On some of the social media sites I follow, Christmas advertisements began appearing in mid-September. The first one triggered a familiar feeling of anxiety as I realized the holiday season would be here before we knew it.
Holiday retail sales in 2026 are projected to approach $1 trillion, according to Bain & Co. The typical American household is expected to spend about $900 on gifts, decorations and food this season, while Mastercard forecasts the strongest holiday retail sales growth in four years.
At the same time, The Penny Hoarder reports that 77% of Americans plan to adjust their holiday shopping habits in response to rising prices and inflation, and 35% say they feel less financially stable than they did a year ago.
Holiday spending projections vary, and every household’s situation is different. Some families will spend more, while others will spend less. Unfortunately, many consumers are still paying off debt from last year’s holiday season. That’s why one of the most important holiday spending rules is simple: Spend only what you can afford.
More than one-third of U.S. consumers took on holiday credit card debt in 2025, averaging approximately $1,223 per person, according to Capwolf.com.
With debt and everyday expenses continuing to strain household budgets, consumers should approach the season with a plan. Creating a budget, comparison shopping and taking advantage of sales can help stretch holiday dollars further.
So how can you enjoy the holidays without adding to your debt?
Review your finances
Determine how much you can realistically afford to spend this season without disrupting your other financial goals or obligations.
Create a holiday budget. Once you’ve established an overall spending limit, allocate specific amounts to major categories.
For example, you might budget $1,000 for gifts, $250 for charitable giving, $2,500 for travel, and $1,000 for entertainment. Be sure to include often-overlooked expenses such as holiday clothing, decorations, wrapping supplies, and shipping costs.
Track your spending
As holiday purchases add up, monitor your spending using a method that works for you. The key is consistency, not complexity.
Look for meaningful experiences that cost little or nothing. Baking cookies together, making homemade gifts, driving through neighborhoods to see holiday lights, spending a day in the snow or enjoying classic holiday movies as a family can create lasting memories without straining your budget.
The holidays are also a time to think beyond gifts and spending. Some of the most meaningful ways to celebrate the season cost very little and can make a lasting difference in someone else’s life.
Give your time
The holiday season can be especially difficult for older adults who may be experiencing loneliness. Consider spending time with residents at a senior living community or visiting an elderly neighbor.
You can also support a senior or neighbor with a disability by helping with tasks that may be challenging for them, such as changing a light bulb, shoveling snow, bringing in groceries, or mailing a package. Inviting family members to participate can make the experience even more meaningful and help children learn the value of serving others.
Local shelters often need extra help during the holidays, when more people seek food, warmth, and assistance. Many organizations welcome volunteers of all ages, making it a great opportunity for families to give back together. You might help prepare and serve meals, sort donations, organize supplies, or assist with facility cleanup.
Giving your time is one of the most meaningful gifts you can offer.
Write a letter
A handwritten note is a simple but meaningful way to brighten someone’s holiday season.
Consider sending a card to a veteran, a resident of a senior living community, a family member or a child spending the holidays in the hospital. For little more than the cost of a card and a postage stamp, you can share words of encouragement, gratitude, and hope.
In a world filled with text messages and emails, a handwritten letter feels especially personal. Your note may provide comfort to someone who is lonely, facing challenges, or unable to spend the holidays with loved ones.
Adopt a family for the holidays
Many local charities, schools, and faith-based organizations offer programs that connect donors with children and families in need during the holiday season.
Reach out to organizations in your community to learn about available opportunities.
Before participating, discuss a giving budget with your family and involve them in the selection and gift-giving process. It’s a meaningful way to help children understand that generosity can make the holidays brighter for others.
Thoughtful planning, a realistic budget, and a commitment to helping others can reduce much of the financial stress that often accompanies the holiday season.
When life gets busy, it’s easy to overlook those who may be spending the holidays alone or facing difficult circumstances. As you make your holiday plans, consider setting aside time and resources for acts of kindness that fit within your budget. A small gesture, whether it’s a gift, a meal, or simply spending time with someone, can have a lasting impact.
The true spirit of the holidays isn’t measured by how much you spend. It’s found in the memories you create, the time you share with loved ones, and the kindness you extend to others. By planning ahead and spending with intention, you can enjoy a meaningful holiday season while staying on solid financial footing.
When January arrives, you’ll be glad you celebrated in a way that honored both your values and your budget.
Teri Parker is a certified financial planner and vice president for the Riverside office of Captrust Financial Advisors. She has practiced financial planning and investment management since 2000. Contact her via email at Teri.parker@captrust.com.