Your Guide to a Financially Healthy Holiday Season

The holidays may be joyful, but if you’re not careful with your spending, they can also leave you with a sense of dread and regret.

In 2023, 34 percent of Americans went into debt for the holidays, by an average amount of $1,028.

The good news is that number has come down over the past couple of years, falling to its lowest number since 2017. 

But holiday spending is still a struggle for most people, with seven in 10 people reporting that they usually go over budget on their holiday expenses. 

That doesn’t have to be your story, however. You can thoroughly enjoy the holiday season without starting the new year off in debt. Here are a few ways to keep your finances healthy during the holidays:

Create a budget for a financially healthy holiday season

Have you ever gone to the grocery store without a list, only to come home with an excess of snacks and treats you never planned to buy in the first place? Holiday shopping can pose a similar challenge, especially when it’s Christmas Eve and you’re tossing every possible stocking stuffer into your cart.

Creating a budget for the holidays gives you the freedom to enjoy the holidays without the nagging guilt that you might be undermining your financial goals.

Prioritize your spending 

The best way to avoid overspending during the holidays is to start with a plan. It’s not just about gifts, either. If you plan to travel, host parties, donate to charity or purchase new clothes or decorations, those expenses should be included as well. 

Start with a brain dump of your ideal 2024 holiday season. Include events you want to attend, trips you’d like to take, gifts you plan to buy, etc.

From there, you can edit. Prioritize the most important expenses, and then reference your budget to see what else fits. This process will help you determine where you really want your money to go this season.

Shop early and watch for sales

Many people assume Black Friday and Cyber Monday deals are the best of the holidays, but that’s not always the case. Online and in-store retailers offer discounts all season long, and some are even better than the typical sale days.

If you know what you want to buy early in the season, you can sign up for alerts, compare prices and keep an eye out for sales when they happen.

Find new ways to gift

Gifts don’t have to be flashy or pricey to be meaningful. Something homemade or personal to you and the recipient can be special without being expensive.

You can also give the gift of time; spend an evening learning to cook a new meal together, buy tickets to a museum or plan to visit that new coffee shop in town.

For children, paying for an annual pass to a zoo or a play center can be another great way to provide an experience at any price point.

Avoid last minute stress for a financially healthy holiday season

Whether you’re planning a trip or shopping for a gift, waiting until the last minute can be stressful and expensive. Planning ahead gives you the opportunity to seek out deals, make thoughtful decisions and spread costs out over time.

Whatever your holiday plans include, taking some extra care now to strategize can give you the best gift of all: peace of mind. That extra bit of preparation goes a long way in making the holidays both merry, and financially healthy.

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