The holidays are fun, but they can quietly drain your bank account.
PwC's Holiday Outlook 2026 found that Americans expect to spend an average of $708 on gifts this year, down slightly from $721 last year.
Households with children plan to spend more ($875) than those without ($635).
Gifts are only part of the bill, since travel, parties and decorations add up too.
Here are nine practical ways to keep your spending in check.
1. Set a spending limit and stick to it
Decide how much you can afford in each category, such as $30 per gift or $300 for travel.
Casey Brueske of PenAir Credit Union suggests listing everyone you're buying for, plus gatherings and travel.
Don't forget the small extras:
- Decorations
- Holiday cards
- Last-minute stocking stuffers
2. Build a sinking fund
A sinking fund is a savings pot for a planned expense that doesn't fit your monthly budget.
Setting aside a little each payday spreads the cost out, so you aren't scrambling in December or reaching for a credit card.
Parking the money in a high-yield savings account can help it grow.
Yahoo Finance reports that some of the best accounts currently pay over 4% APY, but rates change, so compare before you open one.
3. Look into holiday savings accounts
Some banks and credit unions offer accounts built for holiday saving.
They may come with lower fees or higher interest rates to encourage the habit.
Check the fine print first:
- Minimum balance requirements
- Penalties for early withdrawals
If you want more flexibility, a regular high-yield savings account is an alternative.
4. Start shopping early
You don't have to wait for December.
Shopping early gives you time to compare prices, spot sales and use discount codes.
Brueske also recommends checking which retailers offer holiday price-match guarantees.
Policies and dates vary, so read the exclusions before you make a claim.
5. Put cash back to work
Check your rewards balance, because points or cash back can often be redeemed for gift cards, statement credits or travel miles.
If your card has rotating bonus categories, match them to your holiday plans.
Only charge what you can pay off in full each month, since interest can wipe out your rewards.
No credit card? Browser extensions like Rakuten, Honey and Capital One Shopping can earn cash back or apply coupons at checkout.
6. Go homemade or organize a gift exchange
Meaningful doesn't have to mean expensive.
Baked goods, handmade ornaments and handwritten letters are budget-friendly options.
A gift exchange works well for big families or friend groups.
You buy one thoughtful gift instead of many, which saves money and effort.
7. Plan your holiday meals ahead
If you're hosting, a little planning goes a long way.
- Buy non-perishables when they go on sale
- Stock up in bulk
- Hunt for coupons
A potluck can also lighten your grocery bill and your workload.
8. Pick up a seasonal side gig
If you have the time, a few extra shifts can ease the pressure.
Ideas include:
- Working at your favorite store
- Delivering groceries
- Selling handmade goods to friends and family
9. Consider a 0% intro APR card, with caution
If money is tight, a card with a 0% introductory APR lets you avoid interest for a limited time.
Intro periods typically run from six to 21 months, according to Yahoo Finance.
After that, the standard APR applies.
This only works if you have a budget and a plan to pay off the balance before the promo ends.
If debt is hard for you to manage, skip this one.
The bottom line
A little planning now can spare you a lot of stress in January.
Pick two or three tips that fit your life and start there.
References
- Pino, I. (November 3, 2026). 9 smart holiday savings tips to keep your budget on track this year. Yahoo Finance. https://finance.yahoo.com/personal-finance/banking/article/holiday-savings-tips-215534991.html
- PwC (September 2026). Holiday Outlook 2026. https://www.pwc.com/us/en/industries/consumer-markets/library/holiday-outlook-trends.html
- Retail TouchPoints (September 14, 2026). PwC Holiday Outlook 2026: Spending Holds, Shopping Habits Shift. https://www.retailtouchpoints.com/?p=621355
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