If you’re a list maker, the holidays can feel overwhelming.

There are gifts to purchase and wrap, parties to arrange and travel arrangements to make.

Have you identified the tasks on your list? Do you intend to buy gifts for your family, host holiday parties, give to your favorite charity, or travel to visit family members?

And can you achieve all those goals without creating additional debt?

Nearly three in 10 Americans who used credit cards to pay for holiday gifts last year (28%) still haven’t paid off their balances, according to NerdWallet’s 2024 Holiday Spending Report. Likewise, the same percentage who last year put flights and hotel stays on a credit card are still carrying that debt today.

Spend time planning, then pencil out a holiday budget that you can realistically follow throughout the season. In January, you’ll be relieved to enter the new year without additional debt.

First, review your current finances and determine how much money you have available to spend this season.

Next, pencil out the budget: Allocate a dollar amount to each category, such as $1,000 for family, $250 to charity, $2,500 for travel, and $1,000 for entertainment. Don’t forget to include holiday clothing, new decorations and wrapping supplies.

After you identify all the necessary categories, break them down again.

For example, under family members, allocate what you plan to spend on each person, without going over the pre-budgeted amount.

A survey of more than 2,000 US adults, commissioned by NerdWallet and conducted online by The Harris Poll, asked Americans about their holiday shopping and travel plans. According to the survey, more than 4 in 5 Americans (83%) plan to buy gifts for friends and loved ones this holiday season — spending an average $925.

Additionally, the survey found nearly half of Americans (49%) plan to spend money on flights and hotel stays during the 2024 holiday season — spending an average $2,330 for these expenses.

These numbers may seem unrealistic, but every household is unique. Some will spend more and others less. As we know, many people are still paying off debt from last year. The key is to spend no more than you can afford.

To manage your resources, find creative ways to include holiday festivities in your life. Spending time with your family making homemade gifts or cookies, looking at Christmas lights in festive neighborhoods, spending a day playing in the snow, or watching holiday movies together are inexpensive experiences that will create lifetime memories.

When we are busy, our thoughts are elsewhere. Thinking about someone living alone or experiencing a challenging period in their life may not be top of mind. Sadly, these people may be forgotten during the holidays. There are many ways to enrich your holiday experience, as well as theirs, while staying within your budget.

The gift of time

Seniors can feel especially lonely during the holiday season. Visiting with the residents at a senior center, or an elderly neighbor, can be both rewarding and fulfilling. Spend an afternoon chatting, playing games, or sharing holiday stories with them.

A senior or disabled neighbor may need assistance with a household task. Offer to help them with something that they are not capable of doing, such as changing a light bulb, shoveling snow on their walkway, or mailing a package.

Local shelters are often in need of volunteers, especially during the holiday season when more people seek warmth and assistance. Many shelters welcome volunteers of all ages, so consider bringing your family. Children will learn that the holidays are about giving to those who don’t have the same privileges they do. Spend time preparing and serving meals, organizing donations, or cleaning up shared areas.

By giving time, you can provide comfort to someone who may not be as fortunate as you. You’ll come away with warm feelings, and a newfound connection because you showed someone you cared. Your thoughtful gesture could be the highlight of that person’s holiday season.

Write a letter

Send a beautiful card with a handwritten note to a veteran, elderly resident at a convalescent home, or a sick child in the hospital. For the cost of a card and stamp, you can send an uplifting letter and positive words of encouragement.

Adopt a child or family

Local charities, schools, or religious organizations can connect you with a family or child in need. Reach out to local organizations for names of people who would appreciate help. Discuss your budget with your family, then include them in the gift-giving process. They will learn that giving to others can make their holiday season a bit brighter.

Pay it forward

The next time you’re in line getting a coffee or fast food, offer to pay for the order of the person in the car behind you. You will never know how much this will impact their day, but often, your simple action will keep on giving.

Planning for the holiday season, following a budget, and giving to others can help ease the stress and financial anxiety that is often felt during this period. The true spirit of the holiday season isn’t about how much money you spend, but it is about creating memories with your loved ones and others who may not be as fortunate as you.

Teri Parker CFP® is a vice president for the Riverside office of CAPTRUST Financial Advisors and has practiced in the field of financial planning and investment management since 2000. Contact her at  [email protected] .

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