Financial Stress at Christmas: 7 Tips For Making It Through the Holidays

Last Updated: December 10, 2025 by Michael Kahn. Published: December 8, 2025.

Christmas can be a wonderful time of year, but it’s not always a completely joyous occasion from beginning to end. It can be stressful figuring out how you’re going to see everyone in such a short window, especially when it’s a time of year that should also be relaxing, and then there’s the whole money factor.

In the US, UK, and Canada, the average person spends around $1000 at Christmas. That can be a pretty big hit at a time when families are having to tighten their belts more than ever.

However, while it might not be possible to go through the entire holiday period without spending a cent, you’re not entirely at the mercy of Christmas spending. A little bit of planning can go a long way towards making sure that you can keep the financial side of things in check — and keep the stress levels down. 

In this post, we’ll outline some of the best strategies for managing your finances during the holidays, which should ensure you can embrace the season without worrying about the damage it’s doing to your bank account. 

Start Saving Early

The good thing about Christmas is that we know when it’s going to arrive, so it’s not exactly an unexpected expense. That puts you in a strong position to start saving early so that you have a financial warchest once the season arrives. After all, many people who struggle with spending at Christmas do so because they’re trying to suddenly meet additional costs on top of all their usual expenses.

Even putting away small amounts of savings each month can add up to a significant sum if you start early enough. There are even dedicated holiday-specific saving platforms, such as Park Christmas Savings, that make it as easy as possible to spread the cost of Christmas over the year. 

By the time Christmas rolls around, you’ll have the peace of mind of knowing that you have all the money you’ll need to make it through the season without decimating your main bank account. 

Think Twice About Gifts

It’s nice to give gifts, sure, but alas, you’re not Santa Claus. You can’t give gifts to everyone in your life, at least not without doing damage to your finances. It’s recommended to make a list of which friends and family members you should buy for, and which ones you probably don’t need to. It doesn’t make much sense to harm your financial standing by buying gifts for people who wouldn’t mind if you didn’t get them anything anyway. 

If you feel uncomfortable about this, or you think some people might feel strange if you didn’t get them a gift, then speak to them directly. People are understanding, and they’re unlikely to be hurt if you explain that you need to have a more affordable Christmas this year!

Book Travel Early

If you need to fly/take a trip/stay in a hotel, then it’s recommended to book your travel plans as early as possible. This can help in a couple of different ways. First, you’ll nearly always end up spending less money compared with if you waited until the last minute. It’s usually much cheaper to book a flight well in advance, rather than waiting until nearly all the seats have gone, at which point the cost could be significantly higher. 

Second, it gets the expense out of the way early. Waiting until November/December will not only lead to spending more, but it’ll also take money out of your account right at a time when you need it the most. 

…Or Don’t Travel

Another option is to simply not travel. Now, of course, that’s not always a realistic option. If all your family members are located in a place far from where you live, then you might need to make the trip. But there are instances when you might be able to stand your ground. If you normally make the trip to see loved ones, then why not ask if they can come to you this year? This can be recommended even if it’s only a 1 – 2 hour drive away, since, well, it can cost a lot to travel by car these days! 

Cut Back On Other Expenses 

One of the issues with Christmas is that people have to spend extra money on top of their original expenses. The cost of Christmas would be a lot more manageable if all the other routine costs disappeared for a month, but that’s not the case. 

With that said, while there will be some expenses that you simply have to pay (mortgage, internet, etc), there could be some that you can cut back on. Even relatively small things, like avoiding buying coffee or lunch, can lead to noticeable savings at this time of year.

Learn to Say No

Getting together with friends, family, and acquaintances is one of the fun things about Christmas, but it can also be one of the biggest expenses. In some cases, you might find that you have multiple different social gatherings all in one day. If that involves going to a bar or restaurant, then your bank balance will take a big hit.

But remember that you don’t always have to say yes. If you want to go and can afford it, then do so. If you’re saying yes because you feel obliged to, then say no, especially if the plan involves going somewhere expensive. It can be frustrating to have to spend money when you’re on a budget, but it’s even worse when someone else is spending your money for you. 

Keep Track of Spending

Finally, be sure to keep track of your spending. This is a useful strategy at any time of the year, but it’s especially recommended during the holidays, when costs can quickly add up. Even seemingly small things, like buying Christmas cards and wrapping paper, can make a difference to your bank balance. Track your spending, and it’ll be less likely that you’re shocked by the state of your bank balance once January rolls around.