Simple guidance for a stressful time
The holidays can be joyful and financially draining at the same time. Between gifts, travel costs and endless seasonal events, even thinking about what you still need to buy can feel overwhelming. To help make this time easier, budgeting expert Michela Allocca, creator of Break Your Budget, shared practical strategies for making smarter money decisions without losing the spirit of the season.
Allocca’s tips range from skipping obligatory gifts to using cashback rewards to fund next year’s holiday spending. She even shared a few of her favorite affordable gift ideas, including a luxe-looking laundry detergent that feels far more expensive than it is.
Track what you spend to avoid a January “hangover”
Allocca stresses that one of the biggest mistakes people make during the holidays is simply not paying attention. She recommends tracking every purchase and noting what you’ve already bought. This makes it easier to stay within your limits and prevents that dreaded overspending shock when the new year begins.
“People throw caution to the wind this time of year,” she says. Keeping track now helps you stay alert, make better choices and adjust quickly when needed.
Start a holiday fund — even now
Allocca begins saving for holiday expenses in January, but says it’s not too late for anyone who hasn’t planned ahead. The trade-off may involve trimming smaller everyday spending. That might mean skipping your morning coffee shop run or pausing dinners out for a couple of weekends.
She suggests doing a short “flash save” to free up money quickly for gifts still on your list.
Be honest about who really needs a gift
Gift giving can feel like a love language, but Allocca encourages people to be intentional. You don’t need to buy something for everyone you know. It’s perfectly fine to skip gifts given out of obligation or guilt and instead focus your budget on meaningful items for the people who matter most.
For moments when you truly do need a small, universal gift, she recommends a premium laundry detergent — a practical luxury most people wouldn’t buy for themselves.
Use cashback rewards to plan for next year
Allocca also suggests using cashback sites and apps throughout the year, then putting those earned dollars directly into a high-yield savings account dedicated to the holidays. This creates a built-in cushion that makes future gift planning much easier.
“It seems silly to plan for the holidays in January,” she says, “but it will make your life so much easier by year’s end.”
Homemade gifts still matter
Allocca is a fan of homemade presents, noting that they’re thoughtful, personal and budget friendly. “We need to bring those back,” she says, adding that she loves giving fresh sourdough bread.
More gift ideas from editors and experts
If you’re still searching for thoughtful items that won’t break the bank, explore curated guides for gifts under $10 and under $50. Fashion experts also selected 27 standout style items for this season, while journalists around the world highlighted globally loved gifts that Americans often overlook.
For those impossible-to-shop-for friends, there are creative picks such as timeless earrings and custom paint-by-number kits. And if you need everything in one place, there’s a master list of 163 gift ideas covering kids, tweens, creators and more — helping you avoid that last-minute gift card scramble.
