The holiday season is full of traditions—gathering for family meals, decorating the house, watching your favorite movies…and maybe even a little shopping?
For many people, Black Friday and Cyber Monday have become part of their Thanksgiving celebrations. Scoring a deal can feel exciting, but it’s easy for the sales buzz to lead to impulse purchases.
The good news is that with a simple plan, you can enjoy the fun of holiday shopping, take advantage of discounts, and keep your financial plan in mind for the new year.
Why Are Holiday Sales So Hard to Resist?
Stores design these sale events to create urgency—countdown clocks, “last one left” banners, and limited-time deals are meant to make you act quickly and without thinking.
ā What’s an impulse buy?
It’s when you grab something in the moment because it feels like a deal, not because you truly need or want it.
š” Tip: Before the sales start, make a list of what you actually want to buy and do a little price research. That way, when a deal pops up, you’ll know if it’s actually worth grabbing.
How Can You Set a Holiday Budget That Actually Sticks?
Setting a holiday budget before you shop can help you enjoy the season of giving and avoid regrets in January.
Here’s a simple way to build your holiday budget:
- Decide the total amount you’re comfortable spending.
- Make a list of people you’re buying for and note a dollar range for each.
- Factor in extras like wrapping supplies, shipping, and holiday meals.
- Use rewards or cash-back cards if they support your plan, but don’t let them tempt you past your limit.
š” Tip: If your family is open to it, suggest a gift exchange or set spending limits together. It helps everyone save and keeps the focus on time together.
Are Black Friday and Cyber Monday Prices Really the Best Deals?
Not always. Some stores raise prices in the fall, then “slash” them in November to make it look like a huge bargain.
ā What’s price tracking?
It’s using a website or app to see how the cost of an item has changed over time—helping you spot whether it’s really a deal.
Other things to consider before you buy:
- Compare prices across different retailers.
- Be cautious of “doorbuster” deals that lure you in, then push you toward pricier items.
š Read our blog post - How to Organize Your Finances and Declutter Your Life
How Should You Pay for Your Holiday Purchases?
How you pay matters just as much as what you buy. From cash to credit cards to installment options, each method has pros and cons.
Is Paying with Cash the Best Way to Control Holiday Spending?
Cash makes it easy to stick to your budget—when it’s gone, you’re done. It helps avoid debt and surprise bills in January. The trade-off is that cash doesn’t offer the rewards or buyer protections that some credit cards do.
š” Tip: If you like the ease of online shopping, consider using a prepaid card. It acts like cash with built-in limits.
Are Credit Cards a Smart Way to Pay for Holiday Deals?
Credit cards can be useful—if you pay them off in full. Rewards, points, and extended warranties can add value to your purchases, but interest charges on an unpaid balance can end up being more than the rewards you earned.
What Is Buy Now, Pay Later, and Should You Use It for Holiday Shopping?
Buy Now, Pay Later (BNPL) lets you get items immediately and pay for them over several smaller installments. You’ve probably seen it offered as an option when checking out online or in stores. It can make purchases feel more affordable in the moment, but if you miss a payment, you could face late fees or added interest. Juggling multiple BNPL plans at once can also make it harder to keep track of payments.
Is Buy Now, Pay Later the Same as Layaway?
Not exactly. Layaway means paying in installments first and getting the item once it is fully paid off. BNPL gives you the product upfront, then requires payments afterward.
ā Do stores still offer layaway?
Not as much as they used to. Many big retailers have replaced layaway with BNPL programs, but you may still find it at smaller or local stores, especially around the holidays.
How to Celebrate the Holidays Without Derailing Your Finances
Holiday giving doesn’t have to undo the progress you’ve made this year. With a budget in place and limits that reflect your priorities, you can enjoy the season while still keeping your finances on track for the new year.
If you’d like to explore how your day-to-day money choices align with your long-term goals, schedule a complimentary introductory meeting with us in Glastonbury or Wilton, Connecticut.
Kelsey Conklin is a CERTIFIED FINANCIAL PLANNER® professional who helps individuals and families plan for their financial future. Based in Glastonbury and Wilton, CT, she also specializes in financial planning for women, guiding her clients through divorce, widowhood, career transitions, caregiving responsibilities, retirement planning, investing, and managing longevity risks. As a female financial advisor, Kelsey is passionate about financial empowerment for women and provides personalized financial strategies designed to help women take control of their wealth with confidence and clarity. Whether you’re navigating major life changes or planning for retirement, she is committed to providing guidance tailored to your unique goals. Schedule a complimentary Women and Wealth introductory meeting with Kelsey and start building a financial plan designed for you.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation.
Prior to making an investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.