We all know the holidays are expensive, which is why so many of us vow to set a budget this year and stick to it. So why is it that we're often still paying off Christmas long after Valentine's Day?

The answer lies in the details.

When most of us set a holiday budget, we're thinking first and foremost about gifts. Some of us even include the costs of throwing a holiday soiree in there too.

But what about the cost of the turkey? Or new outfits? Or baking Christmas cookies? Or even the cost of stamps?

It's those little costs than can add up to mega-sized credit card bills come January, says Alison Griffiths, a personal finance journalist and the host of TV's "Maxed Out" and "Dollars and Sense."

"A lot of time when people talk about holiday spending, they think about gifts. They allocate their budget according to gifts, but they forget all that other stuff," she told Canada AM.

Griffiths say most Canadians know they'll be spending more money at holiday time, but don't realize just how much they're spending. Think of the costs of travelling to visit family and friends, for example.

"Most Canadians don't think of travel, but Canadians can spend up to three times as much on things like gas and transit during the holiday season," says Griffiths.

Even traditions like the annual family portrait can have plenty of hidden costs we don't think about.

Griffiths' own daughter is proof of that: she recently realized that the money she spent on new outfits for her son, a new blouse for herself and haircuts for everyone added up so much that just getting ready for the pictures cost more than the pictures themselves.

Here are a few more examples of little holiday costs than can blow budgets:

  • New clothes
  • New decorations
  • Gift wrap
  • Portraits
  • Christmas cards
  • Postage
  • Restaurant meals
  • Holiday baking
  • At-home entertaining
  • Hostess gifts
  • Charitable donations

Griffiths suggests that if Canadians want to stick to a budget this year, they start by figuring out how much they can afford. Financial planners recommend spending no more than 1.5 per cent of your annual gross family income on holiday spending. So a family making $90,000 shouldn't spend more than $1,500.

"That figure should really include all your holiday spending," she says. "That's not set in stone, but it's a really good place to start."

T o see if your family is likely to top that budget, Griffiths recommends a great holiday budget calculator on a website run by Visa Canada called PracticalMoneyskills.ca. There you can add up all the little costs and see how you're faring so far.

Griffiths says it's no surprise most of us spend more than we plan each year. "We get so overwhelmed by pressures, stress, and guilt," she says.

And it doesn't matter whether you're shopping now or whether you're shopping on Dec. 24; the pressures to spend are always there.

But there are ways to rein the spending. First on the list is to make a list. Decide ahead of time what you're planning to buy, research who has the best prices and stick to your budget.

The Internet can be a great way to research prices, Griffiths says, but she warns the Web holds its pitfalls.

"The bad part about shopping online is that it's hard to control the impulse to buy. There's that big 'Buy Now' button there," she says.

Returns to online retailers can also be tricky - and expensive, since shoppers usually have to front the shipping costs, she notes.

Before heading to the stores to buy things for the home, take a good look at what you already have. You may not remember just how much leftover gift wrap, Christmas cards and canned mincemeat you have from last year. Ditto for the decorations. If they're looking tired, try moving them to new areas of the house, or trade decorations with a friend or neighbour before going out and buying new things.

When it comes to gifts, think of them in three categories: Gifts you buy, gifts you make, and gifts you give of yourself, and emphasize the last two categories.

If you find you can't say no to all the people looking for donations at holiday time, remember that a "gift of self" is the gift that gives twice. Instead of donating to the Salvation Army or food bank, volunteer for them instead. Help out at your homeless shelter or offer to knit hats for the needy.

If, at the end of all your economizing this holiday season, you find yourself under budget, try to resist the urge to spend it. Take the surplus cash and set it aside for next year by depositing it in a GIC or high interest account.

If all goes well, you might even have enough to spend a little more on next year's merriment.