3 Smart Money Moves To Make Before The Holidays Hit Your Wallet

In just a few days, Mariah Carey will be defrosted and reminding us that “it’s timeeeeeeeee. And if you’re wondering, where does the time go? So are we.

And while yes, it is the most wonderful time of the year, it’s also the season when financial anxiety starts creeping in hard. Millions of Americans are already bracing themselves for a different kind of holiday spirit, and it’s one that comes with credit card statements. According to a recent survey by Intuit Credit Karma, nearly half (47%) of Americans feel stressed about affording the holidays this year, while 31% are already entering the holiday season carrying more than $5,000 in debt.

For Black families, who statistically face a median wealth gap that’s ten times lower than white families according to Federal Reserve data, the pressure to maintain traditions, support extended family networks, and create magical moments for children while managing financial realities can feel particularly acute in our community. Not to mention, this time of year puts extra expectations to create picture-perfect holiday moments while managing mounting expenses can feel overwhelming. But financial experts say there are practical strategies that can help you navigate the holidays without drowning in debt or stress.

Courtney Alev, consumer financial advocate at Credit Karma, offers guidance on how to approach holiday spending with intention and clarity.

Start Planning Now—And Get Specific With Your Numbers

“Start by setting a realistic budget early – look at your income, savings, and any existing debt to decide what you can comfortably spend,” Alev advises. “Then, plan your shopping ahead of time. Our data shows 38% of Americans started shopping earlier this year to spread out costs and avoid the last-minute rush, which can also help reduce impulse buying. So if you haven’t started your holiday shopping yet, do it now!”

The benefit of early planning extends beyond just spreading out costs. When you start now, you have nearly two months to shop strategically. That means you can take advantage of early Black Friday deals, compare prices across retailers, and avoid the markup that often comes with last-minute shopping. Break down your gift list by week, maybe you tackle three people per paycheck instead of trying to buy everything in one weekend.

Early planning also means you can set aside small amounts regularly. If you determine you need $600 for the holidays, that’s $150 per week for four weeks or $75 per paycheck if you’re paid bi-weekly. Those incremental amounts feel more manageable than watching a credit card balance balloon in a single month. You can also take advantage of layaway programs or buy-now-pay-later options that let you secure items now while spreading payments over time. Just make sure those payments fit your budget and don’t follow you into the new year.

Have Real Conversations—And Mean It

Money conversations can feel uncomfortable, especially during a season that’s supposed to be about generosity and abundance. But let’s be honest—no one wins when the family feuds (word to JAY Z) or when everyone’s secretly stressing about money. But Alev emphasizes the importance of transparency. “Be honest and communicate openly with friends and family about what is realistic this year because chances are, they’re feeling the crunch too,” she says. “Get creative with meaningful but lower-cost options like homemade gifts, shared experiences, or charitable donations. The thought should always mean more than the price tag.”

This approach can actually strengthen relationships and relieve pressure for everyone involved. Start the conversation early, maybe during Thanksgiving or even now. Suggest alternatives like drawing names for Secret Santa instead of buying for every single person in the family. Set a spending limit that works for everyone, whether that’s $25 or $50 per person.

Think about what really creates holiday magic. Often, the most memorable moments come from time spent together rather than expensive presents. Could you organize a cookie swap where everyone brings their specialty instead of buying expensive desserts? What about planning a family game night or movie marathon? These shared experiences create lasting memories and actually bring people closer together than rushing through gift exchanges.

Homemade gifts carry special meaning too. A jar of your famous candied yams recipe mix with instructions, a photo album of family memories, or a coupon book offering services like babysitting or home-cooked meals throughout the year show thoughtfulness and care. For children’s gifts, consider pooling resources with other family members for one bigger gift they really want instead of multiple smaller items.

Keep Your Eyes on the Prize—Because January Is Coming

“Keep your long term goals in mind,” Alev reminds us. “It’s better to have a thoughtful, affordable holiday than to start the new year stressed about what you spent or dealing with debt. The goal isn’t to spend the most, it’s to enjoy the season without carrying financial stress into the new year.”

Starting January under a mountain of credit card debt can derail your entire year. Those high interest rates mean you could be paying for this year’s holidays well into summer or beyond, affecting everything from your ability to handle emergencies to your long-term savings goals like buying a home or building an investment portfolio.

Before you make any purchase, ask yourself: Will this still matter in March? (Probably not) Will I remember it (again, likely not)—or just the stress of paying it off? Sometimes the answer is yes—but often, it helps put things in perspective.

Remember that you’re modeling financial behavior for the next generation. Kids remember stability and laughter way longer than they remember what was under the tree. Teaching them about budgeting, priorities, and finding joy in non-material experiences gives them tools they’ll use for life.

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