Expert tips to ease financial pressure and avoid holiday overspending

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This article was published 13/12/2025 (251 days ago), so information in it may no longer be current.

NEW YORK (AP) — Are you feeling overwhelmed by the pressure to spend money on gifts, parties, and travel this holiday season?

The job market is tough, student loan and credit card debt are rising, and prices for many items remain high due to inflation. If you’re feeling financially strained, know that you’re not the only one feeling that way, said Lindsay Bryan-Podvin, a financial therapist and host of the Mind Money Balance podcast.

To avoid putting additional pressure on your finances, use the the holidays as a time to be extra-mindful of how you spend. Remember that spending money isn’t the only way to show your love to your friends and family.

“We add on all of the years of nostalgia and pressure that we put on the holidays to meet some sort of picture-perfect version,” Bryan-Podvin said.

From setting a budget to creating your own traditions, here are expert recommendations to avoid financial stress this holiday season:

Start with a budget

What is marketed as “the most wonderful time of the year” can quickly become stressful, Jennifer Seitz, director of education at family finance app Greenlight, said. Setting a budget can help you avoid overspending on gifts, decorations, or any other holiday expenses.

“Be sure to include your travel, your shipping, your seasonal tipping, knowing what you plan to spend in each category and then having a cap in place can make it easier to avoid debt in January,” Seitz said.

While having a budget is the first step, sticking to it is equally essential.

Bryan-Podvin also recommended that you include your regular debt payments in your holiday budget. That way, you avoid falling behind or acquiring more debt.

Shop around for the best deals

When you’re doing your holiday gift shopping, look for sales, coupons or other holiday discounts so you can reduce your overall costs, said Trae Bodge, a shopping expert.

“I’m always looking for maybe a coupon code so I can save a certain percentage off, or I can earn cash back, or I can get a free shipping offer. I really believe in those tools and use them every single time I shop,” Bodge said.

Bodge also recommends you try finding deals with browser extensions such as PayPal Honey and Rakuten.

Decide what matters most to you

The holidays are the season of giving, but spending too much money and energy can have adverse effects on your mental health. Deciding what you care about most can help you avoid financial stress.

Bryan-Podvin recommends that you write down your holiday expenses: travel, celebrations, gifts, etc. Then ask yourself if buying or participating in all of those activities and costs feels good.

“That helps you prioritize what are the things that are most important to you this holiday season,” she said.

While many people equate how much they spend on gifts or how many events they attend with how much they care for their loved ones, that is not the best way to approach the holiday season if you’re financially strained.

Don’t be afraid to say no

Between work parties, family functions and gatherings with friends, the holiday season can quickly become overwhelming both emotionally and financially. If you’re feeling stressed, don’t be afraid to place a boundary and say no to an event or a gift exchange.

“Most people who you say a boundary to are going to understand and (some) are going to be relieved,” Bryan-Podvin said.

Being open about your money can be difficult, but sharing if you are struggling with debt or other financial issues can help family and friends understand that they should prioritize low-cost gifts or activities.

Create your own traditions

In recent years, Seitz has noticed a shift away from spending money on goods and more of a focus on creating meaningful experiences with family.

“I think it’s really important for families to create alternative forms of joy that aren’t necessarily tied to buying. Kids often remember those memories and those traditions, most of all,” Seitz said.

New ways of celebrating don’t have to include a greater expense, they can be as simple as organizing a pancake-making morning with the entire family, playing a new board game, or doing a homemade gift exchange.

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