The holiday season can bring plenty to look forward to—and added financial pressure. When groceries, gas, and other everyday expenses already take up more of your budget, gifts, travel, and seasonal activities add up quickly.
A simple plan can help you enjoy the season, focus on what matters, and start the new year with fewer financial surprises.
Set a Budget That Still Works in January
Decide how much you can safely spend without postponing bills or taking on debt you can’t comfortably repay. Try the January test: if all your holiday purchases appeared on one January statement, could you pay it while still covering your essential expenses?
As First Mid Bank & Trust Chief Retail Banking Officer Stas Wolak explains, “Before the first gift is purchased, inflation has already taken a seat at the holiday table. The biggest financial surprise during the holidays is often not what people buy for others—it’s all the additional expenses that come with celebrating. None of these expenses look overwhelming by themselves. Together, they can turn December into the most expensive month of the year and make January feel about three months long.”
You might already have some money saved for the holidays, or you may want to set aside a portion from your remaining paychecks. Divide the amount you still need by the number of paychecks left. If that number feels too high, scale back the plan now rather than relying on credit later.
Start with a monthly budgeting tool and the First Mid Holiday Shopping Tracker. Use the tracker to plan holiday purchases, then add that month’s planned holiday spending as “Other Expenses” in the budgeting tool to stay on track. Record purchases as you go so an early start doesn’t turn into extra spending. Wolak also recommends tracking small purchases, such as coffee, because easy-to-overlook expenses can add up quickly.
Simplify the Gift List
When money is tight, reducing the number of purchases may help more than trimming a few dollars from every gift. Consider drawing names, giving one gift per household, or agreeing that adults will buy only for children.
A white elephant exchange is another way to limit purchases, and regifting can be part of the fun. Let everyone know that useful, funny, or unopened items from home are welcome, then agree on a spending limit. This could be a fun family tradition, and the more creative, the more laughs.
Set expectations before shopping begins. A shared plan helps ease the pressure and keeps holiday spending manageable. Just remember, giving should be fun.
Give Something Meaningful
Some of the most memorable gifts don’t have to be expensive—or come in a box.
This year, 64% of consumers say they are drawn to nostalgic, screen-free gifts. Among Gen Z consumers, 81% are prioritizing offline activities, and 63% say a shared meal matters more than a physical present*.
Turn a favorite family recipe, game night, or holiday activity into the gift. Pair a handwritten recipe with a few ingredients and plan a day to cook together. Organize a cookie exchange, visit neighborhood light displays, or hold a family movie or board game night.
Choose a low-cost, shared tradition. Instead of another gift exchange or expensive activity, plan a memory. Homemade gifts or experiences can turn your time and creativity into something even more meaningful.
Check the Real Price Behind the Sale
A “50% off” label doesn’t always mean you’re saving 50%. Compare the sale price with what other retailers charge for the same item—not just the manufacturer’s suggested retail price (MSRP). A large discount may only look impressive because the original price was inflated. Also, consider the full price at checkout, including taxes and shipping.
If you don’t recognize the seller, check its reputation and return policy before buying, and learn how to tell whether a deal is legitimate. During the busy holiday shopping season, stay especially alert for fake stores and offers that seem too good to be true.
Ask yourself: Would I still buy this at today’s price if there were no sale? If the answer is no, the discount may be driving the decision more than the gift itself.
Or, pause before you buy. Sara Porter, Director of Digital Strategy at First Mid shares, "Researching a deal also gives me time to pause and decide whether I really want to make the purchase.”
Budget for the Whole Season
Review last year’s expenses to spot costs you may have forgotten, but use them as a guide—not a spending target. Consider what has changed this year and what you can safely afford now.
Food and travel are top spending categories most affected by inflation. Wolak suggests planning menus around weekly specials, purchasing shelf-stable ingredients early, estimating fuel costs based on mileage, and comparing the total cost of driving and flying.
Also account for food and get-togethers, decorations, clothing, shipping, wrapping supplies, donations, tips and seasonal activities. If your budget allows, include a small cushion for expenses that are easy to overlook.
As Wolak explains, “The goal is not to eliminate generosity or fun; it’s to spend with enough purpose that the season does not compete with rent, groceries, or savings goals.”
Count it now, even if you pay later. If you use a buy now, pay later plan (BNPL), subtract the full purchase price from your holiday budget and track each due date so you don't forget.
Plan Now to Spread Cheer—And Your Budget
Putting a little time into your holiday plan now can save money and reduce stress later. When you know your budget, priorities, and gift list, it’s easier to avoid last-minute decisions that could cost you more.
Thoughtful planning can help you enjoy the season without carrying its cost far into the new year. Digital tools can make it easier to follow your budget and stay aware of your spending along the way.
Stay on track on the go. Download the First Mid mobile app to access financial planning tools and learn how card alerts and spending limits can help you monitor your card with everyday convenience.