Key takeaways
- Set a total budget first, then divide it by person, including food, travel and decorations.
- Shop early with a list and compare prices to avoid last-minute markups.
- If you use credit, have a plan to pay it off before the bill is due.
The National Retail Federation expects holiday retail sales in November and December 2026 to reach about $1.013 trillion, up 4.2% from last year. Higher prices are part of that. The best defense is deciding what you’ll spend before the season starts.
1. Set one total number
Look at what you can afford from your current income and savings, not what you spent last year. Include everything:
- Gifts
- Holiday meals and hosting
- Travel
- Decorations
- Cards, wrapping and shipping
- Charitable giving
- Office parties and gift exchanges
2. Divide it up
Write a list of everyone you’re buying for and assign an amount to each person. Seeing the full list helps you make trade-offs before you’re in the store.
3. Shop with a plan
- Start early. Spreading purchases over several paychecks keeps any one month from blowing up.
- Track prices on big items so you know a good deal when you see one.
- Compare deals on Black Friday and Cyber Monday, but stick to your list. A discount on something you didn’t plan to buy isn’t savings.
- Check return policies and keep receipts.
4. Spend less without being stingy
- Suggest a family gift exchange, where each person buys one gift, instead of buying for everyone.
- Set a spending limit with friends and extended family.
- Give experiences or homemade gifts: a framed photo, baked goods, a coupon for babysitting.
- For kids, consider the “something they want, something they need, something to wear, something to read” approach.
5. Be careful with credit
- Credit cards: Fine if you’ll pay the balance in full when the bill comes. Otherwise, interest around 20% makes everything cost more.
- Store cards: Often charge even higher rates. Skip the “save 20% today” pitch at checkout unless you’ll pay in full.
- Buy now, pay later: Easy to stack across multiple stores. Read our BNPL guide before using it.
6. Plan for next year now
Divide this year’s total by 12 and start setting that amount aside each month in a separate holiday fund. Next November, the money will already be there.
WalletJolly may earn a commission from links on this page. Rates, prices and rules mentioned are current as of Oct. 28, 2026 and can change. This article is general information, not financial, tax, insurance or legal advice.
