It seems like everyone in the St. Louis area is considering how to save money during the holidays. Whether it’s because of uncertainty over the economy, or because they overspent last year and are looking to avoid holiday debt. Holiday budgeting for gifts can be a difficult choice between frugality and showing people that you care about them. That’s why we put together these holiday budgeting tips to help you get through the season without a financial hangover.
It seems like everyone in the St. Louis area is considering how to save money during the holidays. Whether it’s because of uncertainty over the economy, or because they overspent last year and are looking to avoid holiday debt. Holiday budgeting for gifts can be a difficult choice between frugality and showing people that you care about them. That’s why we put together these holiday budgeting tips to help you get through the season without a financial hangover.
Deloitte’s 2025 Holiday Retail Survey is a real “bah humbug” this year, projecting the most negative outlook for this year’s shopping season in the survey’s 40-year history, with American shoppers planning to spend 10% less than they did last year. It reports that 77% of shoppers expect higher prices on holiday goods, while 57% expect the economy to weaken within the next six months. Respondents across all income groups told the survey they’re highly attuned to value, deals, and creating meaningful experiences.
Our credit union holiday tips include creating a budget, setting limits on spending, looking for ways to cut down on your holiday shopping costs, and planning for next year to reduce some of the financial stress.
Start with a Realistic Holiday Budget
Take a close look at what you spent last year, how well you did sticking to your budget, and whether you had enough in your bank account to cover it all. If you’re not sure what you spent, then looking at your checking account and credit card bills could give you a good idea. Remember that holiday expenses are about more than just presents. Your holiday spending plan may also include travel costs, food, decorations, beverages, and perhaps a few charitable donations.
You should also consider your budget for the rest of the year. If you don’t have a budget, it’s a good idea to create one. You could put together two lists for your regular monthly expenses. There are things you have to spend money on, such as your rent or mortgage, groceries, utilities, gasoline, vehicle maintenance, insurance, and any outstanding loans you’re paying off. Your other list would include things that you like to spend money on but could live without if you had to. This includes things like dining out at restaurants, having food delivered, jewelry, and expensive or designer clothes. It may also include one or more streaming services and subscriptions, such as a health club membership.
Set Spending Limits for Each Category
Starting with your regular monthly budget and taking a close look at your finances gives you an idea of how much you might spend over the holidays. You can also consider parts of your regular spending where you can cut back on to compensate for the extra spending you’re likely to do from Thanksgiving through the New Year.
Then take a look at your holiday budget, such as whatever traveling you’ll have to do, any parties you might throw or attend, and all the people you’ll be exchanging gifts with. Make up a shopping list and check it twice. It may include relatives, the people you work with, neighbors, and friends. Think about what you spent on each of them last year, what you might spend this year, and be as realistic as possible.
To reduce your spending and cut back on stress, you might trim your list a bit by agreeing not to exchange gifts with some of these people, especially if you’re not sure what to get them. If exchanging gifts with certain people, such as neighbors and coworkers, is creating stress, then you might consider agreeing not to exchange presents as a way for both of you to cut back. You could agree to just exchange holiday cards instead.
Another way of cutting back on spending is to make some homemade gifts, such as holiday cookies, fudge, or whatever else you have a knack for (just make sure to watch out for anyone’s diet restrictions or allergies). Holiday ornaments, centerpieces, and such are also good options. You might find some inspiring options from websites such as Pinterest or through an Internet search.
Track Your Purchases as You Go
A budget isn’t much use unless you actually keep track of your spending, to see how you’re doing and if you may need to cut back in other areas. We recommend updating your budget regularly throughout the year, and especially over the holidays. It can be easy to get caught up in the moment and spend a little too much when looking for that perfect gift for someone.
You could also be tempted to buy something on sale because it’s a bargain, even if it exceeds your budget. By checking and updating your budget continuously over the holidays, it can serve as a reminder to keep your spending and check and not get carried away. Whether you keep track of your budget with a pen and paper, an app on your phone, or your computer is up to you. What’s important is finding an approach that works for you and sticking with it.
Use Budgeting Apps or Credit Union Tools
There are plenty of budgeting apps for your phone out there. At Neighbors Credit Union, we offer a free online money management tool that you can use to track your accounts with multiple financial institutions (not just the ones you have with us). We make it easier for you to create budgets, set financial goals, track your progress, separate your spending into different categories, and look for trends in your spending habits. You can also use it to manage your debts and estimate how long it would take you to pay them off. Many of our customers find that this tool makes it easy for them to create a budget and motivates them to stick with it because it gives them full control over their finances and a sense of accomplishment for staying on course.
Avoid Common Overspending Traps
Whether you do most of your shopping online or in person, retailers have ways of encouraging you to spend. Online retailers may offer suggestions based on your purchase history or whatever it is you’re looking for, such as recommending items that might exceed your budget—and it’s so easy to just click your way into debt. With in-store shopping, merchants do all they can to create a festive atmosphere with music, decorations, free samples, and perhaps a visit from Santa. Anyone can get caught up in the moment and splurge on something because it seems like a perfect gift, or to take advantage of a “limited-time offer.”
Shop with a List and Compare Prices
By continuously monitoring your spending, you can remind yourself to avoid the temptation to splurge. That’s why creating a list, setting a budget, and keeping track are so important. Whether you shop in person or online, it’s also important to compare prices and do a little research ahead of time on what you intend to buy.
A shopping list can also come in handy when looking for sales events. Black Friday (Nov. 28), Small Business Saturday (Nov. 29), and Cyber Monday (Dec. 1) are becoming bigger each year, to the point where they’re almost holidays themselves. You could also look for sales and seasonal deals on websites such as Coupons.com and RetailMeNot.com. If you’re looking for retailers that offer frequent shopper rewards, Newsweek has a ranking of the best retailer loyalty programs.
Plan Ahead for Next Year’s Holidays
Despite budgeting and planning ahead, many people still wind up struggling to pay off their holiday debts and credit card bills. Take a moment to go over your holiday budget to see how well you managed. If you can’t pay off your credit card balance in full, take a look at your regular monthly budget and look for ways to cut back for a while so you don’t get stuck with high interest costs for too long.
Open a Dedicated Holiday Savings Account
This is also a time to plan for next year. Consider how much you spent over the holidays and use that as a guide to how much you might spend next year. Try dividing next year’s holiday budget by the number of months you have to save up for it. By setting that amount aside each month, you can reduce some of the stress associated with holiday spending. If you keep that money in a dedicated savings account, you can also earn interest on what you save. After all, wouldn’t you rather have your credit union pay YOU interest on your holiday fund rather than you having to pay interest on a credit card bill?
How Neighbors Credit Union Can Help You Stay on Track
At Neighbors Credit Union, we’re locally owned and operated with a focus on serving the St. Louis community and surrounding areas. If you have any questions about savings and budgeting or opening an account, please contact us online, call us at 314-892-5400, or stop by your local branch location.
