It’s beginning to look a lot like Christmas…
It’s true! We may just be starting to smell pumpkin spice in the air, but according to Northwestern University, many retailers start promoting holiday sales as early as September. With one in three Americans beginning their gift buying before Thanksgiving, it’s no surprise that the holiday season can feel financially overwhelming before it begins. So, how can we prepare for the season without breaking the bank?
The first step is creating a budget. Going into the holidays without a spending strategy is like Santa’s sleigh without Rudolph. The team moves forward, but it’s easier when there’s a clear guide leading the way. Before adding items to your cart or making a wish list, create a plan that includes the small stuff. Seemingly insignificant expenses like wrapping paper or that dish to pass for twenty people at the office can add up and create budget busters. When in doubt, it’s better to over plan than underestimate.
Once your plan is complete, remember that your budget is a spending limit, not a spending requirement. If you have budgeted $50 for your niece and you find the perfect gift for $35, congratulations, you just saved $15! It can be tempting to continue shopping until you’ve spent the entire amount, but it isn’t necessary. Think of the bargain as money saved, not money that needs to be reassigned. Your niece will love her gift, and you’ll feel proud of your savvy shopping skills.
A great way to motivate yourself (and your family) to stay on track with your spending strategy is to make a goal. According to the Deloitte Holiday Retail Survey, the average consumer spent roughly $1,600 on holiday related expenses in 2025. Setting a saving goal alongside your spending plan can make budgeting feel more rewarding and help everyone in the household feel engaged.
Have your family try making a goal statement. For example, “If we save $300 this holiday season, we will save $100, spend $100 on a family fun night, and donate $100 to our favorite charity.” Not only does this approach encourage mindful spending, but if you have children, it also creates opportunities to save, celebrate, and give back while teaching valuable money management skills.
Once the leftovers are gone, you’ve rang in the New Year, and the mountains of boxes are gone, take a moment to reflect. What worked well this year? A budget is a tool that should evolve with your needs. Use what you learned to build an even better plan for 2027.
After determining how much would be needed for next year, start saving right away. Setting aside small amounts in a dedicated account throughout the year can make holiday shopping feel less stressful and, dare we say, more enjoyable! A budget isn’t about restricting yourself. It’s about gifting your future self financial confidence and control.
Allow us at CoVantage Credit Union to be the first to wish you a Happy Holiday Season! If you create and meet a holiday saving goal, let us know! We’d love to hear about it!