6 tips to avoid over spending

Holiday occasions bring smiles and enthusiasm in thousands of people as they celebrate by exchanging gifts and inviting people for a feast. This sometimes can lead to overspending, thus making a household budget jeopardized.

As reported by Forbes, merriment of special holiday's results in a good feeling to shop for others but ends up being carried away and overspending than anticipated. National Retail Federation claimed that on this year holiday, an average American has planned to spend more than $800 on others and approximately $130 spent on themselves.

According to a T. Rowe Price survey, more than 60% claimed to spend more on their kids than the decided amount, with more than half of the respondents using their credit cards to cover additional spending and 16 percent of them hit on their retirement accounts or emergency funds for the same purpose. This is a boosting factor for the US economy but at the same time it imposes a negative impact on the household budgets, offending mostly the parents who earn.

Here are some holiday's spending tips helps you to keep an eye on your financial status and prevents the jeopardizing of the household economy.

First, teach your kids the financial literacy this holiday by showing them how and why you're buying presents on a budget.

"It's about having conversations with our kids about priorities and tradeoffs," says Stuart Ritter, a senior financial planner at T. Rowe Price. "In the midst of all the holiday excitement, it's easy to lose sight of all the goals we're trying to achieve. How much we spend on the holidays influences how much we have for our summer vacation, for our kids' education, for our own retirement."

Second, throughout the year, put money aside in a separate account dedicated to being just for holiday spending. Through this, you can spend on gifts without worrying about possible financial constraints.

Third, as mentioned by Bank Rate, start your planning a couple of months before the holidays. The last minute planning will confuse you to develop reasonably priced ideas or shop for deals. Make a list and assign the gift budget to each

Once you've whittled your list, set a budget for each present, says Angie Zalewski, co-author of "Cheap Talk with Frugal Friends: Over 600 Tips, Tricks and Creative Ideas for Saving Money."

Fourth, stay within a budget as the intentions can vary upon seeing attractive ads, catalogs and decorated with holiday presents and decorations.

As mentioned by Busy Wife Busy Life, if your budget doesn't allow you to spend on everyone you want to this year, you can apply an alternative way to spread holiday cheer. You can do re-gifting by passing your gift to your friends. Apply Secret Santa in which you set a spending limit and everyone only has to buy 1 gift or gift homemade gifts.

Lastly, have 2-3 options for each person within that price range and stick to those items when shopping. Gifts need not to be expensive. It's the thought that counts.