The holidays are full of joy and expenses. Between gifts, travel, food, and all the little extras, it’s easy for holiday spending to get out of control. For young families especially, the pressure to make the season “perfect” for the kids can come with a hefty price tag.
The good news! You can still create holiday magic for your kids and stay on budget. In a recent Good Money Moves podcast episode, Jordan Kaehler, Loan Portfolio Manager at First Alliance Credit Union, shared practical strategies to plan ahead, spend intentionally, and keep the stress off your wallet.
Here’s the key recommends for keeping the holiday magic, without breaking the bank.
A holiday spending plan serves as your roadmap, helping you focus your money on what matters most to your family. Instead of feeling overwhelmed by all the expenses the season brings, a clear plan gives you purpose and peace of mind, allowing you to prioritize the experiences and traditions that mean the most.
Before shopping begins, take time to list who you’re buying for and how much you can realistically afford to spend overall. Divide that total into per-person amounts and stick to it.
As Jordan explained on the podcast, creating spending caps helps you stay focused and “feel in control over that holiday spending.”
Then, remember that gifts aren’t your only expense. Travel, shipping costs, wrapping paper, groceries for baking, and party supplies all add up quickly. Build those costs into your plan from the start so they don’t surprise you later.
Once you’ve set your budget, take some time to talk as a family about what will make this holiday season feel truly special for you. Maybe that means making the trip to visit grandparents, or maybe it’s planning cozy nights in with homemade treats and holiday movies.
If you want to prioritize travel, consider simplifying gifts or meals this year to balance things out. Or, if you want to splurge a bit on creating new traditions at home, try scaling back on decorations or skip expensive store-bought items.
The important thing is to choose what matters most, every family’s priorities look a little different. Remember, you don’t have to cut out the things that bring you joy; it’s about being thoughtful and deliberate with your choices so your spending truly reflects what’s important to you and your loved ones.
When money is tight, creativity matters more than cost. A family movie night, homemade treats, or a DIY craft day can mean just as much to your kids as big-ticket gifts. And if you have unused items at home, don’t be afraid to re-gift, it’s budget-friendly and helps de-clutter your space.
Creating a holiday spending plan is an important first step, but sticking to it can be the real challenge, especially with prices climbing across the board. Here are a few tips to help your family stay on track with your holiday spending plan.
Swiping a credit card can make spending feel less “real,” since you don’t immediately see the impact on your finances. To stay more connected to your budget, consider using cash or a debit card, these methods let you physically see the money leave your wallet or account, which can help you think twice before making an impulse purchase.
If you prefer to use a credit card for its rewards or security features, that’s completely understandable. Just be sure to pay off your balance in full each month to avoid paying interest charges that can quickly add up and outweigh any rewards you might earn.
As Jordan cautioned on the podcast, the interest on unpaid credit card balances “can far exceed any rewards you’ll ever get,” so using credit responsibly is key to keeping your holiday spending under control.
Try keeping a running tally of your spending, this could be as simple as jotting down each purchase in a note on your phone or updating a totals column on a piece of paper. Every time you make a purchase, take a quick moment to record it, along with how much of your holiday budget remains.
This habit gives you a clear picture of where your money is going, helps you spot any potential overages early, and prevents surprises on your January statements. By staying mindful in real time, you’re more likely to stick to your plan and wrap up the season with your finances on track.
Those “four easy payments” might sound like a smart way to stretch your budget, but they can quickly pile up into a bigger problem. These short-term payment programs also don’t typically report to your credit, meaning they offer no long-term benefit.
If you can’t afford the full amount today, it’s better to wait or choose a smaller gift.
Overspending can lead to regret once the holidays end. Jordan put it simply: “If it’s going to overextend you, the aftermath of financial stress isn’t worth it.”
Your kids won’t remember how many gifts were under the tree. They’ll remember baking cookies, watching holiday movies, and spending time together. Keep the focus on what feels meaningful, not material.
Need help planning your holiday spending?
The holidays aren’t meant to be stressful. With a thoughtful plan and realistic budget, you can enjoy the season without financial strain, and your kids will remember the joy, not the price tags.
“The spirit of the holidays is not intended to be stressful.” — Jordan Kaehler
If you’d like one-on-one support building your holiday budget or finding ways to manage existing holiday debt, the team at First Alliance Credit Union is here to help. We’ll work with you to create a personalized plan that fits your family and your goals, so you can focus on making memories, not managing stress.