Achieve Financial Peace During the Holidays with a Practical Planning Guide

There is no shortage of gatherings, events and shopping during the holiday season. Whether or not you celebrate, it’s hard to ignore all the festivities. However, the pressure to participate in these activities can lead to financial stress.

With conflicting priorities and limited funds, adopting a structured approach to financial decision making can help reduce stress and maintain financial stability. The Why, What and How model is a valuable tool for creating a financial plan to keep your budget intact during the holiday season.

Learn more about this model and use the downloadable Holiday Spending Guide to design a practical plan that keeps you focused. Here’s how it works:

Identify your why

Start by reflecting on what the season means to you and how it aligns with your values. Document these observations so you can review them along the way. Consider how you want to feel during and after the holidays. For example, you may want to create new family memories, connect with others or feel a sense of contentment as you enter the new year. Writing down these feelings and generating "to be" statements can help keep your intentions top-of-mind amidst the chaos.

Download our Holiday Spending Guide. Click the link to download. For the best experience, use a PDF reader to complete the worksheet.

Determine your what

Next, set goals that align with your values, making them specific, measurable, attainable, relevant and time-bound (SMART). For instance, if you want to connect with others, set a goal to send a certain number of handwritten cards to distant family members by a specific date. If creating memories is your priority, allocate an amount of money and plan a special family activity for a set date in December.

Establish guidelines for managing your resources. Making commitments to yourself about spending and sticking to them can help you stay engaged with what truly matters, while keeping your financial health in check and minimizing post-holiday stress.

Define your how

Outline the tasks you need to complete to achieve your goals, along with the frequency of each task. To manage your holiday spending, start by listing potential expenses, their price ranges and how you plan to fund them. Consider potential obstacles and how you'll navigate them. For example, if you plan to send holiday cards, create a list of recipients, purchase stationery and postage, and schedule time each week to write. If you're planning a family activity, choose the activity, set aside money each pay period, communicate with your family members and make necessary reservations well in advance.

Once you’ve identified your why, what and how, it’s time to put your plan into action. Review it regularly to stay inspired—especially when you’re feeling tempted to go off course. Track your spending closely and make adjustments as needed.

The holiday season doesn't have to be a time of financial strain. By focusing on what matters most to you, setting clear goals and boundaries, and building a solid plan, you can enjoy a holiday season that's both joyful and financially responsible.

Download our Holiday Spending Guide. Click the link to download. For the best experience, use a PDF reader to complete the worksheet.