Financial tips to save money, stay happy during the holiday season

The holiday season is often seen as a time of celebration, focused on connecting with family and friends, gift-giving and festive activities. It can bring joy and warmth, with home decorations, special meals and community events. However, it can also come with added stress, with the pressure of managing finances while picking the perfect presents for those on your list.

Andrew Zumwalt is the chair of the University of Missouri’s personal financial planning program in the College of Agriculture, Food and Natural Resources. Here is his advice to help you navigate your finances this holiday season.

How can I prioritize spending on gifts, travel and holiday activities to maximize joy without overspending?

Create a spending plan and stick to it, adjusting as needed. Consider what the recipient would truly appreciate—whether it’s an item, quality time or cash. Focus on understanding the person’s wants and needs. Try to avoid giving gifts that may feel like a burden if they don’t match the recipient’s preferences.

What tools or apps do you recommend for tracking holiday expenses in real-time?

Tracking expenses involves recordkeeping. Whether you carry around a small notebook and pen to record expenses, use an online note-taking app on your phone or fill an envelope with cash to limit your spending, just keeping track is key. Don’t overthink the process so much that you avoid doing it.

What strategies can I use to take advantage of sales and promotions without falling into impulse buying?

To make the most of sales, compare prices across several stores instead of relying on just one. Clothing discounts often use inflated “original” prices to make markdowns seem better than they are. By comparing prices, you can find the best deal with available incentives. Avoid impulse buys. Clearance or off-season items—summer clothing in December—often offer the best value. Taking a moment to step back and pause before purchasing can provide some needed clarity.

Is it better to use cash, debit or credit for holiday spending? How can I avoid accumulating debt during the season?

In general, consumers will spend more when using credit or debit versus cash. However, it’s easy to overspend with any payment method. The key is keeping track and being honest with yourself about the limits you set. If that is difficult for you, consider purposefully limiting yourself or looping in someone who can help you stick to the limits.

What are some creative ways to save money on holiday traditions such as hosting parties or decorating?

Balance your plans with the needs of your loved ones. If you spend all your time in the kitchen, you’ll miss out on enjoying the holiday together—unless they join you there. Focus on creating lasting traditions, like decorating together or volunteering as a group. Ask younger family members about traditions they’d like to start for even more memorable moments that don’t cost a lot.

How can I plan holiday spending now to avoid starting the new year with financial stress?

Find a picture of yourself from last spring, print it out, write “future self” on the top of the picture and place it on your bathroom mirror or refrigerator, or in your purse or wallet. When considering a purchase that may bust the budget, look at the picture of your “future self” and think about how you are going to feel in January because you may have overspent during the holidays.

How can I prepare for financial goals during the holidays? Should I start a holiday savings fund for next year, and how do I begin?

Don’t split your focus between the future and surviving the holidays. Instead, set a date in January to reflect on your spending, gifting and what you’d do differently next year. Set a calendar reminder for the following October, and for now, focus on getting through the holiday season.