How to Manage Your Holiday Spending

There is nothing better, nothing more joyous, than giving during the holidays. The sparkling eyes of children under the tree tearing into packages on Christmas morning; the laughter at grandma’s house as gifts are opened. It all makes your heart swell with joy—except for the holiday spending.

Along comes January and the bills and that joyous heart suddenly drops.

Don’t panic! Remember, you aren’t alone in this post-holiday boat.

Take a deep breath, then let it go. It’s already happened. We can’t change it. Focus on moving forward and what you learned from this year’s spending habits. Communicate your stress and worries with your spouse.

This is the point where you can begin to put plans in place to make sure the post-holiday sticker shock isn’t so great next year. That doesn’t mean you take all the fun and joy out of the holidays; you just need to figure a way to make them more affordable.

A good first step is a family meeting. Gather everyone around the dining room table and share ideas about spending and saving habits for the next year. Together, pick a few simple goals to begin. This is also a good time to look at your spending from the past year and begin putting together a budget for the next holiday season.

It’s also a good time to create boundaries for spending on family members. Set limits and stick to them!

There are plenty of cool options for inexpensive, but fun and functional gifts. Here are a few:

• Look for buy-one-get-one-free options on items like candles and other functional household items.
• Don’t be afraid to check out some of the big-box club stores, like Sam’s or Costco. They’re great places to find items like books at a low cost.
• Urge kids to give parents gift certificates for “one house cleaning” or “emptying the trash for a month”—things that are needed, functional, and appreciated.
• Do deep searches online for clearances items, especially places with low or no shipping charges. 

Once you’ve got a budget set, it’s easier to set aside funds for the next year’s gift giving. It sounds old fashioned but join a Christmas club—most credit unions have them. You pick the amount you want to deposit each month, and you cannot withdraw it until November.

If you can’t find a Christmas club, start a separate savings account just for Christmas, and set up an automatic deposit for it. And if you get a tax return, put some of it into this special savings account.

Another great way to save on gifts for extended family members, especially for nephews, nieces, and cousins, is to draw for names. It’s always fun to draw names at a family Thanksgiving gathering and then open gifts during the holidays.

One of the best ways to avoid the after-holiday credit card blues is to limit your credit card use during the holidays. Buy holiday gifts all year as you have the money, and if you use a credit card buying gifts in advance, it will be paid off by the time the holidays roll around.

If you use a credit card, make sure to use the one with the lowest interest. And of course, make sure you make the payments on time.

This is also a good time to determine if there is any way your family can generate a little extra income to set aside for the holidays. Here are a few ideas to think about:

• Clean out your closet and put unused items on Facebook Marketplace, eBay, or Etsy. The market is hot for vintage and retro items these days. 
• Most retail stores hire seasonal employees during the holiday season, which would provide a few weeks of extra income.
• Take advantage of the recent surge in home-delivered meals via companies like Door Dash.
• Check out the need for Uber or Lyft drivers in your area.

Not only are you saving for the holidays, but you’re teaching your children about fiscal responsibility and sustainability. It could be their best life lesson ever.

These are just a few simple and manageable ideas for your holiday spending. There’s nothing earth-shattering here, but if you follow a few of these suggestions, the holidays will be happier and the New Year much more stress free.

Michelle Pompos, MSW, is the Director of Intake Services, Gold Star & Families of the Fallen Liaison at Hope For The Warriors. She’s also a certified financial social worker and military-trauma certified. Pompos graduated with a bachelor’s degree in social work and a minor in psychology from the University of North Carolina at Wilmington in 2012. After working as a hospital social worker for five years, she earned her master’s degree in social work and a military trauma certificate at East Carolina University in 2018. She is a military spouse and has volunteered with military family readiness programs, Navy Marine Corps Relief Society, and CREDO for more than 27 years. She’s married to Retired USMC Regimental Sgt. Maj. AJ Pompos. Their son is an active-duty Coast Guardsman stationed in North Carolina.