Managing finances requires a thorough understanding of financial instruments. It's wise to consult an expert before making any financial planning decisions. This blog provides general tips to help you get started.
For a typical middle-class Indian family, we all know festivals make our wallets lighter and stretch us a little too thin. From Ganesh Chaturthi to Diwali, from Durga Puja to Eid to Christmas, our calendar is dotted with celebrations. Add wedding season to this mix, and we're looking at significant expenses throughout the year.
We've all been there – standing in a store, surrounded by twinkling lights and festive music, trying to calculate if we can afford that one extra gift. Let’s be honest - no one likes to budget, especially during festive season, but we’ve all had the one crazy year where expenses went completely off the roof. So, let's look at a few tips to manage finances during the festive season such that we can celebrate our rich tradition and not break our bank balance.
Understanding Modern Festival Expenses
The Traditional Must-Haves:
New clothes for family members
Sweets and dry fruits for gifting
Puja items and decorations
Gifts for relatives and house help
Home cleaning and renovation
Contemporary Additions:
Online shopping deals
Smartphone purchases during festive sales
Party arrangements
Elaborate home decorations
Restaurant dinners and outings
Smart Money Management Tips for Indian Festivals
1. Festival Fund Planning
Create a separate festival savings account
Set aside 5-10% of monthly income for festivals
Use recurring deposits (RDs) that mature before major festivals
Consider festival-specific saving schemes from banks
2. Shopping Strategies
Buy divas and decorations from local markets
Purchase dry fruits in bulk from wholesale markets
Look for off-season sales for traditional wear
Compare prices on different e-commerce platforms during sales
Use cashback offers and festival discounts wisely
3. Gift Planning
Maintain a list of expected gifts for relatives and staff
Consider useful items over decorative pieces
Buy gifts during pre-festival sales
Pool resources with siblings and friends for more expensive gifts
Keep some generic gifts ready for unexpected visitors
4. Food and Entertainment
Prepare sweets at home
Organise potluck gatherings instead of hosting everything
Share festival cooking with neighbours or family
Use local vendors for bulk purchases
Plan menu according to seasonal ingredients
5. The Family Discussion
One of the hardest but most important steps is having an open discussion about festival budgets with family. Some talking points:
Set realistic gift expectations
Decide on celebration scale (Big party or an intimate dinner at home?)
Share expenses among family members
Find meaningful ways to celebrate without overspending
Warning Signs of Overspending
Using credit cards for basic festival purchases
Borrowing money for celebrations
Depleting emergency funds
Skipping regular bill payments
Feeling stressed about finances during festivities
Remember
Festivals are about celebration, not competition
Meaningful moments don't need big spending
Plan ahead for stress-free celebrations
Balance tradition with budget
Focus on creating memories, not debt
Indian festivals are about togetherness, spirituality, and joy – not about emptying our savings. Some of the most memorable festival moments involve sitting with grandparents to make chaklis, puri’s, not the expensive gifts we exchanged.
Consider starting these habits:
Monthly festival savings
Post-festival season sales shopping
Do-It-Yourself decorations and gifts
Community celebration participation
The ideal time to start planning for next year’s holidays is right after this one ends. Post-holiday clearance sales are perfect for stocking up on essentials, and setting aside a little each month can make the months from September to December much less stressful.
Warmest wishes to you and your loved ones!
Looking for tips on healthy eating during the festive season? - check out our blog.
