5 tips for creating (and sticking to) a holiday budget

September 26, 2022

Bring your joy level up and your stress level down with these money management tools.

Before you create a budget for your holiday spending make sure you’ve created an overall budget for you and your family. Having something written down (on paper or online) can go a long way to helping ease your concerns about overspending, especially during the holidays when other stresses may come into play.

A good place to start when creating a holiday budget is with your mobile banking app. On the go banking lets you check your balance before you make a purchase (you can also set alerts to let you know when your account gets below a certain amount.) Plus, you can use it to pay bills, deposit checks, and the digital wallet is very helpful during the holidays when you want to split the cost of a gift or a meal out with friends.

Now that you have a good tool in place to help you spend wisely, here’s how to create a budget:
 

1. Set a spending limit: Be realistic and only spend what you can afford. If possible, try to spend from your available savings rather than borrowing. If you haven’t set aside money for this year, consider getting an early start for next year. You can create a separate savings account just for your holiday budget. Even setting aside a few dollars every month can help..

If you don’t have a dedicated holiday account, then think about other sources of money. Maybe your company will give a holiday or year-end bonus? You might also consider ways to adjust your spending by cutting back on household and personal items. For example, maybe you splurge for a pumpkin spice latte once a week instead of daily? 
 

2. List what you plan to buy and how much you plan to spend: A good starting point is to look at what you spent last year. Try to be as specific as possible with your list, assigning a dollar figure to everything. It’s also helpful to assign a priority to items (low, medium and high) so that if you need to cut back you know where to start. And make sure to include a line item for “other” expenses that may come up unexpectedly. 
 

3. Make adjustments: If you do find your expenses are greater than your available funds, it’s time to get creative. The first step is to cut back where you can on the lower priority items. You can also turn to DIY projects for gift giving and be creative with wrapping; throw a potluck instead of a catered dinner; and drive to meet up with family instead of flying or renting a car.

If your budget is still out of whack, consider ways to raise funds like selling items that you no longer use, taking a seasonal job; or earning money by renting out a room in your house or your RV. 
 

4. Keep track of your spending: This is where your app can really come into play. Use your digital banking tool, like Money Tracker in the U.S. Bank Mobile App, to monitor your spending so you don't blow your budget. It’s super easy to use and can be especially helpful while you’re waiting in line for the next available cashier. You can also set up notifications and alerts if your balance gets to a certain point or if you’re spending too much in one category.

Other tactics include using prepaid cards or cash instead of credit or debit cards to help you stick to your limit. But if you do use a credit card, consider using a cash-back or rewards card that gives you the best perks for holiday shopping.

Another great way to stay on track is to work with a friend as your budget buddy. For example, you might ask if you can check in with them before making an online purchase to give yourself a cooling off period. 
 

5. Enjoy your time with friends and family: Finally, make sure to enjoy yourself. The holidays are a time to focus on friends, family and a bright future. If you were able to stick to your budget, congratulations. But don’t get down on yourself if you struggled at bit. Instead use it as a learning opportunity. If you overspent in one area, then you can tweak your budget for next year. If you blew your budget completely, you can get help by speaking with your banker about paying down your debt and how to save more money ahead of time for next year.

 

The U.S. Bank Mobile App can help you view all your accounts in one place. The app and the U.S. Bank Smart Assistant ™ are available in the language you prefer. Just open the app menu, select settings and go to Language to choose English or Español.

Related content

Retirement savings by age

How to track expenses

How to build wealth at any age

Good money habits: 6 common money mistakes to avoid

Loud budgeting explained: Amplify your money talk

What to do with your tax refund or bonus

Investment strategies by age

How to start investing to build wealth

8 Ways for small business owners to manage their cash flow

5 financial goals for the new year

How to get started creating your business plan

How to financially prepare for pet costs

How to Adult: 5 ways to track your spending

Checklist: financial recovery after a natural disaster

Checklist: 10 questions to ask your home inspector

Closing on a house checklist for buyers

Family planning for the LGBTQ+ community

Preparing for adoption and IVF

11 essential things to do before baby comes

Webinar: Uncover the cost: Starting a family

3 tips for saving money when moving to a new home

Pros and cons of a personal line credit

Tips for handling rising costs from an Operation HOPE Financial Wellbeing coach

Tips to earn that A+ in back-to-school savings

5 tips for being a great board member

Mindset Matters: How to practice mindful spending

Uncover the cost: Wedding

Using 529 plans for K-12 tuition

How to manage your finances when you're self-employed

How grandparents can contribute to college funds instead of buying gifts

How to accept credit cards online

Make your business legit

How to establish your business credit score

Talent acquisition 101: Building a small business dream team

10 tips on how to run a successful family business

How to sell your business without emotions getting in the way

5 things to know before accepting a first job offer

How to save money while helping the environment

Is raising backyard chickens a good idea financially?

Working with an accountability partner can help you reach your goals

7 steps to prepare for the high cost of child care

How to decide when to shop local and when to shop online

How to save for a wedding

How I did it: Turned my side hustle into a full-time job

Stay on budget — and on the go — with a mobile banking app

Multiple accounts can make it easier to follow a monthly budget

5 things to consider when deciding to take an unplanned trip

How to talk to your lender about debt

Stay committed to your goals by creating positive habits

5 tips for creating (and sticking to) a holiday budget

How to test new business ideas

How can I help my student manage money?

How to increase your savings

Bank from home with these digital features

Preparing for retirement: 8 steps to take

How I did it: Switched career paths by taking an unexpected pivot

Year-end financial checklist

Key components of a financial plan

Achieving their dreams through a pre-apprenticeship construction program

How I did it: Transitioned from the military to a private sector career

Don’t underestimate the importance of balancing your checking account

How to gain financial independence from your parents

How to build a content team

Do your investments match your financial goals?

Credit: Do you understand it?

How to manage money in the military: A veteran weighs in

A beginner's guide to investing

Are professional movers worth the cost?

Beyond the mortgage: Other costs for homeowners

Spring cleaning checklist for your home: 5 budget-boosting tasks

Home buying myths: Realities of owning a home

Should you buy now, pay later?

U.S. Bank asks: Do you know what an overdraft is?

Tips for working in the gig economy

Tips to overcome three common savings hurdles

Money Moments: 8 dos and don’ts for saving money in your 30s

Save time and money with automatic bill pay

Helpful tips for safe and smart charitable giving

Growing your savings by going on a ‘money hunt’

Why a mobile banking app is a ‘must have’ for your next vacation

Tips to raise financially healthy kids at every age

How I kicked my online shopping habit and got my spending under control

Friction: How it can help achieve money goals

It's possible: 7 tips for breaking the spending cycle

Financial checklist: Preparing for military deployment

Here’s how to create a budget for yourself

Webinar: Common budget mistakes (and how to avoid them)

Are savings bonds still a thing?

Allowance basics for parents and kids

9 simple ways to save

Do you and your fiancé have compatible financial goals?

3 ways to keep costs down at the grocery store (and make meal planning fun)

What military service taught me about money management

6 pandemic money habits to keep for the long term

College budgeting: When to save and splurge

How I did it: Paid off student loans

The A to Z’s of college loan terms

How to save money in college: easy ways to spend less

Costs to consider when starting a business

Webinar: Uncover the cost: Building a home

Adulting 101: How to make a budget plan

You can take these 18 budgeting tips straight to the bank

How I did it: Learned to budget as a single mom

Your 4-step guide to financial planning

Personal loans first-timer's guide: 7 questions to ask

Consolidating debts: Pros and cons to keep in mind

Improving your credit score: Truth and myths revealed

Dear Money Mentor: How do I set and track financial goals?

Retirement income planning: 4 steps to take

Lost job finance tips: What to do when you lose your job

What I learned from my mom about money

Financial gifts can be a valuable – and fun – choice for the holidays

What financial advice would you give your younger self?

How to stop living paycheck to paycheck post-pay increase

Practical money tips we've learned from our dads

What you need to know about renting

What’s in your emergency fund?

Certificates of deposit: How they work to grow your money

How I did it: Deciding whether to buy an RV

How I did it: Joined a board of directors

Practical money skills and financial tips for college students

Money management guide to financial independence

Personal finance for teens can empower your child

5 reasons why couples may have separate bank accounts

U.S. Bank asks: Transitioning out of college life? What’s next?

Co-signing 101: Applying for a loan with co-borrower

How to use debt to build wealth

How to talk about money with your family

How to build credit as a student

30-day adulting challenge: Financial wellness tasks to complete in a month

Money Moments: Tips for selling your home

How I did it: My house remodel

Does your savings plan match your lifestyle?

Webinar: Uncover the cost: College diploma

How I did it: Bought a home without a 20 percent down payment

Transitioning from the military to the civilian workforce

Military homeownership: Your guide to resources, financing and more

U.S. Bank asks: Do you know your finances?

Webinar: Uncover the cost: Home renovation

Webinar: Bank Notes: College cost comparison

How you can prevent identity theft

Parent checklist: Preparing for college

U.S. Bank asks: What do you know about credit?

7 financial questions to consider when changing jobs

How to best handle unexpected expenses

Disclosures

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.