Smart Spending Strategies for the 2025 Holiday Season

As we’re now entering November, the holiday season is officially on the horizon. That means one thing for your finances: it’s time to start planning your holiday spending now—not during the rush, not once the stacks of credit-card statements start piling up.  

My mission as your partner in empowering your financial future is to help you approach the holidays with clarity, control and confidence.  

And let’s be honest: this holiday season is going to be more expensive than previous years as 2025 has already been a wild ride for prices. It feels like prices are up on everything. According to GOBankingRates, prices on beef are up nearly 7 percent from September 2024 to August 2025. Coffee prices have gone up nearly 21 percent from August 2024 to August 2025, according to Daily Coffee News.   

But we can start planning. And here are some tips to do that:  

Why You Should Start Now (and Why Waiting Until December Costs You) 

Many economists are warning that imported goods like electronics and toys may cost more closer to Christmas or Hannukah due to tighter inventory and shipping costs. By starting your shopping early, you’ll have more time to compare prices, find deals, and avoid paying higher prices for last-minute purchases. Shopping gradually throughout November can also spread out the financial impact instead of cramming it all into one month. 

Another tip: use cash or debit whenever possible. If you do use a credit card, commit to paying it off in full. And according to Investopedia, the average credit card interest rate is about 24 percent, which means a $1,000 balance could cost you hundreds in interest if you carry it into the new year. A good rule of thumb—if you can’t pay it off when the bill arrives, skip the charge. NerdWallet reports that 31 percent of people who used credit cards for their holiday shopping in 2024 are still paying it off.  

According to Forbes Advisor the average credit card debt for Americans is $6,473, up nearly $160 from the previous year. But the good news is that in our Latino community the average credit card debt is lower, falling in at about $5,500. And we want to bring those credit card balances down, not add to them.  

Rethink the Way You Gift to Save 

Speaking of making the decision to not charge when you can’t pay the charge off, I recently saw a meme encouraging people to not go into debt this holiday season since times are tough for many people. I agree. And it seems like people might be listening as the National Retail Federation is forecasting that Americans are planning to spend less for the holidays this year. NRF reports people plan to spend about $890 per person, versus $902 last year.  

There are ways to lighten the financial burden of giving gifts to everyone by exploring alternatives. Instead of buying something for everyone, organize a Secret Santa or White Elephant exchange so each person buys just one gift.  

Keep in mind that some surveys found that 53 percent of Americans receive gifts they don’t even want and collectively, Americans are planning to spend about $242 billion this holiday season on gifts alone, according to NerdWallet.  

So maybe instead of wasting money on gifts most people don’t want, make a pact with your family to have no gift exchanges whatsoever and focus on shared experiences—like hosting a movie night, cooking a meal together, or starting a new tradition together. 

But if giving is something you feel you have to do, you always the option to gift your time. Offer to babysit for a busy friend, help an elder with their errands, or share your skills with someone who could benefit. These kinds of gifts are priceless and they create connection, not clutter. 

Save Beyond Shopping 

Holiday overspending isn’t limited to presents. Eating out, spontaneous coffee runs, and “treat yourself” moments can quietly drain your wallet.  

Try planning home-cooked meals or organizing potlucks instead of dining out multiple times. If you do plan to go out, make it intentional—pick one or two special outings and enjoy them fully. 

And when it comes to shopping, remember: planning ahead often unlocks better deals. Use price alerts, compare online and in-store offers, and avoid waiting until the last week before Christmas, when prices spike and availability shrinks. 

A Season for Intention 

The holidays should be a time of gratitude and connection, not financial stress. By planning early, spending wisely, and choosing meaning over materialism, you can start the new year with peace of mind—and maybe even a little money left over. Don’t be part of the 31 percent who will carry a credit card debt into another year if you can help it.  

Because the best gift you can give yourself this season isn’t found under the tree. It’s the freedom that comes from knowing you’ve honored your finances with corazón. 

This material contains general information to help you understand basic financial planning strategies. Nothing in this article should be construed as a recommendation for your personal situation, nor should it be used to make decisions before you discuss your needs with your financial advisor.