If you're anxious about spending this holiday season, you're not alone. Money can be an emotional topic, and this time of year can bring up unique challenges. Prepare a plan to help you keep the season joyful and avoid the post-spending hangover with these five tips.
1. Start with a seasonal intention
Before you dive into your holiday spending, take a minute to set strong priorities. Start by identifying your personal values, so you can align all your spending decisions back to those. For instance, experiences and giving back are important to me, so I find ways to give back to my community or make ample time for family during the holiday season.
Read more: Ally Bank’s smart savings tools can help reduce the stress of financial planning.
Taking time to understand your values will also help build a spending plan that’s right for you. Which holiday spending categories align with your values? Allocate how much you want to go toward spending on gifts, parties or holiday outings. By thinking through your seasonal priorities, you can avoid getting caught up in the moment once you're in the throes of the holiday spirit.
2. Don’t neglect your own wellbeing
Tuning in to your emotions around holiday spending can help you not only make informed spending decisions, but also care for yourself during the season. How do you feel when you think about the holidays? Calm, confident, frustrated, anxious? If you’re feeling overwhelmed by the pressure to find the perfect gift or to create special memories for your kids, take a moment to tend to your wellbeing and reset. Try a grounding exercise and come back to your values as you work through different decisions.
If you’re worried about achieving a picture-perfect season, remember that the people in your life are more likely to recall how the holidays made them feel rather than any particular item.
3. Ease off social media
We all love scrolling through Instagram and TikTok, but your feed can set some unrealistic standards — no matter the season. During the holidays, these pressures and anxieties can multiply since there’s the constant danger of comparing your holiday plans to what everyone else is posting. Not to mention ads and influencers promoting can't-miss deals and must-have gifts. You don't have to go cold turkey from social media, but be mindful of how much time you spend on these platforms. Consider putting down the phone and integrating a mindful practice like walking, yoga or meditation into your routine instead.
4. Don’t be afraid to create new traditions
What holiday traditions does your family carry from one year to the next? While traditions can be fun, they can also build pressure to keep the practice going, regardless of whether they fit into your evolving lifestyle. Think about your traditions in the context of the values you’ve identified for yourself — are they in alignment? Just because you’ve always bought lots of gifts for each of your loved ones, doesn’t mean you always have to. Take some of the pressure off by creating a new tradition, one that’s better in line with what you value in the holiday season. With my family, I set a limit on how many gifts I give. My kids usually receive a limited number of presents, and I try to make at least one an experience. Get creative and find what resonates with your kids, family and friends. After all, it really is the thought that counts.
We are wired to prioritize immediate satisfaction over longer-term rewards — it's a phenomenon called hyperbolic discounting.
5. Take the future you into account
We are wired to prioritize immediate satisfaction over longer-term rewards — it's a phenomenon called hyperbolic discounting. During the most wonderful time of the year, it can be easy to get caught up in the moment and overestimate the value of a discount. But jumping on deals can lead to unnecessary overspending — and no one wants to deal with holiday debt. Look ahead to the new year and visualize your future self to stay motivated and hold yourself accountable. And remember to give yourself grace. If you do exceed your budget, you have the opportunity to recover.
Keep things merry and bright
The end of the year is full of festive moments and a fair share of stressful situations. Do what you can to dial down your anxieties this season by focusing on your holiday intentions and your financial goals for December and beyond.
