Your Money: Holiday spending without the guilt

Bruce Helmer and Peg Webb After several years of stubborn inflation and steep borrowing costs this holiday season finds various families determined to celebrate but quietly worried about how much they re spending With the average American planning to shell out roughly on gifts movement and entertaining this year up from about in those worries are understandable Furthermore tariffs have already raised prices by an average of according to the Harvard Business School Pricing Lab s analysis of more than goods Ultimately companies pass along their increased costs to consumers Frequent holiday staples like toys electronics and clothing are certain of the products the majority impacted by tariffs with costs increasing as much as in particular categories Even for people who manage to stay within budget six in shoppers later regret at least several of their purchases especially parents with young children who often overspend to make the season perfect That buyer s remorse doesn t only come from an empty wallet It also comes from guilt the uneasy sense that we ve spent too much or on the wrong things or for the wrong reasons The good news is that a limited simple mindset shifts and habits can help you celebrate generously without feeling financial regret come January Start with delight not numbers Financial advisers usually tell clients to keep emotion out of money decisions The holidays are the exception Budgeting by emotion and buying what truly brings delight to the recipient can be more effective than budgeting by category Start by making a joy-per-dollar list Which purchases last year made you happiest Which ones barely registered once the wrapping paper hit the recycling bin Cut the low-joy categories first Then pre-commit an overall number for generosity covering gifts charitable donations and gatherings and say it out loud to a partner or friend This small act of accountability helps keep your plan real Use a cap that fights spending creep A common rule of thumb is to keep total holiday spending within - of annual income but you should pick the level that s right for you Translating that limit into weekly mini-budgets between now and New Year s can prevent that just-one-more-gift mentality The idea isn t to cut out celebration but to contain it so you can enjoy the season without regretting overspending Buy early buy fewer buy better Inflation may have eased but prices on multiple goods remain higher than pre-pandemic levels Stretch your dollars by shopping early and intentionally Prioritize one meaningful gift per person rather than a pile of filler gifts If you re traveling or hosting fold those costs such as gas airfare hotels and food into your holiday plan from the start instead of treating them as extras Whenever doable choose experiences over material goods a family concert a cooking class or tickets to a local attraction These memories often outlast items And if you can shop local and purchase items that reflect your values Spending that aligns with your principles will ultimately feel more rewarding in the long run Cards cash and buy now pay later Currently s average credit card interest rate is roughly meaning every impulse swipe of your card can hastily become expensive If you tend to carry a balance consider using a debit card or a prepaid spending account for gifts Turn on real-time spending alerts in your mobile banking app this can serve as a modern substitute for the old cash-envelope system And be cautious with buy now pay later BNPL plans Surveys show nearly half of BNPL users regret at least one purchase If you do use one limit yourself to a single BNPL loan at a time and set calendar reminders for each payment Three quick tactics to curb impulse buying Apply the -hour rule Leave online items in your cart for two days if you still want them after hours clink checkout Say no to instant-discount store cards Their teaser offers often come with higher interest rates Unsubscribe and mute Reducing promotional emails and retail app notifications can help you stick to your list When you ve already overspent If the damage is done don t panic just prioritize Pay down the highest-rate balances first Return unopened items or exchange them for shared experiences instead Then automate payments above the minimum to ensure progress A short-term balance-transfer card can help but only if you re confident you can clear the debt before the low-interest window closes Focus on gratitude not guilt Ultimately guilt fades when your plan matches your values Give yourself permission to celebrate wisely The holidays are about connection not perfection and about sharing what matters most of not what costs the majority of A little planning a little perspective and a lot of gratitude can turn this year s spending season into one you ll remember fondly not fretfully And that s a gift worth keeping Related Articles Your Money Financial planning tips for America s heroes Your Money Financial stress can lead to avoidance survey says Your Money Cybersecurity and your money in the AI era Your Money Should you tell your children how much you have Inhabitants hearings planned on Xcel Vitality s proposed rate increase The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of Your Money on WCCO AM on Sunday mornings Email Bruce and Peg at yourmoney wealthenhancement com Advisory services offered through Wealth Enhancement Advisory Services LLC a registered outlay adviser and affiliate of Wealth Enhancement Group