Summary
This holiday budgeting guide offers practical tips to reduce financial stress and maximize joy. Learn how to create a realistic budget, open a dedicated savings account, and shop smart to avoid overspending. Discover strategies for handling unexpected expenses and explore creative gift alternatives. Start planning today for a happier, stress-free holiday season with these five tips.
Sure, we still have Halloween ahead of us, but let’s face it, the holidays are nearly here. Twinkling lights, festive gatherings and, of course, the gift-giving frenzy. But before you dive into shopping carts and travel plans, let’s talk about something that can make your season truly joyful (and significantly less stressful): a smart holiday budget.
1. Know Your Numbers
Holiday cheer shouldn’t come with a side of financial pain. According to accounting firm PWC, most Americans plan to spend about 5% less on gifts this season.* That’s a good reason why it’s essential to build a realistic budget to fit your gift-giving goals.
Here’s how:
- Subtract your monthly expenses from your net income
- Separate fixed costs (like rent and car payments) from flexible ones (like dining out or entertainment)
- Use a budget calculator to make it easier (Hint – take advantage of calculators at firstib.com
Looking back at last year’s spending can also help you set realistic expectations and avoid that dreaded January credit card bill shock.
2. Plan Ahead with Purpose
Want to make next holiday season even more relaxed? Open a dedicated holiday savings account. At First Internet Bank, our Free and Money Market savings accounts earn interest and are designed to help you reach your money goals without hassles.
Set a savings target, divide it by the number of paychecks until the holidays and automate your deposits. Whether it’s $5 or $50 per check, you’ll be surprised how quickly it adds up – and how much more relaxing your shopping trips become.
Pro tip: Add a little extra to cover decorations, dinners or those last-minute invites. Sharing expenses with friends and family? Remember, if you’re a First Internet Bank checking or savings account holder, you can take advantage of Zelle® to send or receive money in minutes**.
3. Shop Smart, Not Last-Minute
The earlier you plan your gift list, the better your chances of scoring deals. Keep an eye on seasonal sales like Black Friday and Cyber Monday. Shopping throughout the year can help you avoid the holiday rush – and overspending.
Track what you’ve bought and who it’s for. That way, Aunt Suzy gets one thoughtful gift, instead of three and Cousin Ralph doesn’t get left out.
4. Be Ready for the Unexpected
The season always seems to bring unanticipated events, too. Surprise party? Last-minute gift exchange? Keep a couple of versatile, budget-friendly gifts on hand, like candles, cozy socks or gourmet treats. Gift cards work too, but the personal touch goes a long way.
5. Have a Plan B
If your budget starts to feel tight, don’t panic. Cut back on impulse buys (maybe skip that second eggnog latte), rethink your gift list or explore creative alternatives like DIY gifts.
With a little planning, your holidays can be merry, bright and budget-friendly. Ready to start saving? Explore our smart banking solutions at firstib.com.
*Americans plan to spend less this holiday season, survey shows – CBS News, September 3, 2025
**To send or receive money with Zelle®, both parties must have an eligible U.S. checking or savings account. Transactions between enrolled users typically occur in minutes. Zelle® and the >Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.
