December has a way of sneaking up on your wallet. Between holiday gifts, travel, parties, and end-of-year expenses, it’s easy to overspend and deal with the consequences in January. The good news? A little planning can help you enjoy gift-giving without the financial hangover.

Here’s how to plan for holiday gifts in a way that feels thoughtful, realistic, and financially smart.

Start With a Gift List (Yes, Write It Down)

Before buying anything, make a list of everyone you plan to buy a gift for: family, friends, coworkers, teachers, or hosts.

Next to each name, set a spending range, not just a number. This gives you flexibility while still keeping boundaries in place. A plan beats impulse every time.

Set a Total Gift Budget First

Instead of deciding gift prices one by one, start with your total December gift budget.

Ask yourself:

• How much can I spend without relying on credit?

• What fits alongside my other December expenses?

• What amount won’t stress me out in January?

Once that total is set, divide it across your list.

Use Cash or Debit When Possible

Using credit can make holiday spending feel painless until the bill shows up later. Paying with cash or debit helps keep spending grounded in reality.

If you do use credit:

• Track every purchase

• Stick to your budget

• Have a plan to pay it down quickly

Consider Thoughtful Alternatives

Great gifts don’t always come with a high price tag. Some meaningful options include:

• Experiences instead of items

• Homemade or personalized gifts

• Group gifts for family members

• Setting spending limits or doing gift exchanges

Clear expectations can reduce pressure for everyone involved.

Leave Room for the Unexpected

There’s almost always an extra gift you didn’t plan for  a last-minute invite, a teacher gift, or shipping costs.

Build a small buffer into your budget so surprises don’t throw everything off.