No one wants to be a holiday Scrooge, but no one expects you to start the new year in debt due to unbounded holiday generosity. It’s fun to splurge – until the hangover hits. Some proactive planning can help you resist swiping that card for “just one more” gift, last-minute impulse buy, or another outdoor display. Here are some tips to keep your holiday budget intact and your new year stress-free.

• Take the Reins. Before you get caught up in the holiday rush and fly high into debt, get on the nice financial list and calculate what you can comfortably spend without dipping into savings or accruing a credit card balance. Include everything – gifts, travel, food, decorations, and events – and write them down. Use a simple note app or spreadsheet to track what you’ve spent versus what’s left. Seeing the numbers in black and white helps keep spending in check.
• More Meaning, Less Money. We know that the most memorable gifts don’t need to be attached to money – it can just be hard to objectively remember that when we’re surrounded by holiday glitz. Today’s hardware and software technology makes it easy to customize holiday cards, create photo albums, or make crafty creations. You can even gift your time for babysitting, house-sitting, tutoring, dog walking, or cooking a meal for someone who could use a break.
• Avoid “Buy Now, Pay Later” Temptations. You’re likely to see BNPL – Buy Now, Pay Later – offers both in stores and online this holiday shopping season. These delayed-payment offers might look like a smart move, but they can quickly add up to multiple future bills that hit all at once in January. They also come with increased risks and complications. A good rule of thumb: If you wouldn’t buy it with cash today, it’s best to skip it. When you do use credit, pay it off quickly to avoid high interest charges that turn small purchases into expensive regrets.
• Plan for Group Gifting or Secret Santa. Instead of buying for everyone in your circle, suggest a group gift exchange or Secret Santa. Setting a price limit ensures fairness and keeps everyone’s costs down. It’s often more fun, too, as you can witness your circle’s creativity within the stated guidelines like “handmade only,” “things we make with socks,” or “gifts under $20.”
• Watch for Hidden Costs. Don’t overlook the many little extras like wrapping paper, postage, travel snacks, or outfit accessories that can quietly chip away at your budget. A few smart swaps, like using last year’s gift bags or hosting a potluck instead of catering or buying groceries for an entire meal yourself can free up funds for other holiday costs.

Start the New Year Strong

When the holidays end, review what you spent and make honest notes about what those expenditures added to your holiday experience. By rating your purchases and expenses, you can make a reminder for which items to substitute or forego completely next year. Also, if you used credit cards this month, make a payoff plan that targets high-interest balances first. Then, start a small “holiday fund” for next year; setting aside even $10 or $20 per paycheck adds up fast. You can also check with your bank or credit union to see if they offer a holiday savings account.

A little planning and mindful spending can keep the season merry without financial stress in January. Give with heart, not with haste and financial waste!