featured
2025-11-17
Personal Finance
published
How to Plan for a Stress-Free Holiday Season | Budgeting, Saving, and Rewards
2017-04-24
- Set a realistic holiday budget by tracking income, expenses, and savings.
- Watch non-essential spending and start holiday shopping early.
- Earn perks and rewards to save more during the holidays.
- Keep your gift spending under control with price limits per person.
- Have a backup plan for unexpected expenses.
The holidays are upon us, and you’ve no doubt started planning for a joyous season. But the more memorable a holiday you plan to have, the more anxiety and regret you can feel as the holiday expenses add up and put a dent in your savings.
That’s why we’re laying out a plan with holiday shopping tips to help you budget, save, and experience the joy of the holidays with none of the financial stress:
- Setting a holiday budget
- Saving on holiday purchases with cashback rewards
- Having a backup plan for unexpected expenses
How to Set a Holiday Budget
You might already have a monthly budget, but if you don’t, you won’t find a better time to create one than right now.
Step 1: Document your income and expenses.
In a spreadsheet, document, or the budgeting tool of your choice, enter the following:
- Total monthly income after taxes, using your paystubs or statements for the month.
- Total monthly expenses, using your receipts or charges for the month.
- Group these into categories like groceries, home, auto, streaming services, etc.
- Put any recurring contributions to savings or investment accounts here.
- Divide annual bills or fees like property tax by 12.
- Any savings you’re prepared to spend during the holidays.
- Divide this by the number of months you take to shop for the holidays.
- Example: if you start shopping in October, divide by three.
- Once divided, add it to your monthly income.
- Divide this by the number of months you take to shop for the holidays.
Our financial education resource, Zogo, has an easy-to-use template for this:
Step 2: Calculate your monthly holiday budget.
- Add your income to your available savings for the month.
- Subtract your monthly expenses from this total.
- The remaining amount is your holiday budget for the month.
Step 3: Identify savings opportunities.
Look for expenses you can pause or reduce at least temporarily:
- That gym membership you haven’t used for a while (there’s always next year)
- Streaming service subscriptions
- Impulse purchases
- Dining out or food delivery
- Any other non-essential purchases
Once you’ve decided what you can live without for at least the holiday season, subtract that from your expenses and review your updated budget.
Step 4: Adjust your total budget based on how early you start shopping.
The earlier you start shopping, the better.
- Make a copy of your monthly budget sheet for however many months you have
- Example: If you start in October, make ones for October, November, and December.
- Example: If you start in October, make ones for October, November, and December.
- Don’t forget to divide the savings you plan to spend across these three months.
Tip: Are you paying off a loan? See if your lender is offering any Skip-A-Payment opportunities for the holidays and apply.
You can apply to skip a payment on your qualifying loans from Texas Bay.
If your Skip-A-Payment application is accepted, eliminate the payment amount from your budget for that month.
If you’ve added as much as you can to your budget, then it’s time to use it (wisely).
How to Stick to Your Holiday Budget
Split your holiday expenses into two categories: non-gift purchases and gift purchases.
Start by deciding what you want to spend each month on non-gift holiday shopping:
- Decorations and gift-wrapping supplies
- Upcoming travel or holiday entertainment, if not already booked
- Anticipated cost of food and drinks if you plan to host a meal or get-together
- Any other expected holiday purchases, excluding gifts
Subtract these from your budget, but feel free to adjust as needed while you prepare to buy gifts. If you’re doing this in November or earlier, you’ll have multiple monthly budgets between which you can spread these purchases. What’s left is your gift budget.
Make a list of everyone you plan to buy gifts for. Again, if you’re doing this in November or earlier, consider how you’d spread these purchases across multiple months in your budget. With that in mind, set a price limit for each person and stick to it when you shop.
Now that you have a plan to protect your wallet this season, let’s talk about ways you can go on the offense and come out on top at the end of the year.
How to Save More During the Holidays with Rewards
Consider these tools to earn cash-saving rewards and perks while you do your holiday shopping:
- Perks checking accounts
- Rewards credit cards
- Cashback apps
More For Your Money: Perks Checking Accounts
Standard checking accounts are great for storing and tracking your money, but a Perks checking account can do a whole lot more for you. By choosing the right Perks checking account, you unlock countless new ways to save on your holiday purchases:
- Savings on your holiday purchases and travel plans
- Fuel discounts while you run your errands
- Cell phone protection if you pay your monthly bill with Perks checking
- Roadside assistance for your family road trip
- Protection and warranty for damaged or stolen gifts
The right perks checking can give you all the above and more without minimum balance requirements or interest.
Learn about Texas Bay Perks Checking and what it can do for your finances.
Extra Cashback: Rewards Credit Cards
Your number one priority is sticking to your budget, and that’s especially true when considering using a credit card.
However, if you stay within your budget, pay in full every month, and keep track of your purchases, the right rewards credit card can save you a bundle:
- Cashback on your gift purchases
- Redeemable gift cards, travel, and more
- Double cashback during the holiday season
If you’re interested in a credit card that has double cashback and a low introductory rate during the holidays, Texas Bay Platinum Rewards Mastercard® offers that and more with no annual fee.
Learn how a Texas Bay Platinum Rewards Mastercard® helps members save on their holiday purchases.
Not interested in opening a new account just yet? We recommend cashback apps.
How To Stretch Your Dollar with Cashback Apps
Cashback apps save you money on your purchases and are free to use. Like any financial resource, however, they come with their share of fraud risks. Carefully research them and use caution before accepting any offers.
Here’s what you should pay attention to when choosing a cashback app:
- Reputation: Check ratings on sites like Better Business Bureau as well as reviews on the App Store and Google Play.
- Security: Make sure the app you choose protects your data with measures like encryption or two-factor authentication.
- Transparency: Learn how the app works, what personal information it collects, and whether it is truly free to use.
- Specialization: Some apps are recommended for groceries, while others are better for online shopping. Choose the app that best fits your spending habits.
- Rewards: Find out how rewards are earned on each app. Some require you to scan your receipts, while others require you to access the app before you shop.
- Payments: Make sure the app you choose pays users reliably and has a reasonable minimum payout amount.
- Customer Service: You’ll want reliable support if you ever run into any issues redeeming rewards.
Taking A Personal Loan
Whether it’s medical expenses, emergency travel, or unplanned home or auto repairs, an unexpected expense can derail your holiday season.
If you ever need to cover these costs without skipping the holidays or draining your savings, a low-interest personal loan can help you enjoy the season with peace of mind.
Learn about personal loans from Texas Bay Credit Union.
Now that you’re prepared to take on the holidays, we hope you and yours enjoy a happy, memorable, and stress-free season.
FAQ: Holiday Budgeting and Saving
How can I plan holiday travel without overspending?
Book early, set up airfare alerts, and travel on off-peak days. Consider flexible airports or driving for shorter distances and use credit card points or rewards to offset costs.
How early should I start saving for the holidays?
As early as you can! Some financial institutions offer Christmas Club accounts, where you can begin contributing savings via direct deposit as early as January.
Learn about Christmas Club accounts offered by Texas Bay Credit Union.
What are some low-cost gift ideas that still feel meaningful?
Personalized gifts, such as handwritten letters, framed photos, homemade treats, or experience-based gifts like movie nights or volunteering together, can be just as heartfelt as expensive purchases.
How can I manage holiday expenses if I’m paid biweekly or irregularly?
Base your holiday budget on your lowest expected income month. Allocate part of each paycheck toward a “holiday sinking fund” and use automatic transfers to stay consistent, even when your pay varies.
How can I avoid financial stress when hosting holiday gatherings?
Plan menus around affordable, shared dishes and consider potluck-style meals. Use digital invitations to track RSVPs and avoid overbuying. Focus on time together rather than expensive extras.
What should I do if I go over budget during the holidays?
Pause discretionary spending for January, redirect any leftover gift cards to cover essentials, and review what caused the overspend. Adjust next year’s plan early to avoid repeating it.
How can I protect myself from identity theft during holiday shopping?
Shop only on secure websites (look for “https”), avoid public Wi-Fi for purchases, and monitor your accounts regularly. Using a credit card rather than a debit card can add an extra layer of protection.