Throwing a party might seem straightforward—just send out an invite and hope guests show up. However, hosting an event comes with various costs, even for low-key gatherings. Items like disposable plates, decorations, snacks, and party favors can significantly impact a budget, particularly for students living alone for the first time and young adults entering the workforce.
Experts emphasize the importance of setting expectations and establishing a budget to avoid financial complications later. Kalee Boisvert, a financial adviser at Raymond James Ltd., suggests that budgeting doesn’t have to feel like homework. It can be as simple as researching costs online and noting down how much one is willing to spend on various categories in the notes app on their phone.
Boisvert states, “It really just means helping yourself set the expectations of where you want to land approximately on your expenses.” Timing plays a critical role in budgeting as well, according to Tanya Reynolds, senior vice-president with MNP’s consumer and corporate insolvency group. If a party is planned in advance, hosts might have a larger budget because they’ve had time to save. In contrast, last-minute decisions should be approached with a more realistic view of available funds.
The nature of the party influences the budget too. For instance, whether the gathering is a sit-down dinner or a casual snack bar affects food costs. Special occasions, like holiday dinners, can require careful consideration of whether the host will cover the entire expense or opt for a potluck style. Reynolds points out, “Your budget can be whatever you can afford and what seems reasonable without spending beyond your means, avoiding credit use, and not compromising your essentials to cover costs.”
Food expenses are often the most substantial part of hosting a gathering. With rising food prices, the pressure on hosts to purchase snacks or set up elaborate charcuterie boards can be daunting. Reynolds shared an example of her 21-year-old daughter, who faced escalating costs while preparing for a dinner party for eight guests. “When you’re shopping for yourself, the expense may not seem extravagant. But purchasing enough for eight people can skyrocket that cost,” she noted.
Offering an open bar or attempting to replicate social media aesthetics can exacerbate costs further. Reynolds assisted her daughter in creating a budget and they established a plan to divide some expenses among the guests. The daughter suggested that attendees bring an item that aligned with her party theme, in addition to providing a bottle of wine.
To manage costs, they gathered decorations from friends and family, supplementing any gaps with second-hand items from online marketplaces. Janine Rogan, a chartered professional accountant and founder of The Wealth Building Academy, stressed that tempering expectations is crucial, especially with social media trends shaping perceptions of how gatherings should look. A party can be as simple as inviting friends to bring their favorite cheese, making it a relaxed and enjoyable night.
Engaging in activities, like painting ornaments for a Christmas tree or craft projects, provides meaningful interaction without incurring hefty entertainment costs. Rogan states, “Staying within your budget is obviously more important than overspending to impress others.” Boisvert agrees, recalling a client who contemplated purchasing a new couch before hosting family for Christmas. She advised questioning whether that purchase would still be relevant without the event.
Boisvert suggests alleviating pressure as a host to be extravagant, advocating for a more casual approach to avoid feeling overwhelmed and potentially skipping hosting altogether, which could lead to missed social opportunities.
