Keep the Holidays Magical: Without Making your Savings Disappear or Going into Debt

There’s just something about the holidays that have all the potential to bring warmth, connection and magic. But there's also the same amount of potential to bring, stress, overwhelm and a lot of indigestion. Minus the indigestion (or maybe not), your finances play a huge role on if those feelings get personified or simplified.

Holiday retail spending is projected to reach nearly $990 billion this year; which if you think about it is made up of many many many small purchases over a short period of time. 

On average, people spend around $850 on gifts, travel, and festivities each year, and the pressure to keep up with traditions often leads to financial strain and lingering credit card debt. We often hear “I’ll sign up for coaching after the holidays,” and or “please don’t look at my holiday spending, it’s not reflected of my normal life.”

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But the holidays do not have to disrupt your financial goals. Mindfully planning your holidays will allow you to embrace the season’s joy without sacrificing your stability. Let’s dive into how you can approach holiday spending with clarity and purpose, so you step into the new year with money in the bank and less debt on your credit card.

How Much Do People Plan to Spend During the Holiday Season?

According to Deloitte, the average budget per person for 2024 is $1,778. That's an 8% jump compared to 2023. In 2023, it was $1,652. This is significantly higher than the number reported for 2023 by the National Retail Federation: $875.

Tip #1: Set a Realistic Budget

1. Write out:
1. gifts, 
2. food, 
3. travel, 
4. decorations
5. …therapy (many of our clients book extra sessions during this time).
2. Break down each category further by adding not only a dollar sign, but what the expense is. This keeps things simple and clear. 
1. Gifts:
1. Mom $40
2. Dad $40
3. Sister $30
4. Partner $50
2. Food
1. Holiday food: $200
2. Holiday drinks: $100
3. Travel
1. Boat $100 (where are you going that you need a boat)
2. Taxis $50
3. Airplane points!
4. Decorations
1. Tree $75
2. Lights $30

If you've tracked holiday expenses in previous years, use that data to give yourself a realistic view of this year’s budget. Even if you’re starting fresh, setting an amount for each category helps prioritize what matters most and ensures every dollar has a purpose.

Pro Tip: Create a separate category in your budget for holiday expenses. This keeps your holiday spending visible and distinct from regular monthly costs, so you’re never left guessing where the money went. By focusing on a budget that’s both clear and achievable, you’re giving yourself the gift of a joyful, stress-free holiday season.

Tip #2: Simplify and Personalize Gift-Giving

Gift-giving can be one of the biggest holiday expenses; the average budget per person for 2024 is $1,778. That's an 8% jump compared to 2023. However, there are absolutely thoughtful, creative ways to keep gift giving both manageable and meaningful. 

Start by considering a family-wide agreement to exchange one meaningful item per person or focus on acts of service, like babysitting or cooking a meal—these gifts feel personal and are often the most memorable. For kids and teens, try creating “experience tickets” for activities they love, or, if they prefer cash, present it in a creative way to make it feel more special.

For those with a crafty side, homemade gifts add a unique, personal touch without a high price tag. Simple crafts like crocheting or assembling a personalized recipe book can make beautiful, heartfelt presents. You can also explore secondhand or vintage shops for one-of-a-kind finds that add character and charm without stretching your budget. Simplifying gift-giving doesn’t mean sacrificing thoughtfulness—it’s about celebrating in a way that feels authentic and financially mindful.

Tip #3: Focus on Quality Time Over Material Gifts

The joy of giving and receiving gifts is deeply rooted in our holiday traditions, and it’s completely natural to feel a pang when we don’t see or aren’t able to give the usual piles of presents. This season, consider shifting the focus to creating memories that last longer than the wrapping paper. From cooking a beloved family recipe together to hosting a cozy movie night or volunteering as a family, these shared experiences can bring a different kind of joy—one that deepens our connections. Setting gentle boundaries around gift-giving isn’t about taking away the magic but about preserving what’s most meaningful. By openly sharing these intentions, you can keep the holiday spirit alive in a way that’s both heartfelt and financially mindful. That can sound like: 

• This year, we’re prioritizing our financial health and focusing on experiences rather than gifts. We’d love to celebrate with you by planning a special activity together instead of exchanging presents!
• We’re keeping a smaller budget for gifts this year and I wanted to give you a heads up. This will let us all stay on track financially and still have fun with a few special gifts.

Tip #4: Instead of hosting dinner; host a potluck

Hosting family and friends can be costly, but there are ways to enjoy a festive gathering without bearing all the expenses. Organize a potluck, where each guest contributes a dish, helping to reduce both costs and preparation time. Reusing decorations from previous years and simplifying your menu can also ease the financial and logistical burden of hosting.

Tip #5: Remove Spending Triggers

This season, you’re in control. We’ve all seen the emails—“FLASH SALE! Just for you!” “Last chance to save!”—they’re practically begging us to click and splurge. These messages are designed to get us excited and press that 'buy' button without a second thought (read our sales blog to find out why), amping up impulse spending, playing on our emotions, and making it easy to drift from our goals. 

To keep focused, schedule an an unsubscribing party where you intentionally remove  promo emails or muting social media accounts filling your feed with holiday “must-haves.” You could also consider a social media break in November to skip the ad overload altogether. And when you need to shop, stick to pickup options so you’re only grabbing what’s on your list. By taking these steps, you’re choosing a holiday season that works for you and your goals—because this year, you’re calling the shots.

Tip #6: Stick to Your Debt Repayment Plan Through the Holidays

We know how tough it can feel to balance the joy of holiday spending with the weight of existing debt. The pressure to spend on gifts, gatherings, and festivities can add stress when you’re already working hard to pay off debt. But remember: staying committed to your debt repayment plan is one of the most empowering choices you can make this season. 

Set a holiday budget that honors your financial goals, AND allows you to continue to prioritize any high-interest debt. By holding yourself accountable to your budget, you’re actively investing in a debt-free future—one where you’re not just getting by, but thriving financially. And if the season feels overwhelming, remember that breaking down your debt plan into manageable steps can make all the difference. If you’re looking for additional support with your debt repayment plan, reach out to our team of coaches. 

As you celebrate this season, keep in mind that you’re in control of your holiday experience—and your financial goals don’t have to take a backseat. By sticking to a plan that feels right for you, you’re setting yourself up for a joyful season and a confident start to the new year. Here’s to making memories, enjoying time with loved ones, and ending the holidays feeling proud of how you showed up for yourself and your goals.