Five steps to save for the holidays as 12 weeks remain

With just 12 weeks until Christmas, a window to build a holiday savings cushion is closing. Andrea Woroch, a consumer finance and savings expert, told Daily Mail five steps to start now to prepare for the season.

Holiday spending last year rose higher than in many recent seasons. The National Retail Federation estimated that the average per-person spend exceeded $900, with about $641 typically going to gifts and the rest on decorations, food and other seasonal items. Total holiday spending reached $994.1 billion, up about 4% from 2023, the NRF reported. Financial strain during the season also weighs on households: a 2023 American Psychological Association poll found 89% of respondents experienced heightened stress, with 58% worried about spending too much or not having enough money.

First, set a holiday budget. Woroch emphasizes creating a plan before the season begins, noting that overspending often comes from focusing only on gifts. She recommends identifying which smaller expenses you are unwilling to cut—such as extra babysitting, holiday attire, or seasonal outings—and building your budget around those items, potentially trimming gifts or travel to stay out of debt during December.

Second, transfer debt to a balance-transfer card. Woroch says this move can be realistic for many households, offering 0% interest for up to 21 months. By eliminating interest, the money paid toward debt stays with the borrower, allowing smaller monthly payments during the holidays. She adds that comparison sites like CardRates.com can help shoppers find a card that fits their situation. After the holidays, households can pursue a more aggressive repayment plan.

Third, rack up rewards for purchases. Woroch suggests using rewards programs and even opening a new card in the pre-holiday period to capture introductory bonuses. For example, some cards offer unlimited cash-back matches or bonuses after spending a set amount within a given window. She cautions shoppers to confirm spending thresholds and to avoid charging more than they can repay. She also notes that small weekly savings can grow into a sizable fund by December.

Fourth, stash away a small amount weekly. The simplest path to a holiday fund is regular contributions to a high-yield savings account, which compounds interest more than traditional accounts. Bread Savings, for instance, advertises an annual percentage yield of 4.25%. In addition, Woroch urges households to look for ways to cut monthly bills—renegotiating rates, bundling services, increasing deductibles, pausing subscriptions, and switching to lower-cost options—to free up cash for holiday spending.

Fifth, start shopping early. Early purchases can ease cash flow and reduce the impact of last-minute shopping. Woroch notes that fall sales, such as Prime Day, can yield lower prices, and that price-tracking tools like the Karma app can help shoppers monitor gifts and set sale alerts. A separate gifting tracker, Santa's Bag, can help keep gift lists organized and on budget throughout the season.

The guidance comes as retailers prepare for another year of elevated holiday demand, and as households face a higher cost of living. Experts say planning now can shorten the season's financial hangover and make January less stressful, even as consumer statistics show ongoing resilience in holiday shopping.