Tips and ideas to stay out of debt this holiday season. 

Do OneThing: Make a list of everyone you need to buy a gift for this season. Then, carefully go over the list again and decide how much you can spend on each to keep your budget in check. 

Plan Ahead to Splurge Less

In case you need a reminder, the holidays are no time to go into debt. And yes, we know this is easier said than done. In a world where social media influencers are encouraging us to splurge – and we can buy things on our smartphones with two clicks – it can be hard to reign in the desire to shower gifts on our nearest and dearest (and ourselves).

No Debt Holiday Season. But here’s the thing. Your friends and family don’t want you to put yourself in a difficult position come January just so they have a few more gifts to unwrap now. And it’s possible to have a perfectly lovely season – and stay out of debt – if you remember a few key strategies.  

We checked in with folks who handle finances full-time to see how they keep their spending under control during the most wonderful (and expensive) time of the year. Here are some of their best tips for staying out of debt while still enjoying the season.

Create a Holiday Budget

Brandon Gregg, a certified financial planner with BBK Wealth Management in Lafayette, Indiana, encourages clients to:

  • Plan Ahead whenever possible and set up a spending plan for the holidays.
  • Review Cash Flow. If you haven’t done this already, now is a great time to review your current cash flow situation.
  • Budget Accordingly. “Knowing the exact spending amount going into the holiday season will bring confidence and a sense of relief that it won’t break the bank,” says Gregg. 

In other words, don’t plan to spend more money than you have, period. Living within your means during the holidays may be a real challenge, but if you create a budget and then follow it, you are setting yourself up for success in 2025, financially speaking. 

Pause Before You Purchase

Limited-time offers and flash sales are designed to make us want to spend our money for fear of missing out on a great deal. It’s very easy to be impulsive in the moment, notes Gregg. That’s why it’s a good idea to:

  • Pause for a few minutes before you complete an online purchase.
  • Get up from your laptop, put down your phone, and get some water or take a walk.
  • Think about if this purchase is absolutely necessary and fits within your budget.
  • 24-Hour Rule. For large purchases, sleep on the decision, and give yourself a good 24 hours before taking the plunge.  

Unsubscribe to Emails and Text Alerts

Here’s a way to declutter your inbox and help save some cash. The emails alerting you to specials on steaks, wine, and shoes that keep popping into your inbox or pinging your phone can be silenced with just a few clicks. Removing these temptations to make unplanned purchases can help you stick to your budget now and in the new year.

Gifting Alternatives

Even if your family or close circle of friends have never done this before, it’s perfectly acceptable to change up your holiday traditions if things are tight, says Gregg.

  • Experiences. “You could also plan a family game or event in lieu of gift giving. Most families enjoy the time together more than a gift anyway.” 
  • Draw Names. You can have your group draw names so that everyone only has to buy one gift instead of a dozen or more. 
  • Secret Santa. Joel Chouinard, founder and lead planner of SharpEdge Financial, says he and his extended family plan a Secret Santa gift exchange: “This prevents us from having to purchase a gift for 15 different people. Also, it allows us to spend a little bit more on the one gift.” 

Maintain Long-Term Goals

Just because the holidays arrive doesn’t mean you can neglect your financial future, says Chouinard, who reminds his clients to:

  • Continue saving for retirement
  • Pay down debt
  • Make regular investments

What about a year-end bonus? He suggests using year-end bonuses – for those who receive them – strategically to boost your financial goals. One great idea is to use a bonus to start or build an emergency fund.  

Plan Ahead for Next Year 

Starting in January, Chouinard says:

  • Set aside a certain amount each month in a savings account for the next holiday season.
  • Automatic Transfer. An easy way to do this is to set up an electronic transfer so that the money leaves your main checking account before you have a chance to spend it.

Before you know it, you’ll have a sizable chunk of money set aside for next year. 

-Reporting by Jean Chatzky and Casandra Andrews for SavvyMoney