Real talk: during the holidays, even the most disciplined among us can lose our footing. One minute you’re making your gift list; the next, you’re staring at your credit card statement wondering how it all added up. It happens to the best of us. Last year, Americans planned to spend $902 per person during the holidays — an all-time high, according to the National Retail Federation.

Here’s the good news: holiday spending doesn’t have to derail your financial goals – it can be part of your plan to reach them.

Start with your financial values, not your wishlist

It’s easy to let holiday traditions or outside expectations drive your spending. But before you pull out your wallet, pause and ask: What actually matters most to me this season?

• If your value is connection, spending on a family trip, a cozy movie night, or cooking together might feel more meaningful than another last-minute gadget.
  
• If your priority is stability, you might keep gifts simple, host a potluck instead of footing the whole meal, or choose fewer but more thoughtful presents so you don’t dip into savings or add debt.
  
• If generosity drives you, you can still give without overextending yourself financially.

When your spending reflects your values, your holidays feel more purposeful, and you’re less likely to face regret when the bills come due in January.

Experiences over stuff: invest in memories

Research shows that spending on experiences creates more lasting happiness than buying material things. A University of Texas study found that people who spent money on experiences reported greater and more immediate happiness than those who bought physical items.

Here are a few ways to shift your holiday budget toward experiences that save money and strengthen connections:

• Gift an experience instead of a pricey item: A family cooking class or local day trip often costs less than the latest gadget, but the shared time makes it more meaningful.
  
• Create a “year of memories” box: Have each family member write down a simple, low-cost activity they’d love to do together — like a picnic, hiking a local trail, or a themed movie night. Place the slips in a box and pull one each month.
  
• Host an experience at home: Swap some gift-buying for a holiday baking day, board game tournament, or movie marathon.
  
  

By rethinking the tradition of buying “more stuff,” you can keep holiday spending under control while giving the kind of gift that truly lasts: time, joy, and memories.

Giving thoughtfully without overextending

The holidays are a season for giving. With a little planning, your charitable donations can be both meaningful and budget-friendly.

• Set a giving budget: Decide in advance how much you can donate without affecting your essential expenses or long-term financial goals. Treat it like any other category in your budget.
  
• Give time or skills: Volunteering, offering professional expertise, or helping a local organization can be just as impactful as cash donations.
  
• Target your giving: Focus on a few causes you care about most to maximize the impact of your contributions while staying within your budget.

Automate your savings so holiday spending starts from a stronger base

The holidays are a joyful time, but they can also be a period of financial stress if spending isn’t planned. One of the best ways to stay on track is to start early by setting up a dedicated holiday fund. Contributing regularly lets you build a cushion for gifts, travel, and celebrations well before the season arrives. Having this money set aside gives you a clear spending limit and reduces the temptation for last-minute splurges, so you can enjoy the season with confidence.

As the celebrations draw near, it’s important not to put your savings on hold. Continue to automate transfers to your savings account, even while spending on gifts and festivities. By building these contributions into your holiday budget, you ensure that each purchase supports both your seasonal plans and your long-term financial goals. This approach makes holiday spending intentional, keeps your budget under control, and helps you enjoy the season without sacrificing progress on bigger financial priorities.

Make the most of the season without losing your footing

Approaching this time of year with intention allows you to give and connect in ways that are meaningful, memorable, and manageable. When you plan ahead and make thoughtful choices, every gift, outing, and donation becomes a reflection of your priorities.

This year, let your holiday spending be a tool, not a trap. With the right approach, you can enjoy every moment while staying on track financially — setting yourself up for a stronger, more secure year ahead.