Save, Spend, and Celebrate:
From budgeting and gift lists to meal planning and travel tips, here’s how to keep your finances in check during the busiest season of the year.
The holidays are coming up fast, and while this season is full of joy, family time, and festive fun, it can also come with a bit of stress—especially when it comes to money. That’s why I’ve put together this detailed financial checklist to help you stay on track, enjoy the holidays, and start the new year without a budget hangover.
Let’s dive in!
Set a Holiday Budget
The key to a financially stress-free holiday is having a clear budget in place before you start spending. Start by reviewing your overall finances to determine how much you can comfortably allocate to holiday expenses without dipping into savings or going into debt. Your holiday budget should include:
Gifts: Factor in everyone from close family to teachers and friends.
Holiday meals and entertaining: Don’t forget about ingredients and extras like table settings.
Travel: If you’re visiting family or taking a vacation, include transportation, lodging, and meals.
Decorations: Plan for a few new ornaments or lights but aim to reuse most of what you already have.
Unexpected costs: There’s always something that sneaks up—an extra gift, last-minute plans, or event tickets.
Set up a separate bank account for holiday spending. Deposit your budgeted amount in there so it’s easy to track how much you’ve spent and how much you have left.
Prioritize Your Gifting List
It’s tempting to want to buy for everyone, but that’s not always realistic, especially if you’re on a tight budget. Start by listing everyone you typically buy for, then break the list into two groups:
Must-buy-for: Immediate family, close friends, and teachers fall into this group. These are people you won’t want to skip on gifting.
Nice-to-buy-for: Extended family, neighbors, and co-workers may fall into this category. Consider DIY gifts, such as homemade treats or personalized crafts, to keep costs low but thoughtful.
Be honest with yourself about what you can afford. It’s better to give small, meaningful gifts that fit within your budget than to overspend and regret it later. If cutting back is tough, talk with family and friends about setting gift limits or doing a Secret Santa exchange, where each person only buys for one other person.
Plan Your Meals & Groceries Early
Holiday meals are often a highlight of the season, but they can also be expensive—especially if you’re hosting. Take time to plan your holiday menus now, whether it’s a big family dinner, holiday brunch, or an intimate gathering with friends. Once you know what meals you’ll be preparing, you can start shopping for the essentials.
Buy non-perishables early: Things like canned goods, baking supplies, and frozen items can be purchased ahead of time to avoid the last-minute rush.
Look for sales: Many stores run sales leading up to the holidays, so keep an eye out for discounts on ingredients like butter, meats, and other essentials.
Split the cost: Don’t hesitate to ask guests to bring a dish or dessert. Potlucks not only lighten the financial load but also make the event more fun by incorporating everyone’s favorite recipes.
Use Last Year’s Decor Before Buying New
Holiday decorations can really add up, especially if you’re tempted to refresh your décor each year. Before buying anything new, take inventory of what you already own. A little creativity can go a long way in making old decorations feel new.
Repurpose what you have: Use last year’s ornaments in new ways—fill clear vases with ornaments or turn old ribbons into garlands.
DIY it: Get crafty with the kids and make new decorations from inexpensive items. Pinecones, branches, and recycled materials can all be transformed with a little holiday magic.
Only buy what you need: If you do want to purchase something new, stick to a few key items. Focus on pieces that will last and that you’ll enjoy for years to come, like a high-quality wreath or timeless ornaments.
Take Advantage of Sales & Cashback Offers
The holiday shopping season is full of opportunities to save—if you plan ahead! Black Friday, Cyber Monday, and other seasonal sales are the perfect time to buy gifts and even stock up on essentials like holiday decorations and groceries.
Sign up for store emails: You’ll often receive exclusive coupons and discounts.
Use cashback apps: Programs like Rakuten or browser extensions like Honey can give you a percentage back on your purchases, or help you automatically apply coupons at checkout.
Price compare: Use tools like Google Shopping or PriceGrabber to compare prices across multiple retailers and ensure you’re getting the best deal.
Check Credit Card Rewards
If you’ve been building up credit card points, miles, or cashback rewards throughout the year, now is the perfect time to use them. Whether you redeem points for travel, gift cards, or even cash back to use toward gifts, this can be a huge help in easing holiday expenses.
Look for gift card deals: Some credit card companies offer better redemption rates for gift cards during the holidays, giving you more bang for your buck.
Use points for travel: If you’re flying or driving long distances, check your card’s rewards program to see if you can cover travel expenses with points or miles.
Cashback bonuses: If your card offers cashback, consider redeeming it to help cover part of your holiday budget.
Plan for Travel Costs
Holiday travel can be one of the biggest expenses, especially if you’re traveling as a family. The earlier you plan, the more likely you are to snag better deals on flights, hotels, and car rentals.
Book early: Prices rise as we get closer to the holidays, so lock in your travel plans now. Sign up for price alerts to get notified of any fare drops.
Consider off-peak travel: Flying or driving during the middle of the week or on less popular days can often save you a lot of money.
Pack snacks and meals: Save on expensive airport food or road trip stops by packing your own snacks and meals ahead of time.
Start a Holiday Savings Fund
While it’s a little late to start a major savings fund for this year’s holiday expenses, it’s never too early to plan for next year. A holiday savings fund allows you to gradually set aside money throughout the year, so by the time the next holiday season rolls around, you’ll already have a cushion in place.
Open a separate account: Many banks allow you to create additional savings accounts, which makes it easy to keep your holiday funds separate from your other savings.
Set up automatic transfers: Schedule a small amount to transfer into your holiday fund each week or month. Even $10 a week adds up to over $500 by the end of the year!
Plan for Emergencies
Even with the best-laid plans, there’s always something that pops up during the holidays—an unexpected gift exchange, a last-minute dinner invitation, or that one forgotten gift. Set aside a small buffer in your budget for these surprise expenses so they don’t catch you off guard.
If you don’t have life insurance yet, this is a great time to look into it. Instant life insurance allows you to apply online, get approved, and have your policy in place without having to go through a lengthy medical exam or waiting period. It’s affordable, convenient, and ensures your family is protected in case the unexpected happens. Many companies now offer customizable policies to fit your budget and needs.
Review your coverage regularly, especially during big life changes like having a baby, buying a house, or starting a new job. It’s always a good idea to make sure you have enough coverage to protect your loved ones.
With a little bit of planning and a solid financial game plan, you can enjoy the holidays without the stress of wondering how you’ll pay for it all. The key is to stay organized, be realistic with your spending, and remember what the season is really about—spending time with the people you love. Wishing you a wonderful, festive, and budget-friendly holiday season!
This article is in collaboration with Responsival!
