Expert tips to ease financial pressure and avoid holiday overspending

Financial experts urge holiday shoppers to prioritize mindfulness amid economic strain this season, offering strategies to manage expenses without sacrificing celebration.

As Americans enter the holiday season, many face the challenge of balancing festive traditions with financial realities. With a tight job market, mounting student loan and credit card debt, and inflation-driven high prices, financial stress has become a common companion to holiday cheer.

“We add on all the years of nostalgia and pressure that we put on the holidays to meet some sort of picture-perfect version,” explains Lindsay Bryan-Podvin, a financial therapist and host of the Mind Money Balance podcast. She emphasizes that spending money isn’t the only way to express affection for friends and family.

Financial experts recommend beginning with a carefully crafted budget. Jennifer Seitz, director of education at family finance app Greenlight, advises comprehensive planning that accounts for all seasonal expenses.

“Be sure to include your travel, your shipping, your seasonal tipping,” Seitz notes. “Knowing what you plan to spend in each category and then having a cap in place can make it easier to avoid debt in January.”

Bryan-Podvin adds that holiday budgets should incorporate regular debt payments to prevent falling behind or accumulating more debt during this high-spending season.

Shopping strategically can significantly reduce overall costs. Shopping expert Trae Bodge recommends leveraging sales, coupons, and holiday discounts. “I’m always looking for maybe a coupon code so I can save a certain percentage off, or I can earn cash back, or I can get a free shipping offer,” she says. Browser extensions like PayPal Honey and Rakuten can help identify these savings opportunities.

Prioritizing what truly matters represents another key strategy. Bryan-Podvin suggests listing all holiday expenses—from travel to celebrations to gifts—and honestly evaluating whether each expenditure feels worthwhile.

“That helps you prioritize what are the things that are most important to you this holiday season,” she explains. This approach helps counter the common tendency to equate spending amounts or event attendance with caring for loved ones.

Setting boundaries has become increasingly important in managing both financial and emotional well-being during the holidays. The season’s social calendar can quickly become overwhelming with work parties, family gatherings, and friend meetups.

“Most people who you say a boundary to are going to understand and some are going to be relieved,” Bryan-Podvin points out. Being transparent about financial constraints, though difficult, can help others understand why low-cost gifts or activities might be preferable.

Seitz has observed a gradual shift away from material goods toward meaningful experiences. “I think it’s really important for families to create alternative forms of joy that aren’t necessarily tied to buying. Kids often remember those memories and those traditions, most of all,” she says.

Creating new traditions needn’t involve greater expense. Simple activities like family pancake-making mornings, board game sessions, or homemade gift exchanges can become cherished rituals that emphasize connection over consumption.

This perspective shift arrives at a critical economic moment. With inflation concerns persisting and economic uncertainties looming for many households, reimagining holiday celebrations becomes not just financially prudent but emotionally liberating.

Financial wellness experts emphasize that the most meaningful aspects of the holiday season—connection, gratitude, and shared experiences—remain available regardless of budget constraints. By focusing on these elements rather than commercial expectations, families can create more sustainable and satisfying celebrations.

As preparations for the holiday season accelerate, these strategies offer a roadmap for navigating financial pressures while preserving the joy and meaning of seasonal traditions.