How Not to Go Into Debt When Celebrating a Holiday
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Look at us Gen X, the logistical backbone of the family at holidays. Now that we are in our 50s and 60s, we plan, host, cook, and bridge the gap between the older and younger generations. All of this is important, but it comes with a hefty price tag.
It is easy to go overboard getting ready to celebrate a holiday. Perhaps it is leaning into the nostalgia of the season, or just the excitement of bringing friends and family together. We all have a tendency to under plan and overspend.
Reining in the debt cycle as holidays roll around is especially important in retirement. You have less flexibility in your budget when you are on a fixed income so you really should have a plan in advance.
FAWA will cover how not to go into debt during:
Winter Holidays
Spring Holidays
Summer Holidays
Fall Holidays
This article is quite lengthy so it may be best to bookmark and come back seasonally to get tips on how to save.
Winter Holidays
Christmas spending pushes over a third of Americans into the red every year. Recent data shows that borrowers take on an average of $1223 in holiday specific debt using credit cards and ‘Buy Now, Pay Later’ programs that give you a specific amount of time to pay off the charges before accruing interest. Many carry this debt for months. Nearly 30% of consumers who use credit cards for holiday shopping are still carrying balances from those purchases a year later.
Even if times are tough and money is tight, no one wants to see their family have a rough holiday with few gifts. But ask yourself two questions. 1. What did you get for Christmas last year? 2. What did you do for Christmas last year? There may be one or two memorable gifts that come to mind. But you will absolutely remember what you did and who you were with last Christmas. The point is the most lasting memories that we have are the events and the time that was spent together rather than the material things.
To avoid going into debt this winter holiday season, consider these actionable steps toward not spending as much:
Create a realistic, category-by-category budget accounting for all holiday-related expenses, not just gifts: travel, decorations, events, greeting cards, wrapping paper, clothing, increased grocery bills for all of those treasured family recipes.
Consider one or two wow-factor gifts for each kiddo that will take their breath away. If you purchase more than two, they can be cheaper or useful items.
Some families use the Want, Need, Wear, Read strategy. One present the child really wants, something they need, a clothing item/shoes, and a book.
Avoid buying gifts for every extended member of your family. Consider baking, homemade gifts, photo ornaments, or doing a Secret Santa or ‘kids-only’ gift rule. Some family get-togethers focus on a white elephant gift exchange game with a monetary limit like $20. Now you have entertainment and laughs scheduled in with a budget limit.
Is Santa still in the scene somewhere? Limit the Santa gift to one, with a filled stocking.
Avoid the trend of matching pajamas for the whole family, including the dog. They will be worn only a few times at most.
At the beginning of the ‘Ber’ months (September, October, November, December), try to set aside some cash each month for Christmas spending. It will take some of the financial pain away by having a small cushion to work with. It’s a new take on the old Christmas Club accounts.
Buy non-perishable Christmas stocking fillers year-round. When you see something small that is a good deal and reminds you of a family member, pick it up! You can stash them away on a closet shelf. When it is closer to Christmas, you only have to add perishable food items or Christmas theme items that won’t be available until closer to the season. (Bonus list at the end of ideas you can stash away!)
Strictly use cash or a debit card for all holiday purchases, establish a clear, fixed spending limit per person, and communicate early with family about setting budget caps or organizing gift swaps.
Keep a running tally of exactly how much you have spent against your limit.
Ignore flashy, artificial scarcity sales, and mute or unfollow social media accounts that trigger the urge to spend.
Avoid self-gifting: Be careful not to pick up treats for yourself while shopping for others.
New Year’s Eve is another holiday to be mindful of. Instead of buying a new, flashy outfit every year that you wear for just one evening, consider searching for a less expensive statement scarf or sweater that you can pair with clothing you already own. Great items can be found at thrift stores throughout the year or found at steep discounts in store right at the beginning of January.
If you decide to spend the evening with Ryan Seacrest instead of going out altogether, your budget will thank you. Buy a bottle of champagne and plan to cook a special meal at home instead of braving icy roads, drunk drivers, and overcrowded bars and restaurants.
Superbowl Sunday is a holiday, isn’t it? If you are hosting a get together at your house, consider making it a BYOB potluck. That way the entirety of the expensive food and drink bill is not on your shoulders. A few great menu ideas for you to consider making as the host include:
Chili - It is healthier than a lot of other Superbowl foods (wings, pizza), is a cheaper alternative, and can be presented as a cozy build-your-own food bar with separate smaller bowls of sour cream, grated cheese, chopped onions, jalapenos, chopped tomatoes, etc.
Nachos - This is another great option that really stretches out expensive meat. You can bake off pans of tortilla chips with melted cheese and seasoned meat. Then using the same concept as above, have guests choose their own toppings.
Mac ‘N Cheese Bowls - Pull out your most decadent macaroni and cheese recipe and make it in large quantities. Then give guests the option of what they want it topped with: pulled pork, brisket, lobster/shrimp, barbeque chicken. This concept started at restaurants to help fill people up while stretching out the expensive protein toppers.
The average person spends around $200 on Valentine’s Day these days. Did you know that Generation X only spends an average of $95 to $160? We generally opt for more practical, experience-based gifts like dining out rather than buying expensive jewelry. Valentine’s Day is a hard one to save on as the classic gifts of a heart-shaped box of chocolates and flowers can’t be purchased on sale or too far in advance. Here are some ideas to still make the day special and not break the bank:
Consider buying premium cuts of meat (steak, shrimp/lobster) and eating better at home than you could in a restaurant.
Some couples choose to celebrate Valentine’s Day the weekend prior to February 14. You avoid the crowds and peak pricing by celebrating on an entirely different day.
If the day isn’t the same without flowers, look at purchasing online from Costco or Sam’s Club for delivery to your home. That way you avoid paying the middleman.
Focus on an experience rather than gifts. The same concept applies as explained previously. You may not be able to remember what you received last Valentine’s Day, but you certainly remember who you spent it with and what you did. You can opt for a concert, a play, a road trip somewhere nearby, spending time together enjoying a winter sport, etc.
Spring Holidays
Gen X, along with Millennials and Gen Z, are amongst the heaviest celebrators of St. Patrick's Day. Our spending is at $40-50 and is mainly on food, specialty drinks, and clothing. You can have a great time and limit your spending by:
Organizing a potluck and ask each guest to bring an Irish-inspired dish, side, or dessert to keep costs low.
Keep the event BYOB so you don’t spend a fortune at the liquor store.
Use the green colored clothing you already own. If you want to dress it up, search for inexpensive pins, hats, necklaces, etc. from a previous year. No one will remember that you wore the same thing last year.
Purchase plates and decorations when they are on sale right before or after St. Patrick’s Day. Any clearance sale items can be tucked away for use the following year.
If you plan to go out to a bar, time your visit with happy hour specials or enjoy the first round at home before you head out to socialize with a designated sober driver.
Gen X, along with Millennials, are the highest spenders at Easter laying out almost $200 per person. It may seem that total is overstated but we are planting flowers, decorating the inside of our homes, filling Easter baskets, buying new clothing, hosting an egg hunt, and having a decadent Easter meal. To trim your budget without sacrificing tradition, consider these savings tips:
Skip buying a new holiday outfit; you can save by shopping your closet instead. If you feel slighted, try to buy just one new thing for your outfit: a new hat, a new pin, a new scarf.
Reuse treasured in-home decorations and resist the urge to buy more every year. Some shoppers use the 1-in-1-out strategy. You buy a new decoration only when one breaks or is too worn for display.
Save your baskets, plastic Easter grass, and plastic eggs from year to year. They can be stored in a large tub container in the attic right alongside your other holiday decorations. Dollar stores are great places to buy replacements if you need them.
Ham, eggs, and produce are the biggest food expenses on the Easter menu. Check out FAWA’s guide on saving money on groceries.
Dining out for Easter brunch can be very expensive. Try to get different family members to rotate Easter potluck hosting responsibilities instead. Have everyone commit to bringing a specialty dish that it just wouldn’t be Easter without (ie. scalloped potatoes, mac and cheese, green bean casserole, deviled eggs).
Avoid expensive pre-made Easter baskets and fill your own with small toys, egg-shaped chalk, bubble wands, etc. Shop clearance sales right after Easter and tuck away any cute egg fillers you may find alongside your decorations for use next year. This includes the egg dye kits that are too pricey before the holiday and $1 after it.
Fill eggs with fun size candy purchased on sale in the month or two leading up to Easter. The kids won’t care if it doesn’t have pastel colors on it. You can fill eggs with things other than candy: Easter jokes printed out, hair accessories, coins, Matchbox cars, etc.
Have you heard about adult Easter egg hunts? They are filled with lottery tickets, small bottles of spirits, and $1 and $5 dollar bills. Every adult gets a cap on the number of eggs they collect (ie. 3-5 eggs) and it is a hoot to watch everyone open them together. Who says Easter is just for kids?
Summer
You would think the summer holidays would be fairly tame as far as spending goes, but you would be wrong. Mother's Day spending is set to hit a record $38 billion in 2026, with shoppers expected to spend an average of $284 per person on gifts and celebrations. Consumers in the U.S. were projected to spend a record $27.9 billion total on Father's Day, averaging $226.58 per person.
Most Gen X have parents that are elderly or have already passed. If you are purchasing for your parents, know that a special meal, a card, and a small gift (or flowers) are all that are really expected. Mother’s Day has higher spending in restaurants as everyone tries to give Mom a break from the kitchen; almost 1 in 3 adults dine out on that day. Father’s Day has more grilling at home but the menu often includes pricey cuts of meat so there is a tradeoff there. Popular Father’s Day gifts include greeting cards, clothing, special outings (experiences), and personal care items.
The best advice FAWA can give has already been stated above.
For Father’s Day, consider buying premium cuts of meat (steak, shrimp/lobster) and eating better at home than you could in a restaurant.
If it is hard fo you to not celebrate Mother’s Day with a meal out, research different restaurants in advance. Some may offer holiday specials or a free dessert for Mom’s special day. If you know your bill will be large, try to save a bit or side hustle a month or so in advance so you don’t just put it on a credit card.
If the day isn’t the same without flowers, look at purchasing online from Costco or Sam’s Club for delivery to your home. That way you avoid paying the middleman.
Focus on the time spent together rather than what you buy. Sometimes the best gift you can give your parents is just sitting together and reminiscing about the good old days.
For the summer patriotic holidays (Memorial Day, Fourth of July, Labor Day), shop sales and keep your spending within a pre-determined budget.
Fall
Halloween ranks as the second largest commercial holiday in the United States by consumer spending, trailing only Christmas. The spending generally lands in three primary categories: costumes, decorations, and candy. Gen X spends less on Halloween than Millennials and Gen Z by far, only an average of $188.
Our spending is less on costumes and more on decorations and candy. Chocolate and cocoa prices have increased recently due to inflation. Despite this additional cost, Gen X households are candy loyalists. Classic Halloween traditions are so important to us, we are more likely to purchase major candy brands than younger generations even as costs escalate.
What are our generation’s favorites?
First place: Reese's Peanut Butter Cups
Second place: Snickers
Third place: Kit Kat
Fourth place: Milky Way
Fifth place: Almond Joy
In addition, 58% of us still enjoy candy corn which is a candy that can be a bit polarizing. We also reminisce about Brach’s wrapped caramels, Smarties, Bit-O-Honey, and the ever popular Wowee Wax Whistles (which are making a comeback!)
Nostalgia is important to us so load up on your favorites to pass out. Consider buying candy in bulk at Costco or Sam’s Club. A 90-piece bag of all of the assorted favorites listed above will set you back $24. Depending on how busy the trick-or-treaters are in your neighborhood, 1-3 bags should see you through the night.
If you are tempted to buy extravagant lawn decorations, shop for them at clearance sales after Halloween or keep an eye out for secondhand decor locally on sites like Facebook Marketplace or Craigslist.
Almost 81% of Gen X report having a very positive association with Thanksgiving. It strikes a nice middle ground for us— it is lower stress, low-commercial, and skips elaborate decorating and gift giving. And who doesn’t like a good meal, pie, a parade, and some football?
We most likely are hosting the event at our homes. We are the bridge between the older generations, that no longer have the energy for heavy cooking, and the younger generations, that are still learning about family traditions.
Check out the FAWA page on how to save on groceries. Make sure to comparison shop store deals. Watch for early grocery promotions on baking staples, butter, and frozen turkeys, which typically drop in price weeks before the holiday. The grocery business is cutthroat right around Thanksgiving so take advantage of it.
Some grocery retailers offer holiday meal kits and discounted bundles that price out a basic dinner for a group at a lower flat rate. You can then add your family’s special traditional sides to it.
Hosting a full Thanksgiving meal can be very expensive. Consider having everyone commit to bringing a side dish that it just wouldn’t be Thanksgiving without (ie. scalloped potatoes, mac and cheese, green bean casserole, pumpkin pie, rolls). Then as the host you can focus on the turkey, stuffing, and gravy. This is much less expensive than footing the entire bill yourself.
If an open bar is part of your festivities, ask guests to BYOB to help keep costs down.
Think about trimming duplicate dishes, like sweet potatoes and mashed potatoes, or low-demand menu items that frequently go uneaten.
No matter what changes you make, remember that Gen X is pragmatic, often managing grocery shopping with less rigid planning, making last-minute store runs, or keeping things functional rather than dramatic. You’ve got this.
Not enough funds to get it all done? Start some of the strategies in the side hustle/gig section of the FAWA under Make Money Beyond 50 a month or so in advance.
