How to throw a holiday party on a budget when everything costs more

The Story

Throwing a holiday party can be more expensive than people expect, even when the gathering is intended to be low-key, experts say.

They noted that costs can add up quickly for items such as disposable plates and cups, decorations, snacks and party favours, leaving some first-time renters and young adults feeling the pinch.

Kalee Boisvert, a financial adviser at Raymond James Ltd., said people often struggle with budgeting because they treat it like “homework,” but she said it can be as simple as researching online what things cost and writing down what you are willing to spend on specific categories. “It really just means helping yourself set the expectations of where you want to land approximately on your expenses.”

Tanya Reynolds, senior vice-president with MNP’s consumer and corporate insolvency group, said whether the party is planned weeks in advance or decided last minute affects how much room there is in the budget. “If you’re planning a bit out, then perhaps that budget can be a little bit bigger because you’ve been saving for it,” she said. “But if it’s a last-minute decision, then really recognize what you have available to spend.”

Reynolds also said the type of event determines where money goes, including whether it is a sit-down dinner or a snack bar-style gathering, and whether guests are expected to contribute. “If it’s a holiday dinner with friends, are you planning to foot the bill for all of it or is it a potluck?” she said. Reynolds added that a budget should reflect what someone can afford and what feels reasonable without relying on credit or taking money from other needs. “Your budget can be whatever you can afford and what seems reasonable to do without spending more than you have, without using credit, and without taking from somewhere else to cover the cost.”

Food is often the biggest expense, and Reynolds said rising food prices can make it difficult to buy enough for a group. She pointed to the cost she saw while helping her 21-year-old daughter prepare for a dinner party for eight. “If you’re just going out and buying produce for yourself, maybe it doesn’t seem so extravagant, but when you’re purchasing enough for eight people, you can really see the cost of that go up,” Reynolds said.

Reynolds said hosting an open bar and trying to match social-media aesthetics can also contribute to mounting costs. To manage expenses, she described working with her daughter on a budget and then sharing some costs with guests by asking each person to bring something that fit the theme. Reynolds said her daughter asked guests to bring “an item to the table, which was going to keep with her theme,” alongside a bottle of wine, and they then “crowdsourced decorations from friends and family and filled in the gaps with second-hand items from online marketplaces.”

Janine Rogan, a chartered professional accountant and founder of The Wealth Building Academy, said social media trends can drive expectations that become harder to meet. She said hosts can keep gatherings simple, such as having “each person bringing their favourite cheese and calling it a night,” and suggested activities like painting ornaments together as low-cost ways to spend time. “Staying within your budget is obviously more important than spending more than you have to try and impress people,” Rogan said.

Boisvert said hosts should also question whether big purchases make sense outside of hosting. She recalled a client who wanted to buy a new couch before Christmas hosting and said, “Really ask yourself: Would I still be buying this if I wasn’t having people over?”

Boisvert encouraged people to avoid pressure to be elaborate and instead keep things casual. She said, “It’s really about not putting pressure on yourself as a host to be elaborate and stick to being casual; otherwise, ‘you’ll find yourself probably avoiding it altogether.’ ‘Then maybe you lose the opportunity of having fun events with other people.’”