A Message from Penny Forward Founder and CEO, Chris Peterson

Happy Holidays Penny Forward Members and Supporters,

This week, the holiday season officially kicks off with Black Friday sales! Your inbox is likely overflowing with deals for things you need, things you want, and let’s be honest—things you didn’t even know you wanted until the word “SALE” popped up. It’s exciting, right? But before we dive into our carts (online or otherwise), let’s take a moment to step back and plan. After all, no one wants to start January with a financial hangover.

But first, have you ever wondered where the term “Black Friday” comes from? Here’s the scoop.

The Origin and History of Black Friday

Black Friday isn’t just about sales and savings. For retailers, it’s about profitability. The story goes that the day marked when businesses finally turned a profit for the year, moving “into the black” on their balance sheets. Whether or not that’s true, the name stuck, and today, it’s synonymous with bargain hunting and holiday prep.

Fun fact: In some countries, Black Friday wasn’t a thing until recently. Now, it’s a global shopping phenomenon—proof of the power of marketing!

Still curious? Read more about Black Friday at Wikipedia.

Planning for a Budget-Friendly Holiday

Holiday shopping doesn’t have to mean blowing your budget. With a little planning and creativity, you can give meaningful gifts without breaking the bank. Here’s my approach:

1. Make a List (and Check It Twice)

List everyone you plan to shop for, and assign each a price range. Here’s my holiday budget:

• Kids: $150 each
• Cousins: $50 per gift (2 gifts = $100)
• Holiday party gifts: $20 per party (5 parties = $100)

This gives me a $500 budget. I save $25 a month for holiday gifts, so by November, I’ve already saved $300. That leaves $200 to cover with my regular paycheck—no credit cards needed.

2. Start with High-Priority Gifts

For me, my kids are top of the list. Here’s how I plan for them:

• Abby (13 years old): She loves art, so I’ll start with a $25 set of supplies. A $25 digital gift card lets her pick books or music she loves. That leaves $100 for a couple more gifts.
• Elliott (4 years old): A fun book series and art supplies he can share with Abby are perfect. I’ll add toys or games to round out his gifts within the $150 budget.

I focus on balance—giving each child a similar number of gifts while sticking to my budget.

3. Be Practical for Extended Family

For cousins, I stick to $50 per gift. Headphones, books, or puzzles are popular choices. Buying multiples of the same item can save time and money—and reduce decision fatigue!

4. Simplify Holiday Party Gifts

Candy gift bags are a win for holiday parties. A bulk bag of treats from Costco (about $39) splits into five smaller gifts. Adding festive packaging costs a few extra dollars but keeps me well under budget.

5. Consider Experiences or DIY Gifts

Not all gifts need to come from a store. For example:

• Experiences: Tickets to a local museum, a day out together, or even a homemade coupon for free babysitting.
• DIY Gifts: Hand-knit scarves, homemade cookies, or personalized photo albums can be more meaningful than store-bought items.

Tips to Stick to Your Budget

• Track Your Spending: Use a notebook or an app to log each purchase.
• Avoid Impulse Buys: Stick to your list! If it’s not on there, it’s not in the cart.
• Shop Smart: Compare prices online and look for free shipping deals.
• Plan Ahead: Buying early helps you avoid last-minute splurges.
• Set Expectations: Share your budget goals with family so everyone’s on the same page.

Additional Resources for Holiday Budgeting

Here are some great tools to help you stay on track:

• Penny Forward: Affordable financial counseling services, especially for blind and low-vision people. Great for building a holiday budget!
• Consumer Financial Protection Bureau: Practical advice on managing holiday debt.
• NerdWallet: Tips for finding holiday deals without overspending.
• Dave Ramsey’s Holiday Budgeting Guide: Ideas for a debt-free holiday.
• The Balance’s Budgeting Tips: A straightforward guide to holiday budgeting.

Your Turn!

What’s your go-to strategy for holiday budgeting? Do you have creative gift ideas or favorite Black Friday hacks? Share your tips in the comments—I’d love to hear them!

Remember, the holidays are about joy, connection, and creativity—not financial stress. With a thoughtful plan and a dash of discipline, you can enjoy the season without January regrets. Happy shopping! 🎄

Happy Holidays,

Chris Peterson, AFC®
Founder and CEO, Penny Forward