By JEAN CHALIFOUX KEILY, EVP – Director of Consumer Banking, Sunrise Banks
The holiday season can sneak up on us — between parties, travel, and gifts, expenses add up fast. While planning early is ideal, it’s never too late to start making a plan that keeps your spending in check and your stress low.
Creating a Budget That Works for You
Start by reviewing last year’s spending:
- How much did you spend, and on what?
- Were you paying it off in the new year?
- Did you account for travel, food, and decorations?
Use that information to guide your budget for this year. Include every expense — not just gifts — and build in an extra 15–20% for inevitable last-minute purchases.
Budgeting apps and tools can help you track purchases and see where your money goes in real time. Check in weekly to stay accountable. The bonus? You’ll have data to make next year’s holiday planning even easier.
Determine Priorities and Set Boundaries
It’s easy to overspend when you feel obligated to buy gifts for everyone. Instead, try these strategies:
- Prioritize who you’ll buy for and set spending limits.
- Look for loved ones who might value time together more than a gift.
- Track gift ideas year-round to take advantage of sales.
Creativity also stretches your budget. Offer services like babysitting or host a group baking day instead of exchanging gifts. Many families draw names or set spending caps to keep things fun and affordable.
Just as important as budgeting is protecting your time. If saying yes to every party or gift exchange feels overwhelming, choose the events and people that matter most. You can always reconnect with others after the holidays.
Using Credit Cards Wisely
Credit cards can be helpful — if you’re disciplined. They often offer cash back or rewards points that can stretch your holiday budget. Some also categorize spending, making it easier to monitor your progress.
For online purchases, credit cards add a layer of protection since money isn’t pulled directly from your checking account, and disputes are easier to resolve.
If you plan to use credit, include potential interest in your budget in case you can’t pay the balance in full. That way, you avoid financial strain once the new year hits.
However, credit cards aren’t right for everyone. Some people prefer using cash to stick to a set limit — when the cash runs out, spending stops.
Plan Ahead and Enjoy the Season
The holidays should be about connection, not financial stress. Whether you’re planning months in advance or getting started now, be honest with yourself about what you can afford, track your spending, and embrace creative alternatives. By taking control of your holiday budget today, you’ll set yourself up for a season filled with joy — not debt.
Use our financial wellness tools to plan out your holiday spending. Visit sunrisebanks.com/financial-wellness-tools to get started.
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