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5 Budgeting Tips for Holiday Shopping

How to budget for Christmas shopping

Getting into the holiday spirit might tempt you to reach for your wallet and overspend. Decorations, food, gifts and travel can add up to some serious cash. In fact, one report found that the average consumer plans to spend nearly $1,243, or a 9.7% increase from last year,1 during the 2026 holiday season. How the money is spent isn't simply on gifts. According to the JLL survey, budgets for gifts is expected to rise by 3.1%; food, decor and other goods 16%; and entertainment and personal experiences 17.3%. More than half of shoppers, 55.3%, plan to visit an enclosed mall this season, up from 49.9% in 2025. Online delivery is expected to slightly drop, from 83.9% last year to at 80% this season. 

Besides all the trends and statistics, by creating a holiday budget and using smart shopping strategies, you can score great deals, trim your spending and avoid holiday debt. And no one will ever guess you spent less.

1. Make a list and check it twice.

It's much easier to stick to a spending plan if you start out with a list. Begin by figuring out the total amount you can spend on the holidays. Then divide your expenses into categories, including food, decorations, travel and gifts. In each area, jot down the items you plan to purchase and how much you can spend on each. Then shop only from your lists. Worried you'll overspend? Consider putting your holiday cash on a prepaid card to keep spending in check.

2. Buying online? Use simple tools to save.

If you're a savvy online shopper, you know coupon codes can save you a bundle, but who has time to hunt for the best code during the hectic holidays? Use a browser extension,2 which searches for the best discount available and automatically applies it at checkout. With AI's popularity rising, it's a sector not to be ignored. According to PwC, 29% of consumers plan to use AI somewhere in their holiday shopping. That's up from 22% in 2025 when consumers said they planned to use AI, mostly to research products, compare prices and stay on budget.4

Human head with dollar sign icon
Tip: Almost 75% of consumers used a credit card to pay for gifts in 2025. To avoid debt, plan a budget and consider applying for a credit card that comes with a 0% interest introductory offer.

3. Shopping at brick-and-mortar stores? Browse online first.

Want to sniff that perfume or squeeze those fuzzy socks before you buy? Before heading to the store, use a trick known as "webrooming" — that is, going online to check product reviews, compare prices and learn about upcoming sales before buying at a brick-and-mortar store. Be aware, though, that some retailers may offer lower prices online than in the store. In that case, consider buying online and choosing free in-store pickup. The overwhelming majority (93%) of U.S. adults expect to visit a brick-and-mortar store during the holiday shopping season to purchase an item or pick up an online order, including 97% of Gen Z, according to ICSC’s 2026 Holiday Shopping Forecast.5 Sixty-eight percent say discounts, promotions and exclusive offers will encourage additional store trips. 

4. Reward yourself with bigger holiday savings.

Credit card rewards can help you save big this season. So check to see if you have unused rewards on any open credit card accounts. If you do, figure out which options are available to you for using them. If there are multiple options, spend some time calculating which option gives you the best value — converting points to cash, redeeming them for gift cards, or using them to purchase merchandise you can give as gifts. Second, use a cash-back credit card for your shopping to get an extra percentage back on all of your purchases. If you spend $1,000 on a card that gives 2% back, you save $20.

5. Use cards with your best interest in mind.

Wise credit card use is key to avoiding holiday debt. An analysis by NerdWallet's 2025 Holiday Shopping Report3 found that nearly three-quarters of 2025 holiday shoppers (74%) had planned to use credit cards for at least part of their gift shopping. According to its survey, of 2024 holiday shoppers who used credit cards, 31% had not paid off the balances.

If you won't be able to pay off your card in full when you get the bill, consider applying for a credit card that comes with a zero percent interest introductory offer. Then calculate how much you can reasonably charge and still pay off your balance before interest payments kick in.

Use these tips to celebrate the holidays without spending beyond your means. And if you'd like to get more information on how to budget or use your credit or debit cards, stop by a local branch or give us a call at 1-888-796-6887. We're happy to help this season or any time.

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Important disclosure information

  1. James D. Cook, Heli Brecailo, Keisha Virtue, "Bigger budgets, fewer names," JLL, published October 6, 2026. Accessed October 8, 2026. Back
  2. Tom Blake, "These Cashback Extensions Saved Me Hundreds," The Budget Diet, updated September 9, 2026. Accessed October 8, 2026. Back
  3. Erin El Issa, "2025 Holiday Shopping Report," NerdWallet, published October 14, 2025. Accessed October 8, 2026. Back
  4. "A season of presents and presence," JwC, published September 8, 2026. Accessed October 8, 2026. Back
  5. Zachary Russell, "ICSC: Nearly all shoppers to visit a store for holiday shopping," Chain Store Age, published October 7, 2026. Accessed October 8, 2026. Back