Planning Your Holiday Season Finances

Holiday season finances can cause a lot of stress at a time that should be about being happy and joyful. We have all done it, so don’t feel like you’re alone. There are a few things you can try. From limiting your spending to controlling impulses, here are a few purse-tightening ideas.

Holiday Season

Take Care of Legal Things

The holiday season is followed closely by tax season, maybe not by accident. Legal issues can be a severe drain on your finances and take a lot of your time. For example, running a home business means you need to pay taxes and register. But some people forget about these, and they can be complex. Accountants can handle the tax side of things. You can use a reliable EIN filing service to ensure your small business is legally registered, saving holiday troubles.

Limit Your Holiday Season Finances

Overspending is synonymous with the holidays, and Christmas can be a nightmare. Different age groups approach the holidays in different ways. And having young children adds to the expenses. Just last year, 86% of millennials admitted to spending more than they should have or could afford on gifts. Therefore, you must spend wisely as it is the most powerful way to save money, especially if you have debts, which is more than likely given the year we just had.

Use Credit Cards Wisely

Credit cards will add to your debt. However, they can be a lifeline when you need the money. What would be a large purchase you cannot afford right now becomes a series of smaller payments. This can be an excellent way to offset the costs of the holidays. Of course, try not to go near your card limit, and only use your credit card if you can afford the repayments. Additionally, some credit cards, like Amex, offer reward schemes during the holiday periods.

Holiday Season

Find Ways to Reduce Anxiety

Worrying about money is one of the leading causes of stress and anxiety, especially over the holidays. But there are some ways to overcome this. Here are some you might find useful:

  • Have family fun with low-cost holiday gifts or celebration ideas.
  • Learn to say no when you are near your limit to avoid holiday stress.
  • Make spending rules within realistic limits of what you can afford.
  • Make lists and always stick to them, no matter what.
  • Take advantage of cashback schemes in-store and with apps.
  • Try to stay aware of your emotions when shopping to avoid anxiety.
  • Take some time for yourself and look after number one.

You aren’t alone if you worry about money over Christmas. Yet with some cost-cutting, budgets and lists, and making sure you don’t forget about yourself, you can enjoy it as much as others.

Stay Aware of Buy Now, Pay Later

Credit cards offer a good way to manage finances and break up costs. But there is another popular method that more and more people are using, and that’s buy now, pay later schemes. Services like Klarna and, more recently, PayPal offer “Pay-in-3” schemes to break up the cost of larger purchases, like a video game console, for example. Of course, this is tempting and is a good deal. But you must make sure you can afford the terms, or it will affect your credit score.

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Control Impulses for Better Holiday Season Finances

It might be shocking to know that up to 80% of purchases are made on impulse. For some, it can be a nightmare. For others, it is a whimsical amusement they do now and then. But at Christmas, stores use very clever tactics to force you into impulse buying. For instance, they place popular items at eye level, place holiday treats near the checkouts, and offer deals that aren’t really saving you money. Try to stay mindful of these when shopping to avoid impulses.

Shop at Local Businesses

Local businesses can suffer over the holidays as we all clamor to get what we need in one place at one time. But you can support local businesses and maybe save some money by changing your shopping habits. This helps support the community and could also be considered a good deed for the day. Yet there are also additional benefits to using local stores. For example, some credit card companies, such as America Express, offer rewards when you shop locally.

Holiday Season


Getting legal things out of the way, like taxes, will help with your holiday season finances this year. Reduced anxiety with methods like lists and budgeting will also help. You can also support local businesses for lower costs and less traffic, and even earn some credit card rewards too.


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