The holiday season is one of joy, connection, and giving, but it can also be a time of financial stress. Between travel plans, gifts, and festive gatherings, many families find themselves overspending in December and facing a financial “hangover” in January. By putting a plan in place now, you can celebrate generously without compromising your broader financial goals. 

• Set a Realistic Budget Early: Start by identifying your total holiday spending limit—then work backward to allocate funds for gifts, travel, entertaining, and other expenses. According to the National Retail Federation (NRF), the average U.S. consumer is expected to spend around $890 on holiday-related purchases in 2025, following 2024’s record-spend year of $901.99.¹ To stay on track, review your monthly cash flow and determine how much you can afford to set aside weekly through year-end. Treat holiday spending like any other financial goal—planned, tracked, and aligned with your priorities. 

• Spend Smart and Save Strategically: Even small changes can make a big difference. Consider shopping earlier to avoid last-minute splurges and take advantage of pre-holiday promotions. Tools like browser-based coupon apps or cashback programs can also stretch your dollar, and using a separate account or “holiday fund” to can help keep spending organized and visible. Setting realistic limits with family, such as gift exchanges or experience-based giving, can reduce pressure and shift the focus back to meaning rather than material. 

• Plan for Travel and Hidden Costs: Holiday travel can quickly add up, particularly with higher fuel prices and airfare during peak times. To save, consider flexible travel dates, book flights early, and use credit card rewards points strategically. Holiday airfares often rise as travel dates approach. Researchers and travel analysts typically find the cheapest domestic fares several weeks before major holidays, so booking early or using rewards can help lock in better prices.^2,3 Remember to factor in hidden costs like wrapping supplies, shipping fees, and holiday décor—small items that often inflate overall spending. 

With mindful preparation, the holidays can be both joyful and financially sound. The key is intentionality—budget early, spend consciously, and plan for the details. Your Wedbush financial advisor can help you integrate holiday spending into your broader financial plan, so your celebrations align with your long-term goals.  

Sources: 

[1] https://nrf.com/media-center/press-releases/consumers-to-spend-second-highest-amount-on-record-according-to-nrf-holiday-survey 

[2] https://transtats.bts.gov/AIRFARES/ 

[3] https://www.washingtonpost.com/travel/tips/how-to-find-cheap-holiday-flights 

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