Budgeting for the holidays

To make sure your loved ones all have the perfect gift, you might make a list and check it twice. You can do the same with your spending by budgeting for the holidays. With a thoughtful strategy in place for both the people on your list and your bank account, it’s easier to manage your spending. 

Consumers budgeted an average of $890 to spend on gifts and other seasonal products during the 2025 holiday season, according to the National Retail Federation.¹

• Be honest with yourself about how much you normally spend during the holidays and whether that trend is reasonable for this year.
• Plan for what you’ll buy and stick to it. If you snag a great deal, adjust your budget so you’re not going over your planned spending limit.
• Save for the holidays throughout the year instead of trying to make all your purchases at once.
• Plan ahead for how much you want to spend and take advantage of Black Friday and Cyber Monday deals. 

No matter what you’re able to set aside for holiday shopping, you can lower your stress, avoid taking on unexpected expenses, and focus on enjoying the festivities with a practical holiday budget in place.

When you create a game plan for your holiday shopping, you can check items off your list without unnecessary financial stress.

Review past holiday spending

Every budget needs a baseline. Start by determining how much you spent last year. If you feel like you spent too much last year on gifts, events, travel, or other holiday expenses, look for areas to cut back. If you’re satisfied with your past spending, then set that as your baseline and stick to it this year.

Either way, review your past holiday spending using your bank accounts, credit cards, or budgeting apps to help guide your planning. Select last year’s holiday season as the date range, then isolate how much you spent on holiday-related purchases. Pay attention to categories like gifts, food, decorations, travel, and entertainment.

While most financial apps can automatically categorize purchases, you may find it helpful to download an additional budgeting app to your smartphone if you’re not already using one. No matter how you review your past spending, it’s the first step in making an effective and detailed holiday spending plan.

Make a detailed holiday shopping plan

Once you understand last year’s expenses, it’s time to focus on this year. As early as possible, create a plan for the holidays. The sooner you make a forward-looking budget, the sooner you can get excited about your plans without added stress about spending.

You can follow a step-by-step approach to making a holiday spending plan:

1. List and categorize all potential holiday expenses. Start by making a list of everything you might buy during the holidays. 

• Gifts. First, decide who you want to buy gifts for and what you may want to give them. Don’t forget co-workers, Secret Santa, and any last-minute gifts. 
• Wrapping supplies. Paper, boxes, bows, labels, tape, and so on. Pro tip: Stock up early because the good paper tends to sell out fast during sales.
• Decorations. Do you need a new tree or ornaments? If you’re going to jazz up your home for guests, plan ahead instead of buying decorations on the go, as those costs can really add up. 
• Shipping. Shipping costs have gone up. Note the cost of your preferred shipping method and plan to ship early to avoid higher shipping rates.
• Travel. Holiday travel often has blackout days for deals. To save money while traveling, consider all of your options and costs. 
• Entertainment. Include food for hosting meals and holiday parties, tickets to special holiday events, and any accessories—like a new outfit—in your budget.

2. Set yourself up for deals. Brands usually start promoting holiday deals early, especially for those shopping online. Sign up for newsletters and alerts so you know what the deals will be and when they’ll be active. If you’re eyeing concert tickets, join the artist’s fan club for presales and discounts. And to make sure you don’t miss out, set a reminder on your smartphone to alert you before the sale goes live.

If you want new tech, pay special attention. Tech—smartphones, accessories, and TVs—is often one of the hottest gifts during the holidays. Pay attention to brands that are loyal to you.

3. Set spending limits. Even if you’re scoring deals, you can easily overspend if you don’t stick to your plan. Prioritize what’s most important to you. With an understanding of your potential costs, you can set a “mini-budget” for each category.

For example, you might earmark $1,000 for gifts and another $250 for entertainment. Be optimistic yet realistic about your spending limits. Use last year’s numbers as a guide, then tack on a little more for flexibility and inflation. Try an inflation calculator to help with the math.

Having a detailed plan helps you think more critically about each purchase and makes coordinating your finances easier.

Creating the holiday budget is the easy part. But staying within it? That’s where the challenge begins, but you can set yourself up for holiday success in several ways.

Spread out your gift purchasing

Waiting for Black Friday and Cyber Monday deals can save you a lot, but there’s no guarantee your must-have gifts will be on sale—or even in stock. Instead, buy your gifts at different times. Spread out your non-electronic purchases throughout the year, and save big on Cyber Monday and Black Friday for electronics. Buying one or two gifts each month makes holiday expenses more manageable, especially if you’re buying a lot of gifts for tech fans.

Being flexible with your gift shopping can also save you money. For example, if you’re wondering how to give a phone as a gift without overspending, search for deals early. Once new smartphones are released, you might find discounts on older models and other offers. 

If you buy gifts early, the only downside is that you have less time to save for them. That’s why having a holiday savings plan is just as vital as having a holiday spending plan.

Start saving for your holiday gifts early

Instead of waiting until summer or fall, why not start saving for the holidays at the beginning of the year? Setting aside a little extra cash each month can make the end of the year much easier on your wallet. And saving early doesn’t mean spending less on your loved ones—it just means being prepared.

Because saving money is often easier said than done, start implementing a few holiday budgeting tips as soon as possible. For example, cut back on non-essentials. Whenever you’re tempted to splurge, put that same amount into your holiday savings instead. Also, consider setting up automated transfers into your holiday savings each pay period. Even $50 per paycheck can add up quickly and set you up for financial success this season. You can also talk to a financial consultant about setting up a holiday fund that can earn interest. 

Whichever savings advice speaks to you, start small. Save a little each month, and by the holidays, you’ll have more wiggle room in your budget. Saving consistently can also help you stay disciplined. 

Consider creative and cost-effective options for holiday giving

If you find that your budget is tight, you can still give thoughtful gifts—it just takes a little creativity. And remember, you don’t have to spend the same amount on everyone. While you may want to give your children the gift they’ve been hoping for all year, consider making ornaments or baked goods for others as gifts. Did you take a trip with someone and snap some great photos with your phone? Print them out and give an inexpensive photo album as a gift. 

There are endless ways to turn your passions into gifts you won’t find in any holiday gift guide. And activities like White Elephant or Secret Santa are just as fun as individual gift-giving. Plus, they let you spend less because there’s usually a low spending limit and you only have to buy one gift for the group. And don’t forget about regifting! What you don’t love, someone else might. 

By pairing these cost-effective holiday gift ideas with other money-saving tips, you can meet your holiday budgeting goals. Budgeting may not be the most exciting part of the holidays, but think of it as an investment in your holiday cheer. 

Also, existing AT&T customers get the same great deals as new customers. The holidays are a great time to take advantage of tech deals and save money through the AT&T app, our deals online, or at your local AT&T store.

When it comes to budgeting for the holidays, plan ahead, spend wisely, and look out for holiday offers. We have great deals on smartphones, tablets, accessories, and much more. A thoughtful budget means you can celebrate your favorite traditions and still enjoy the season.

Connecting changes everything, and we’re here to help keep you connected.

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¹ National Retail Federation. “Winter Holidays Data and Trends.” Accessed September 24, 2026. https://nrf.com/research-insights/holiday-data-and-trends/winter-holidays.

Updated by Zoya Cochran on Oct 9, 2026.