Avoid Holiday Debt: Spend With Intention, Not Impulse

Holiday cheer has a way of loosening purse strings – sometimes more than we can afford. In 2024, one-third of Americans ended the year with holiday debt averaging $1,181. And 60% of them were stressed about it, according to a December 2024 Lending Tree survey.

Ironically, when Americans created their 2025 New Year resolutions, they listed saving more money (45%) and reducing debt (32%) as two of the top three, per a 2024 CFP Board study. Imagine the head start they could have had without that holiday debt.

Here are some practical tips to help you stay mindful of your spending this holiday season:

Build – and follow – a budget. Decide how much you can realistically afford without going into debt or disrupting your regular expenses. Write that number down and refer to it regularly – doing so makes you more accountable and turns your budget into a plan, not just a wish. To help you stay the course and avoid unpleasant surprises later, keep a written or digital log of your purchases and reconcile them with your budget regularly.

Start early. The earlier you begin shopping, the more time you have to compare prices, check out the myriad of sales and make thoughtful decisions. Last-minute purchases, on the other hand, can lead to panic buying, overspending and costly rush shipping fees.

Pay with cash or debit. Credit cards make it easy to overspend, especially if you don’t plan to pay the balance in full. Using cash or a debit card and paying for it now rather than deferring payment can help you stick to your budget and avoid buying things you can’t afford.

Make a list – and check it twice. Think about each person on your list and what they would value. Then write it down. If it already feels overwhelming, consider trimming your list to only close friends and immediate family. You might also shift your focus from material gifts to experiences – like a shared meal, a hike or a homemade coupon for help with chores. These often cost less and create lasting memories

Protect your long-term savings. Avoid dipping into retirement accounts or investments to fund holiday purchases. Depending on the account you tap, you could face penalties, fees and taxes – and you’ll be sacrificing potential future growth for short-term gratification.

Plan ahead for next year. If overspending is a recurring issue, start preparing now for 2026. Decide how much you want to spend and set up a holiday fund. Contributing monthly to an interest-bearing account can ease the burden next year – and even earn you a little extra.

The holidays should be joyful, not financially stressful. By planning ahead, spending intentionally and keeping your long-term goals in mind, you can enjoy the season without the burden of debt. A little discipline now can lead to a more peaceful start to the new year – and a healthier financial future.

This article was written by Edward Jones for use by Joe Oliver, your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC

Joe Oliver is a lifelong Oxfordian, husband, father, and financial advisor with Edward Joes Investments. Joe services business owners and individual investors by helping them accomplish their financial goals.  For a complimentary financial consultation, connect with Joe at Joe.Oliver@Edwardjones.com.

Joe Oliver, CFP®,AAMS™
Financial Advisor
2250 Baltimore Pike
Oxford, PA 19363
484-702-9311
www.edwardjones.com/joe-oliver

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