9 Tips to Avoid Overspending During the Holidays
The holidays are full of joy, tradition and togetherness — but they can also bring pressure to spend, spend, spend. Between gifts, travel, food, décor and special events, it’s easy for costs to snowball before you even realize it.
The good news? With a little planning and a few smart money habits, you can enjoy a meaningful holiday season without stretching your budget or starting the new year with financial regret.
Here are nine simple ways to stay on track:
1. Set a Realistic Holiday Budget (and Actually Write It Down)
Before the holiday sales hit your inbox, decide how much you can comfortably spend — not how much you wish you had.
Break it down into categories like: Gifts, Food + hosting, Decorations, Events/activities, Travel, Charitable giving, and so on. A clear number gives you guardrails and prevents impulse buys.
2. Make a Gift List and Assign Spending Limits
Overspending often happens when purchases are made on the fly. Instead:
- List everyone you’re buying for
- Assign a spending limit for each person
- Stick to it
This eliminates the last-minute scramble that usually costs more.
3. Use Cash or a Separate Holiday Spending Account
Using a dedicated checking or savings account (or even a digital envelope) helps keep holiday spending in one place. You can automate transfers into this account ahead of the season to build a cushion.
Cash-only works too — when the envelope is empty, you’re done.
4. Take Advantage of Sales — But Shop Intentionally
Sales are helpful when planned, not impulsive.
A few smart shopping habits:
- Check prices ahead of time
- Comparison shop
- Use price-drop browser extensions
- Shop early to avoid expensive panic purchases
5. Give Creative, Low-Cost or Shared Gifts
Gift-giving doesn’t have to be expensive to be meaningful. Consider:
- Homemade baked goods
- Photo books or framed prints
- Handwritten letters
- Experience gifts
- Group gifts where everyone contributes
Thoughtful often beats costly.
6. Track Your Spending in Real Time
Use a notes app, spreadsheet or budgeting app to log expenses as you go. Seeing the numbers helps you adjust before you go over budget.
7. Avoid the Buy-Now, Pay-Later Trap
BNPL services can seem convenient, but small installment plans add up quickly. If you can’t buy it outright within your budget, it might be worth rethinking.
8. Limit Social Media Time & Filter Your Content
Holiday ads, influencer gift guides and “must-have” videos can make even the most disciplined shopper feel pressured. Try:
- Limiting daily social media time
- Mute or unfollow accounts that push frequent shopping
- Use content filters to hide targeted ads where possible
Reducing exposure to constant “buy now” messaging helps keep your budget (and mindset) in check.
9. Turn Off One-Click Buying
Impulse buying is much harder when you have to manually type in your card information.
Disable:
- One-click checkout
- Stored payment info
- Auto-fill card numbers
Adding that extra friction gives you time to pause and ask, “Do I really need this?”
Enjoy the Holidays Without the Financial Stress
The holidays should feel joyful – not overwhelming. By planning ahead, shopping with intention and building healthy digital habits, you can celebrate the season without overspending or dipping into money you’ll need in the new year.
Related Content: