The holidays don’t have to mean debt or drama. With these 8 holiday debt don’ts, you can keep this season joyful and start the new year on solid financial ground.
As we head into the holiday season, financial stress is real. Surveys show Americans plan to spend about $1,552 per person this season on gifts, travel, food, and entertainment, a dip from last year as many tighten belts amid inflation and rising costs. That makes this the perfect time to plan wisely and avoid post-holiday financial hangovers.
That means it’s more important than ever to be intentional about holiday spending. The following are 8 key holiday “don’ts” or pitfalls to avoid so you don’t let joyful celebrations turn into years-long debt.
1. Don’t wing it – Going into the season without a plan is a recipe for regret. Take time to set a realistic budget, prioritize expenses, and track what you spend. Avoid putting more on your credit card than you can comfortably pay off within a month or two.
2. Don’t forget the incidentals – Holiday costs extend far beyond gifts. Decorations, travel, entertaining, and shipping fees add up quickly. Factor these into your budget so they don’t sneak up on you.
3. Don’t rob Peter to pay Paul – Resist the urge to postpone regular bills or dip into savings to cover holiday expenses. Instead, trim discretionary spending in other areas and stick to your financial priorities.
4. Don’t start too late – Last-minute shoppers often face higher prices, shipping fees, and stress. Start early, research prices, and buy strategically to spread out expenses.
5. Don’t fall for the hype – Sales and “limited-time deals” can tempt even disciplined shoppers. But if it’s not in your plan, it’s not a bargain. Focus on value, not urgency.
6. Don’t max out your credit cards – High balances can hurt your credit score and cost you more in interest. Keep balances low and aim to pay them off quickly — your future self will thank you.
7. Don’t fall for holiday scams – Scammers ramp up during the holidays, preying on generosity and urgency. Watch for fake delivery notifications, charity scams, and “too-good-to-be-true” online deals. Shop only on secure websites (look for “https”), avoid clicking links in unsolicited texts or emails, and verify charities through trusted sources like Charity Navigator or Give.org.
8. Don’t overlook the best things in life – The most memorable gifts often don’t come from a store. Give your time, attention, and care — write a heartfelt note, cook a favorite meal, or make something by hand.
Financial Tools for ESI EAP members
Remember, you have access to a variety of financial tools by logging in at www.theEAP.com. Here are just some of the tools that can help:
- Personal Financial Coaching: One-on-one Personal Financial Coaching with a certified Personal Finance coach to help with student debt, home purchasing, saving and spending, retirement planning, and creating a budget.
- Personal Finance Training: Members have access to online Personal Finance Trainings. These are available 24/7/365 individually or as a great adjunct to Financial Coaching.
- Financial Calculators: Dozens of online calculators help with budgeting, saving, and “what if” scenarios for rent vs buy on cars and homes, as well as for retirement planning and budgeting.
- Lifestyle Savings Benefit: Access to an ever-changing array of thousands of discounts and cash-back offers on popular brand name food and clothing, home electronics, technology tools, furnishings, travel, and more.
- Personal Finance & Education Center: Self-help resources on personal finance, reducing debt, building budgets, saving, investing, and attaining financial goals.
- Tools for Tough Times: Online resource center with money-saving ideas, articles, and resources to solve problems, reduce costs, and do more with less.