Start Your Holiday Spending Plan Before the Holidays Start

Key Takeaways

• Beginning holiday planning early can reduce last-minute financial pressure.
• Gifts are only one part of holiday spending.
• Saving a small amount regularly can make seasonal expenses easier to absorb.
• Setting expectations early can help prevent overspending.

Main Article

The holidays may still feel far away, but September is a useful time to begin thinking about what the season will cost. Waiting until November or December to consider gifts, travel and entertaining can leave you trying to cover several large expenses at once.

Start by making a broad list of what you expect to spend money on. Gifts may be the obvious category, but remember travel, meals, decorations, charitable giving, school events, shipping and entertainment. Use last year’s experience as a guide and decide which traditions or expenses are most important to you this year.

Once you have a rough total in mind, divide it by the number of paychecks remaining before you expect to spend the money. Setting aside manageable amounts now can be easier than absorbing the entire cost later. If you keep money designated for upcoming expenses in savings, make sure you understand any balance requirements, fees or withdrawal rules associated with the account you choose. NASA Federal currently offers several savings and money market options for members with different balance requirements. (NASA Federal Credit Union⁠)

Early planning can also make it easier to set expectations with family and friends. Agreeing on gift limits, simplifying traditions or making travel decisions in advance can remove some of the pressure to spend simply because the holidays have arrived. The goal isn’t to spend less at all costs—it’s to decide ahead of time what fits comfortably into your finances.