Stress about money can take a lot of the joy out of the holiday season, but a Texas A&M AgriLife Extension Service expert has some tips to help make your holiday season a little merrier through budgeting, prioritizing and considering gifting alternatives.

Holiday spending can be a major stressor during the holidays, said Lakshmi Mahadevan, Ph.D., AgriLife Extension specialist in mental health and well-being in the agency’s Family and Community Health unit, Bryan-College Station. But taking time to plan a holiday budget and sticking to spending limits you set can reduce overspending and the stress that usually comes with it.

Make a list

A holiday budgeting list includes gifts, shopping expenses, entertainment, additional food and drinks, travel funds and other extra expenses for you and/or your family. Budget ahead and prepare for additional expenses by being flexible to change plans and adjust the budget as needed.

Fit holiday expenses in your typical budget

Tightening your discretionary spending a little each week leading up to the holidays can help you fit extra expenses like gifts into your regular budget. For example, set a “gift fund” goal weeks ahead of time because a little saving here and there can reduce the strain when it’s time to buy.

Set spending limits

For gifts, set dollar limits for each person on your list and do your best to stick to those limits. Do the same for other extra holiday-related items on your list.

Track your spending

Keep a running tally of your expenses and keep the total as close as possible to the total amount you have budgeted. Create a spreadsheet with a column that lists your planned expenses and put your actual expenses in the next column so you can visually remind yourself how close you are to your set budget.

Pay with cash or debit card

Credit card rates are high, and using credit, especially on larger purchases, usually means you’ll keep paying for the item well after the holidays are over. So, pay with cash or debit card to avoid additional costs.

Watch for sales and compare prices

Finding sales and using discount codes can cut expenses, so take the time to shop around. Also, there are apps that make it easier to compare prices.

Make homemade gifts

Investing some time and creativity into handmade gifts for loved ones can stretch a budget and may be appreciated more than something bought at a store. Do-it-yourself gift projects also provide an opportunity for quality family time.

Regift unused gift cards

If you’ve got unused gift cards, gift them. You can even add money to cards with unused balances to round them up to the dollar amount you’d like to give.

Remember your budgeting successes

Mahadevan said overspending and increasing debt can increase financial stress beyond the holiday season. She suggested documenting all your budgeting successes this holiday by creating a detailed record of your expenses, discounts found and effective saving techniques.

“Reflect on what worked well and what didn’t, and consider developing a holiday planning checklist,” she said. “By saving these insights and strategies as tools in your holiday toolbox, you’ll be well-equipped to apply them next year, ensuring an even more successful and lower-stress 2025 holiday season.”