7 Financial Tips for Retirees To Make the Holidays Less Stressful
Written by
Andrea Norris
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The holidays can get downright expensive and stressful if you aren’t careful, especially if you’re on a fixed income. But the costs don’t have to strain your budget or good cheer.
If you’re retired, the following financial tips can make the difference between a stress-filled and stress-free holiday season.
Create a Realistic Holiday Budget
The American Psychological Association reported in 2023 that 58% of U.S. adults feel that holiday spending — whether it’s spending too much or not having enough money to spend — is a source of stress. However, when you shop according to a predetermined budget, you know exactly how much you have to spend and how you’ll spend it, which can help alleviate these holiday-related financial worries.
Baby boomers plan to spend $1,126 this holiday season on gifts, travel and entertainment, according to PricewaterhouseCoopers’ 2024 “Holiday Outlook” survey. Perhaps the amount you can afford isn’t as high, but you may have more holiday cheer with your smaller budget than those whose stress levels rise with each credit card swipe.
Remind Your Loved Ones That You’re on a Fixed Income
When you were still getting a paycheck from your job, your family and friends may have gotten used to what you could afford to give, from presents to hosting holiday celebrations. There’s nothing wrong with resetting people’s expectations now that you’re retired, including your own.
Plus, it probably won’t be the only occasion when you’ll need to protect your fixed-income budget. So your limited holiday budget can be a good excuse to remind your adult kids and your grandkids that your pockets aren’t as deep as when you were working.
Trim Your Gift List
Perhaps the most challenging part of cutting your holiday budget is trimming your gift list, but it’s necessary if your budget is tight. Write down everyone you usually buy gifts for and prioritize the list. Then, determine how much you can spend on each person.
Maybe your grandkids get the top spots, and your adult kids don’t make the list this year. Or perhaps you give a family gift to your adult kids’ clans rather than buying something for each family member. Make a pact with your friends to spend some quality time together over the holidays rather than spending money on one another.
Plan Your Holiday Travel Early
Unfortunately, if you need to book plane tickets to visit your family for the holidays this year, you may have already missed the window for the cheapest flights. According to Google Flights, booking in late October would get you the cheapest flights in late December. And for next year’s Thanksgiving, book flights in early October.
For this year, or to save even more next year, consider planning a January visit, when travel is cheaper and less hectic, leaving more room for other holiday expenses in your budget.
Consider Part-Time Seasonal Work To Cover Your Costs
Rather than finding extra money in your budget to cover your holiday costs, consider earning it. A lot of stores need part-time help throughout the holiday season.
You can also find seasonal job opportunities throughout the year if you prefer not to work in November and December. Take a seasonal spring or summer job and put your earnings away for next year. Just make sure you don’t earn more than Social Security’s annual limit — $22,320 in 2024 — if you’re collecting benefits and haven’t reached full retirement age yet.
Enjoy Free Holiday Activities
Most communities organize festivals, concerts and other holiday events that are free for the public. Facebook is a good source for finding them. Simply log on to the social media platform and click or tap the “Events” link to see when and where the free holiday fun is happening. Invite your local friends and family members to join you.
Volunteering as a group is another enjoyable and rewarding activity you should consider. Check your local government or sites like VolunteerMatch for opportunities.
Start Saving Now for the 2025 Holidays
You probably remember Christmas Club accounts. They were an excellent way to build a holiday fund, and some financial institutions still offer them. However, you don’t need one to save for next year’s holiday budget.
Keep a tally of this year’s holiday spending and plan to save that much over the next year. With your holiday fund in the bank, you can head into next November without worrying about how you’ll cover the costs or pay off your holiday bills come January.
More From GOBankingRates
