drop significantly in January and February, during the real winter sales. Similarly, appliances or other more expensive items can be purchased later if they are not urgent.

On the other hand, if savings have been made beforehand, the holidays can be an opportunity for planned purchases. "December discounts can be advantageous for buying a necessary piece of furniture or booking a summer vacation at a better price. However, these expenses must be planned in advance", explains Eugen Ghiletchi.

Be cautious about "discounts." Many offers during this period are just marketing strategies. "Compare prices across multiple stores and check the discount history to see if the price has really dropped. Don't be fooled by colorful tags suggesting big savings", warns the expert.

As for the payment method, the choice depends on discipline. "Cash payments help you better realize your expenses, as you see the money disappear from your wallet. On the other hand, online payments give you a clear record in your banking app." "Sticking to the financial plan is key, regardless of the payment method", the expert added.

Organization and Moderation

Planning ahead reduces stress. Planned shopping and clear lists are your best allies against impulsive spending.

"Just like grocery shopping, don't go to the store without a plan. Know what you need, compare prices, and stick to the list", emphasizes Eugen Ghiletchi.

The lack of a plan, rushed shopping, and social pressure are the most common mistakes. Another frequently overlooked aspect is social pressure, which drives many to overspend. Whether it's expensive gifts or lavish parties, these expenses are often made to impress, not out of genuine need.

"A wiser approach is to focus on symbolic gestures and memorable moments. A personalized gift or a shared activity can have greater emotional value than an expensive item, while keeping your budget under control", says the expert.

Through organization and moderation, the holidays can be a time of joy without financial stress. "The most important lesson is to focus on what truly matters: special moments with family and friends. And let's not forget the true meaning of this holiday season", concluded expert Eugen Ghiletchi.

According to an iData study, this year Moldovans will spend about 7.8 billion lei on holidays. New Year's Eve remains the most popular event, celebrated by 94% of citizens, followed by Old Christmas (89%) and Old New Year (77%). The average budget allocated for a Christmas tree and decorations is 1,112 lei, but most people spend less, around 500 lei. Gifts are a priority for many, with an average of 2,144 lei planned, while festive meals for Christmas and New Year's Eve involve expenses of approximately 1,800 lei and 1,650 lei, respectively.

Doina Bejenaru, IPN