Holiday spending looks different for every family. Nearly half of U.S. consumers plan to start holiday shopping by October. But, there is no single right time or way to spend during the season.
Some people exchange lots of gifts, while others focus on travel, meals, time together, or seasonal activities. No matter what your traditions look like, creating a holiday budget can help you plan for upcoming expenses and focus your money on what matters most.
How to create a holiday budget in five simple steps
Review last year’s holiday spending
Looking at last year’s spending can give you a helpful starting point for this year. It can also jog your memory about easy-to-overlook expenses, such as holiday tips, shipping costs, and office gift exchanges.
- Check last year’s account records and list your main spending categories and approximate amounts.
- Think about which purchases and traditions felt most worthwhile.
- Write down your top priorities and anything you would like to do differently this year.
Taking a few minutes to look back can give you a clearer starting point and more confidence as you plan for the season ahead.
Set your total holiday budget
Your holiday spending should fit alongside your everyday expenses and other financial goals. Start by deciding how much you can comfortably dedicate to the season.
Then, divide that amount among the expenses you expect. Your categories might include:
- Gifts
- Travel
- Food and gatherings
- Decorations
- Events and activities
- Charitable giving
- Holiday tips
- Shipping
- Other seasonal expenses
For example, if you have $600 available for the holidays, you might set aside $300 for gifts, $150 for food and gatherings, $100 for travel and activities, and $50 for other seasonal expenses.
If you want to build up your holiday fund before you start spending, begin setting aside what you can now. Even small amounts can add up over the next few months. SECU has options to open an additional savings account that you can dedicate to holiday spending.
Talk with family and friends
For many people, time with friends and family is one of the most meaningful parts of the holidays. Talking about which traditions and activities everyone values can help you focus your plans and spending.
- Start conversations early, before plans and expectations take shape.
- Share what matters most to you and invite others to do the same.
- Make room for different preferences, traditions, and financial situations.
- Look for ways to celebrate that make everyone feel comfortable.
These conversations can also spark new traditions that put connection ahead of cost.
Prioritize what matters most
A holiday budget gives you the opportunity to put more of your money toward the people, experiences, and traditions you value.
- Try a Secret Santa or homemade gift exchange if your family loves giving gifts.
- Skip gifts and plan a shared experience if time together matters more.
- Prioritize relaxed gatherings if your loved ones value having plenty of time to connect.
- Choose favorite activities everyone looks forward to instead of trying to fit everything into the season.
Changing traditions can take a little extra planning when kids are involved. Consider asking children to make wish lists with options at different price points and including them in age-appropriate conversations about holiday spending. Read more holiday budgeting tips for parents.
Create a holiday spending schedule
Once you know what you plan to spend, think about when you will spend it. A simple schedule can help you spread purchases across several paychecks and give you more time to compare options.
- Add expected expenses to your calendar.
- Note when you plan to shop for gifts, book travel, buy groceries, or pay for events.
- Give yourself time to compare prices instead of making every purchase at once.
- Check your budget as the season progresses and adjust when your plans change.
Think of your holiday budget like a road map. You can change your route along the way while still keeping your destination in sight.
Six ways to make your holiday budget go further
Being intentional about seasonal expenses can help you make the most of the money you have set aside while creating meaningful holiday memories.
- Make decorations together instead of buying everything new.
- Plan an affordable shared experience, such as attending a community holiday event, hosting a board game tournament, or volunteering together.
- Consider gathering before or after peak travel dates, or use available credit card rewards points to help manage travel costs.
- Make handmade gifts if you enjoy crafting, or shop early to give yourself more time to compare prices.
- Share the cost or cooking responsibilities for family meals, or simplify the menu around a few favorite dishes.
- Explore community holiday programs when they could help your family. If you have room in your budget, consider supporting a local giving program for another family.
Holiday spending checklist
Enter the holiday season with more financial confidence by starting your plan now.
- Create your holiday budget.
- Talk with friends and family about plans.
- Adjust your budget around your priorities.
- Add planned purchases and expenses to your calendar.
- Check your progress, celebrate your wins, and adjust as the season unfolds.
More meaning, more financial confidence
Your holiday budget shouldn’t make the season feel smaller. A thoughtful plan can help you put more of your money toward the people, experiences, and traditions that matter most to you.
And remember, your budget doesn’t need to be perfect. Check in with your plan as the season unfolds, make adjustments when you need to, and celebrate the progress you make along the way.
Ready to get started? Explore our budgeting calculators to start planning, or schedule a financial wellness checkup for personalized support from one of our team members.
