Want to ensure your family enjoys a memorable holiday season? Here’s how to celebrate without straining your wallet.

If you're like many, 2021 is finally starting to feel somewhat normal with November here. While masks are still part of our lives, more people are venturing out, and the hustle and bustle of pre-pandemic life is returning. Airports are busy, vacation plans are being made, and securing a dinner reservation is once again a challenge (especially in LA!).

As the festive season approaches, there's a natural urge to indulge after a long period of restrictions. This desire can lead to overspending, creating unnecessary financial strain. I refer to this as the “holiday slide” — it begins with lavish feasts and culminates in gift-filled celebrations, whether for Christmas, Hanukkah, or New Year’s. Emotions run high during this time, and many overspend to fill feelings of loneliness or inadequacy. We’ve all experienced this. The key is managing these feelings and improving our financial situation this holiday season.

To help my clients enter the new year feeling financially secure, I encourage them to carefully consider their holiday budgets and plan their shopping wisely. Here are some tips that my team and I believe can assist you in staying aligned with your financial goals while enjoying the festivities.

Create a list of your family values

Reflect on whether your gift-giving aligns with these values. Keep these principles in mind while shopping to ensure you purchase only meaningful gifts.

Compile a list of recipients for gifts

Take a moment to consider why you're giving a gift to each person and its significance. Set a budget for each recipient and keep these figures handy while shopping.

Think creatively about gifts

Consider offering your skills — cooking a meal or organizing a closet, for example. Your time and talents can be as appreciated as any physical gift.

Establish a holiday budget

Include costs for decorations, meals, travel, holiday cards, and postage. Instead of pricey cards, consider digital options or sharing greetings on social media. Your total holiday budget should ideally not exceed 1.5% of your annual income. If you're hosting festive meals, plan your menu ahead and look for deals or buy in bulk at stores like Costco.

Utilize online resources for price comparisons

Finding the best prices for your planned purchases is easier than ever. Online shopping is not only convenient but often more cost-effective.

Assess your payment methods

If you intend to put all purchases on a credit card that you can't pay off fully, it's time to reconsider your spending. If using credit is unavoidable, seek a card with low or no interest for an introductory period and have a repayment plan to avoid overspending.

Maintain a gratitude journal

This practice is beneficial throughout the year, but especially during the holidays when feelings of comparison can overwhelm.

It's been a challenging couple of years for many — the uncertainty has led some to think, ‘I’ll spend freely this year.’ However, overindulging to compensate for lost experiences can lead to regret when the bills come in January. This cycle of overspending can be hard to break. Remember how little was needed to get by during the pandemic; it was a time for reassessing priorities and distinguishing between wants and needs.

These tips can help you stay grounded and focused. Mindful practices, along with a holiday budget, can ensure you concentrate on what truly matters. Remember, caring for yourself during the holidays is essential. If finances are tight this year, your loved ones will understand. It’s perfectly fine to find thoughtful, affordable, or even free ways to show you care.