Life Kit - No, it's not too early to start saving for the holidays

Episode Date: September 17, 2026

Holiday spending can sneak up on you. From endless gift shopping to expensive flights home, it's easy to lose track of your long-term goals in this season of financial obligations. This episode, Life Kit experts share tips on making a holiday spending plan so you can enjoy the winter festivities guilt-free.Follow us on Instagram: @nprlifekitSign up for our newsletter here.Have an episode idea or feedback you want to share? Email us at [e-mail] public media with NPR+ and enjoy perks for over 25 podcasts like this one. This show’s perks include sponsor-free listening and convenient playlists of popular help topics like personal finance, getting healthy, and more. Learn more at plus.npr.org.See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.NPR Privacy Policy

You're listening to Life Kit and Mariel Segarra. Now, if I'm you, maybe I'm thinking budgeting for the holidays. It's a little early, don't you think? The pumpkins and the skeletons haven't even come out yet. But when I asked this very question to accredited financial counselor Bethel Hapty, she said a hard... No. It's always a good time to think about future spending,

especially because you can do a lot more. more when you have more time. Let me just set a goal here for us. Knowing what we know about credit card debt, how high those interest rates are, how the debt can snowball, let's plan ahead so we don't accumulate debt in December that we'll have to pay off in 27. That is the ideal scenario, is that the money that you're spending is just the money that you're spending instead of the money you're spending plus interest to credit card companies in January and February. On this episode of Life Kit, How to Create a Holiday Spending. plan now. Starting with takeaway one, get a baseline. Bethel says a lot of the people she talks to

don't actually know how much money they bring home every month after taxes and health insurance premiums and retirement contributions. So that's the first number you want to know. That pot of money per month. And then I think even fewer people beyond that know the amount that they need to run their life or rent, transportation, those fixed expenses would also those variable expenses that are pretty consistently high and necessary, daycare, groceries. Also include any debt payments, and that's your second number, the bare minimum you spend on necessities. Then you're going to do the math, the big pot of money minus the second number. Okay, what's left? That's the number that you'll be able to use for your fund spending,

discretionary spending in the month, or that's the money that will go towards savings. So creating even that rough-and-tumble baseline budget is like really important. Now you've got about three months, a little more, to save up for the holidays. So multiply that number by three. That's how much you're working with. And that's how much you can afford to budget for holiday expenses, including travel, gifts, seasonal activities, you know, a little sleigh ride, and hosting gatherings. It's a bit of an overestimate, though, because you also need to consider the non-necessities that you're already spending money on. You probably don't want to.

skip out on everything that's fun for three months just to ball out over the holidays. But maybe you do. That is up to you. Now let's get a little more information by doing a retrospective. Look back at your credit card and bank statements and figure out how much money you spent on the holidays last year. Can you afford to spend that much again without taking on debt? Also consider what did you spend the money on? And how do you feel now about having spent money on those things. How happy were you with those purchases? Like, were those expenditures actually aligned with how you want to spend in the holiday season? Okay, takeaway two. Spread out your holiday expenses. As we talked about, one way to do this is to start saving money now that you can use on holiday

gifts and travel and events come late November, December. If you're currently setting aside money in a savings account, you might just label some of it differently. You know, this is for holiday spending. Chidozhi Ibuuchi is a financial therapist and gave us this advice in an episode about saving up for big events like a friend's wedding. Maybe it could be 50 bucks a week or 50 bucks a month that adds up to how much you think you may spend and that's a really cool automatic way to start saving towards these expenses. You can also look at your discretionary spending and cut back so you can save more. Maybe you don't book the expensive weekend trip this fall or you do yoga at home with YouTube videos rather than going to classes, or you cancel the streaming subscription

that you don't use. Really getting a sense of what your non-essential spending is each month, and if you can make some sacrifices there to save more. I asked Bethel, what about temporarily decreasing the amounts you're saving for retirement, as long as you set a reminder to reverse those changes come New Year's? She wasn't a huge fan of that plan, but says it might be an option for some. look, when I was paying off my student loans, like, very rigorously, I had like 60K in student loan debt that I killed in two years. And during that time, I just went down to the company match.

So I wouldn't lose the free money that was on the table from that. And then after that, I went back up. So that is certainly a lever that people choose to pull. The other thing you can do is spread the actual spending out. For instance, buy gifts now. I remember I took a trip to L.A. and I saw something that was perfect for a co-worker. She would always get these like cratefuls of LaCroix delivered to the office. And I saw this really cute LeCroix ornament. It was adorable. And I was like, this is a perfect little thing for the holidays. And so I just, I bought it then in there in like the summertime. And I took it with me back to the East Coast. And I gave it to her at Christmas. time. I have a box of gifts under my bed, and when the holidays come, I am so glad that I already found and paid for presents for my family. Now that you have a sense of your finances, how do you

actually want to spend this holiday season? We'll help you figure that out after the break. Okay, takeaway three is to choose your big swings. You know now basically how much money you're working with, but how do you prioritize? Bethel says you want to make sure your plan, your holiday budget reflects what you care about the most. One strategy is to like imagine what a perfect holiday season actually looks like for you to say like this would happen and that would happen and I would be able to make it to these parties and I would be able to make this trip and I would feel really calm and I would really do this one activity because it makes me feel really good. Nero Feliciano is a licensed clinical social worker. She wrote a book called All Is

calm-ish about the pressure to do it all over the holidays. And I think the question we have to ask is, okay, what is really important in this season and what's taking away from the things that are the most meaningful parts of the holiday? And what can I let go of in this season? We all want to feel connected in this season. And there's so many things that steal that ability from us in trying to make this perfect for so many people and create those memories. Nero suggests that you think about three activities that you don't have to do, but that you get to do this holiday season, the stuff you're actually excited about. Here's one of hers.

Even things like I get to bake cookies this year, which sometimes seems like a chore for me. Part of that is because I know my daughter's coming home from college. And now I recognize the value of having all my kids under my roof. It's not something that I take for granted anymore. You can also name three moments that you want to be truly present for. Maybe it is that Christmas morning or that dinner with the family or at the concert that you're attending. And in that moment, put away your phones as much as you can and really show up for it with as much as you can bring in that moment. And I think that's a good start. Notice many of these things don't require you to spend big money. And they might also help you feel less pressure to do everything all out for the whole. holidays. Maybe instead you could try to get a little bit of rest. We have an episode on seven

different kinds of rest. Take a look at that to see what kind you might be craving the most. All right. Next up, takeaway four. Choose what you're going to do cheaper, later, or not at all. Your budget is going to come in really handy here. You've already done the math. You know what you can afford to spend. And you know what's most important to you. So when you get an invite or you feel social pressure to buy something. Ask yourself, is this in my budget? And keep in mind, your budget is not going to be the same as everyone else is. Jasmine Ramirez Ibouchi, married to Chidozibubuchi, the financial therapist, is a licensed clinical social worker who focuses on money and mental health. There's seasons for spending, seasons for saving, and be mindful of what season you might be in.

You might be in a different season than a friend or a family member and just, lean into it. A reminder here, pretty much all the activities you do and purchases you make for the holiday season are optional. Though it doesn't always feel that way. Wendy De La Rosa is a behavioral scientist at the University of Pennsylvania's Wharton School. We posed a question to her once from a listener who had 18 nieces and nephews, many of whom she wasn't close with. And she was wondering if she needed to buy all of them presents. I would ask the letter writers to say, like, what are your values? Like, how do you want these children to feel? Like, do you even want to be a significant part of their lives?

If the answer is yes, then let's think about creative ways in which you can show up for them that doesn't leave you in financial ruin. Like, you know, how can you organize a family gathering at your place or at a park where you're organizing everything and you give all the children just like an awesome memory? Wendy says the real gift here is the gift of connection. It's more important to do a face time on your niece's birthday than give her a toy that, let's be honest, she's going to be over in five minutes. And hey, this strategy also happens to save you money. Then you have sort of created a boundary for yourself as to how you're going to show up.

So you're not perpetually suffering and putting yourself over the clothes or saying, I'm not doing enough for XYZ. No, you've done the internal hard work to say there's only X number of dollars in my bank account. I only have X limited amount of attention. I am purposely going to decide to invest in these relationships. And I'm very clear-eyed about it. Some more advice on how to handle gifts in big families comes from Tiffany Dodson Davis, a beauty editor at Harper's Bazaar.

She says you could limit the number of people you're giving gifts to. Like, I'm only going to give gifts to my parents. or my parents and grandparents, or only to my significant other. Also, she says, you don't have to spend a lot of money to give a meaningful gift. And sometimes it feels even more special to celebrate big moments with small gestures of appreciation. Like, for instance, my sister, this is not really holiday related, but it's gift related. But my sister recently moved into a new home, and I surprised her with a bundle of small kitchen utensils that she didn't realize that she needed. like a whisk and a spatula.

But yeah, she was really touched, and it really meant a lot to her, even though, you know, the gift itself didn't cost me too much. But it, you know, made her transition a little easier. And I think those are really strong starting points to think about when shopping for other people. And then also, I think, you know, a homemade gift is a great option as well. And something that shouldn't be ruled out, you know. Tiffany's fiancé hand wrote her a poem and framed it. And then he gave to me one of you.

or on Christmas and is still one of the most special gifts that I've ever received from him. I've actually done something similar. I found a poem that my mom wrote in her high school newsletter, wrote it out by hand, framed it, and then framed an illustration to match. I think perhaps maybe a simple gift that represents a family member that maybe passed away or perhaps an heirloom within your family that's being passed down can be super sentimental. And I think just telling the story that accompanies the gift can be an emotional experience for the recipient and the giver. Bethel says another gift that you can offer on a budget is your time and labor. Like helping your mom clear out the attic because she keeps asking you to do that.

And it would actually be a huge gift to her to actually get this thing off of the to-do list for her. The other thing to keep in mind is that a lot of the stuff we cram into December, is doable in January and February, and is often cheaper. Scott Keyes is the founder and chief flight expert at going.com, formerly known as Scott's cheap flights. He understands why people travel at Thanksgiving and the December holidays. But from a travel perspective, it's one of the worst times to travel from disruptions to crowds to the price of the flights. My secret best advice for travel over the holidays is if at all possible, just,

don't do it. Scott says if you can wait and travel in January, you will probably have a much better experience and save money. My favorite date of the entire years, around January 8th, I circle that date on the calendar because whereas flight prices really get inflated over the Christmas New Year period, around January 8th, they just fall off a cliff from the most expensive time of the entire year to the absolute cheapest. Caviats here. The exact date in January for the cheapest flights can vary, depending on your route, and if you're traveling domestically or internationally. But still, worth considering. Oh, and merriment, by the way, we are allowed to have that year round.

And boy, do we need it come January when the Christmas lights come down and our homes lose some of their sparkle. Why not plan a winter gathering in January instead of a big holiday dinner in December? That way, you can spread out the cost even more. And you won't have to pay extra for there's napkins with the snappy little gingerbread man on them. I know. Super cute. But do you need them? All right, y'all, it's time for a recap. Take away one. Get a baseline. Figure out how much you actually bring home every month and the amount that you need to spend on necessities. Subtract the smaller number from the bigger number and see what you have left.

You've got about three months to save up for the holidays. That's how much you could potentially save every month. Also do a retrospective. See how much you spent last year and whether you can actually afford to do that again. Takeaway two, spread out your holiday expenses. Start saving money now and start actually buying stuff now like plane tickets if that's relevant for you or gifts. Takeaway three, choose your big swings. You got to prioritize. Think about what's most important to you this holiday season. And takeaway four, choose what you're going to do cheaper, later, or not at all. Just because it's important to somebody else doesn't mean it has to be a priority for you. And your budget may be tighter than somebody else's.

That's okay. Just know what you're working with. And remember that some of the things we think we have to do in December, we can actually do any other time, including January and February, which, from what I recall, tend to be pretty bleak. Don't you think we could use a little sparkle? All right, that's our show. Before we go, do you ever?

find yourself saying to a friend, you know, I heard on Life Kit. First of all, thank you for talking us up. And second, would you want to tell another friend about us? Go ahead. Send them an episode now. And thank you. This episode of Life Kit was produced by Margaret Serino. Our digital editor is Malika Garib and our visuals editor is C.J. Rekyllan. Megan Kane is our senior supervising editor, and Lauren Gonzalez is our executive producer. Our production team also includes Andy Tagle, Claire Marie Schneider and Sylvie Douglas. Engineering support comes from Tiffany Verac Castro. Fact-checking by Will Chase. I'm Mariel Segarra. Thanks for listening.