We all know how easy it is to get carried away with holiday spending. We want to give our children, grandchildren, and other loved ones everything they want and deserve. Unfortunately, splurging on the holidays puts many of us in a not-so-jolly position once the bills start rolling in.
In fact, a NerdWallet survey found that 31% of 2024 holiday shoppers who used credit cards still haven’t paid off their balances. Despite this debt, a recent Gallup poll shows that American shoppers plan to spend on average of $1,007 on gifts this year. That doesn’t include other seasonal expenses, such as travel costs, food, and decorations.
This year, let’s set a resolution to start the new year with financial stability and peace of mind. Small, intentional changes in your spending approach can make a big difference. Here are the financial changes I suggest making for a less stressful holiday season:
- Start planning your budget early, and set realistic limits on ALL expenses. Take the time to think about and map out all of your anticipated expenses. You can use simple pen and paper, spreadsheets, or free online budgeting apps. Like Midwest BankCentre, your bank’s online banking platform may offer budgeting tools.
As you plan your budget, be sure to consider the following:
- How much did you spend last year? What can you learn from it?
- Will you and your family be traveling this holiday?
- Will you be hosting any events or entertaining guests?
- If you’re hosting or traveling, have any of these costs gone up with inflation this year?
- Will your wages stay consistent through the holidays, or will you be working fewer hours?
- Do you expect any changes to your personal property taxes that are due by December 31?
2. Track your spending meticulously. Many people aren’t aware of how much they spend until they get the credit card bill. Don’t be caught off guard. Record every purchase. Online and mobile banking tools can make this simple by tracking spending in real-time.
3. Look for retail sales. Prepare your list of gifts, then research where and when those items might be on sale. If an item is not at risk of selling out, wait and watch the price.
4. Consider using cash or debit instead of a credit card. The holidays is not the time to take on borrowed credit. Use savings that have been planned for and accumulated instead of going into high-interest credit card debt.
5. Set gift expectations with family members and communicate openly. Keep in mind who you’re buying for. Friends or family members may have a different socioeconomic status. Maybe instead of buying gifts for extended family, make a mutual agreement that only children will receive presents, or have a family gift exchange so each person only has to buy one.
6. Find meaningful “non-gift” gifts. As cliché as it sounds, it truly is the thought that counts. Instead of traditional gifts, find ways to spend time together. Host a holiday potluck dinner, volunteer together as a family, or make gifts instead of buying them.
7. Give the gift of savings. For your children or grandchildren, you can open an account with money deposited so they can grow their savings. Midwest BankCentre’s Youth Savings Account is a great option with an annual percentage yield of 5.01%* and no monthly fees.
8. Talk to your banker about what savings tools are available for next year. At Midwest BankCentre, we offer a Christmas Club savings account. After you open the account, you make regular deposits throughout the year. In October, the Bank sends you a check for the amount of funds you’ve saved, which you can then use toward holiday shopping.
To open a Youth Savings or Christmas Club account, call us at 314-631-5500.
As you’re budgeting and setting aside funds, I encourage you to bring your children into the discussion. Use it as an opportunity to teach them the importance of financial responsibility so that saving and planning become lifelong habits.
This year, vow to yourself that you won’t get swept up in the season and lose control of your spending. By taking these steps I’ve outlined, you’ll be ready to ring in the new year feeling financially empowered. A holiday season spent within your budget is one spent with peace, purpose, and the true joy of giving.
*Youth Savings is a tiered, interest-bearing savings account. The interest rate and corresponding annual percentage yield (APY) are tiered. If the daily balance in the account is $1000.00 or less, the interest rate paid on the entire balance will be 4.90% with an annual percentage yield of 5.01%. An interest rate of 0.10% will be paid only for that portion of your daily balance that is greater than $1000.00. The annual percentage yield for this tier will range from 5.01% to 0.10%, depending on the balance in the account. (APY calculations are based on a total deposit balance of $10,000.) Rate is effective as of 11/14/2025. $5.00 minimum opening deposit is required. Rates are variable and are subject to change at the bank’s discretion. Rates are calculated on a daily balance method. Limited to one Youth Savings account per child. At the age of seventeen (17), the account will be converted to a Statement Savings account and will be assessed a $3.00 service charge if the balance falls below $100.00 at any time during the statement cycle..
Originally published in the Labor Tribune’s November publication by Wes Burns, Executive Vice President of Community and Economic Development.