Gift-giving gives good vibes…until the bills arrive.

The holidays are here! So is seasonal merriment and shopping for the ones we love. If you've ever found yourself dreading your January credit card statements, you’re not alone. With a little planning, you can hold on to the holiday spirit without the holiday debt. 

Start with a budget (and stick to it!) 

Crafting a holiday budget can be fun and liberating. It allows you to shop confidently, knowing you’ve set healthy spending boundaries. Make a list of everyone you’d like to buy a gift for, then set a spending limit per person. Don’t forget to include the cost of “extras” like decorations, meals and travel expenses. 

As a rule, it’s wise to spend no more than 1.5 percent of your annual income on holiday expenses. For example, if you make $50,000 a year, try to keep holiday spending under $750. Make adjustments based on what’s realistic. Having a target can be incredibly helpful in preventing stress now and in the future. (Need help? Contact us! Our financial coaching is FREE.)

Use credit wisely

Credit cards make it easy to overspend, especially given retailers’ enticing promotions, and if used wisely, buying presents can be an excellent way to build credit and earn points. Greylock’s Explore card can help you with this year’s holiday points promotion from November 1-December 31, 2025. A spending budget is still key, but if that’s a challenge, consider skipping the card and opting for cash or debit.

Don’t get caught up in “Buy Now, Pay Later”

“Buy now, pay later” (BNPL) options are everywhere, offering small, interest-free installment plans that seem harmless, but can add up. More than 41 percent of buyers using BNPL have missed a payment in the last year, according to Lending Tree. That’s four out of 10 shoppers. If you’re tempted, ask yourself this question: If I had the cash right now, would I buy this item? If the answer is no, it’s probably best to skip it.  

Get creative with gifting 

Homemade or personalized gifts often mean more to loved ones. Put together a “Movie Night” gift basket, offer a free evening of babysitting, plan a special experience, or create a photo album of family photos. These ideas cost less while allowing you to give something heartfelt. Celebrating with family or friends? Opt for a Secret Santa or themed gift exchange so everyone buys just one gift. 

Plan for next year 

It’s never too early to start planning for next year’s shopping. Small amounts, like $20 or $30 a month, can add up by the time next year’s holiday season rolls around.

Greylock can jumpstart your savings with the Holiday Club. Deposit as little as $15, then save throughout the year. The money becomes available in October for use during the holiday season.

No matter how you choose to save, when it comes time to buy presents, you’ll have funds ready to kick off the festivities.

Bottom line: keep it simple and savor the season 

Remember that the holidays are about spending time with loved ones, not spending money. Spending is inevitable, but it doesn’t have to diminish your cheer.

Greylock is here for you and your financial wellbeing. Connect with a Greylock Financial Coach for tips, strategies and resources to support your financial goals all year long. For additional information and assistance, check out the recommendations below.

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Originally published December 05, 2024

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