Mindful money moves for holiday spending

The holidays are a bit like glitter: magical, sparkly and shows up everywhere you look. Glitter clings to everything long after the party is over, just like those credit card charges that stick around after the gifts have been unwrapped. But if you’ve ever found yourself staring at a credit card bill in January wondering how it got so high, you’re not alone. In fact, 36% of Americans took on holiday debt last year averaging $1,181, and nearly half of them didn’t plan to charge up that amount.

That's a lot of financial hangover to carry into the new year.

But here’s the good news: it doesn’t have to be that way. Here are six thoughtful ways to spend with intention—and maybe even feel good doing it.

Set a holiday spending plan that feels like a cozy sweater, not a tight turtleneck.

Before diving into gift lists and party planning, take a breath and sketch out a holiday spending plan. Think of it as your seasonal compass. Include everything: gifts, travel, food, decorations and even shipping costs.

According to NerdWallet, the average holiday shopper plans to spend $1,107 on gifts alone this year. That’s an increase of nearly $200 from last year, thanks in part to inflation and tariffs. But here’s the kicker, saving money during the holidays doesn’t just help your wallet. It boosts your wellbeing. Studies show that people who save intentionally during the holidays report lower levels of stress, better sleep and more satisfaction with their purchases.

So, whether your budget is $100 or $1,000, make sure it’s something you can stick to without sacrificing your January peace of mind.

Understand how your "money feelings" affect your spending choices.

Holiday spending isn’t just about numbers. It’s about emotions. Psychology Today calls this emotional baggage we carry from past experiences “money wounds,” and they come from all sorts of patterns like family dynamics or societal pressure.

Maybe we feel like we need to buy the perfect gift to prove our love, or maybe we’re trying to recreate a childhood holiday that never quite happened. Maybe we feel driven to outdo ourselves, to make this year better than last year. Perhaps we don’t feel great and we’re counting on making memories that will somehow replace the stress we’re under. These feelings are valid but they don’t have to drive spending choices.

Take a moment to reflect: What does money mean to you during the holidays? What are your highest priorities for the moment, the season and the year? Then check your holiday spending plan against your long-term financial goals. Sometimes, a heartfelt note or shared experience is just as valuable as a pricey present.

Give a gift that gives back.

One of the most beautiful ways to celebrate the season is by giving to others, especially those you may never meet. Consider making a charitable donation in someone’s name, like purchasing a star or planting a tree. It’s thoughtful, clutter-free and deeply meaningful. Choose a cause your recipient cares about like a local food bank, a wildlife rescue or an organization that supports mental health. Wrap up a card explaining the gift, and you’ve just given something that ripples outward.

And you won’t be alone. 71% of Americans are expected to donate to charity by year’s end, with many giving more in November and December than the rest of the year combined. Gifts like this don’t just give back to the community, either. The gift comes back to you. If your gift is in support of an established charity, don’t throw away that receipt. You may be able to use it as a tax deduction in the new year.

Be mindful of the emotional swipe.

The holidays can stir up a lot—joy, nostalgia, excitement and yes, sometimes stress or loneliness. It’s completely human to seek comfort in the little things, and for many of us, that might mean treating ourselves or others to something special. Emotional spending is common, especially during this season when everything feels heightened.

But if you’ve ever found yourself making a purchase that felt good in the moment but left you uneasy later, you’re not alone. That’s something many of us experience, and it’s okay. The key isn’t to judge ourselves, it’s to notice the pattern and gently ask: What am I really needing right now?

In practice, creating mindfulness and changing emotional spending habits is more straightforward than you’d think. Try this the next time you’re in the checkout line, or when you're about to complete a purchase online: Before clicking “buy,” try pausing for a breath. Ask yourself: Is this gift about connection, or am I trying to soothe something else? Sometimes, journaling or a phone call with family or friends can offer the comfort we’re truly craving.

Remember, the most meaningful connections don’t always come with a price tag. And being kind to yourself, especially during the holidays, is one of the most generous gifts you can give.

Use credit cards intentionally and responsibly.

Credit cards can be a helpful tool during the holidays, offering convenience, fraud protection and even rewards like 2% cash back or travel points. Many cards, including Credit Human’s credit card options, also provide purchase protection, extended warranties and perks that can make holiday shopping smoother and safer.

But like any tool, it’s all about how you use it.

While 65% of holiday debt is charged to credit cards, and many carry interest rates over 20%, you don’t have to end up in the red. The key is to use your card strategically and mindfully.

Here are a few tips to help you make the most of your credit card without causing stress in the long term:

• Stick to your spending plan
  While you’re taking that breath we talked about earlier, check in with yourself. Is this purchase part of your holiday spending plan? If not, pause and reassess.
• Pay it off right away
  If possible, pay off your credit card balance immediately after each purchase. This helps you avoid interest and keeps your spending in check.
• Use alerts and apps
  Set up spending notifications or use the financial health tools in digital banking to track your purchases in real time.
• Choose rewards wisely
  If your card offers cash back or reward points, use them to offset future expenses or treat yourself to something small without extra spending.

Using credit cards doesn’t have to mean going into debt. With a little planning and self-awareness, they can be a secure way to shop and even help you stretch your holiday budget a little further.

Celebrate what matters most.

Here’s a radical idea: what if the holidays weren’t about stuff at all?

According to PwC’s 2025 Holiday Outlook, 84% of consumers plan to cut back on spending this season, not because they’re less festive, but because they’re reevaluating priorities. Many are shifting focus from material gifts to experiences, values and personal well-being.

The holidays can be about meaning, connection and honoring what truly matters—whether that’s quality time with loved ones, quiet reflection or simply giving yourself permission to rest. For some, it’s a time to recharge, reflect or create new traditions that feel nourishing.

So maybe this year, it’s less about the physical gift and more about the gifts that bring you peace, joy and a sense of belonging—whether that’s with others or within yourself.

This year, lets spend light and feel bright.

The holidays can be magical, even glittery, but they don’t have to be expensive. By spending mindfully, giving with heart and tuning into what really matters, we can create a season that feels rich in connection, not just consumption.

So go ahead. Light the candles, bake some cookies, write some cards. And if you need help navigating your finances, Credit Human’s Financial Health Centers are here for you. We offer free support and can help you build a plan that works for your life. Cheers to a holiday season that feels less like a sprint and more like a stroll through the lights. One where you give with joy, spend with care and maybe even find a little magic in the quiet moments.

Before you go: Tips for navigating holiday deals and ways to give during the holidays without breaking the bank.