The holidays should bring joy. However, when every trip to the grocery store or gas station feels more expensive than the last, the season can also bring a heavy dose of stress. In 2025, 67% of Americans report living paycheck to paycheck. Even households with steady incomes are struggling to keep up with recent tariff increases, leaving little room for holiday travel, gifts, or hosting holiday gatherings.

Celebrating does not have to mean draining your savings or racking up credit card debt. With planning and budget-conscious choices – you can still enjoy traditions that matter.

1. “Over the River and Through the Woods”… on a Budget

• Skip peak travel days. If you can, avoid flying or driving on the Wednesday before Thanksgiving or the weekend before Christmas – those days see the highest ticket prices and traffic.
• Pack smarter. Extra baggage fees add up quickly. Challenge yourself to fit everything into a carry-on (bonus: no waiting at baggage claim).
• Road trip savings. Carpool with family or friends heading in the same direction. Sharing fuel and toll costs makes a big difference.
• Virtual visits. Can’t afford the trip this year? Plan a video call “holiday dinner” with family. You’ll still connect – without the fuel costs.

2. Feast Without the Financial Hangover

• Make it a potluck. Hosting does not mean you have to cook every dish. Ask guests to bring their favorite side or dessert – most people enjoy contributing.
• Choose budget-friendly dishes. Pasta bakes, chili, and casseroles feed a crowd without costing a fortune.
• Set the mood with DIY décor. A string of lights, some greenery, and candles go a long way. Pinterest has endless low-cost ideas.
• Cut back on extras. No one will notice if you skip matching napkins or pricey table centerpieces. What they will remember is the feeling of connection.

3. Gifts That Don’t Break Your Budget (or Your Spirit)

• Secret shopper or gift swaps. Instead of buying for everyone, draw names so each person gives and receives one thoughtful gift.
• Set a spending cap. Agree as a family or friend group to keep gifts under $20 or $30. It keeps things fun and fair.
• DIY presents. Baked goods, homemade candles, or framed photos are heartfelt and affordable.
• Give the gift of time. Write a “coupon” for a free babysitting night, a homemade dinner, or a weekend coffee date. These often mean more than store-bought items.

4. The Best Traditions Are Free

It’s easy to feel pressure to “keep up” during the holidays. The best memories often come from shared traditions, not expensive purchases. Watching a classic holiday movie, taking a walk to see neighborhood lights, or baking cookies together costs little to nothing.

5. Wrap Up the Year with a Plan

• Make a holiday budget. Decide how much you can afford to spend in total, then break it down into categories (travel, gifts, food).
• Track spending in real time. Use a budgeting app or your financial institution’s online tools to make sure you are staying on track.
• Start saving early for next year. Even putting $10 to $20 per paycheck into a dedicated “holiday fund” can make a huge difference by the time next November and December rolls around.

You Don’t Have to Do This Alone

The holidays can be overwhelming when you are stretched thin, but you have support. At ACFCU, we offer free one-on-one financial counseling and loans to fit your every need. GreenPath Financial Wellness also offers free financial counseling and a Debt Management Program that can lower interest rates and make monthly payments more manageable.

Source: Greenpath Financial Wellness