5 Smart Money Moves Gen Z Needs To Make Before the Holidays Hit

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The holidays hit different when you’re just starting your career. Between student loans, entry-level salaries and the pressure to keep up on social media, Gen Z faces unique money challenges that make holiday spending especially tricky. You’re already dealing with inflation, sky-high rent and trying to build financial independence from scratch. The last thing you need is holiday debt that follows you into the new year.

But with some strategic moves, you can enjoy the season without sacrificing your financial future. Here are five money moves Gen Z should make before holiday spending begins.

Set a Reality-Based Holiday Budget (Not a Fantasy One)

The biggest mistake is setting a holiday budget based on what you wish you could spend rather than what you can actually afford. When you’re making $35,000-$50,000 annually, every dollar counts.

Start with your actual take-home pay and subtract all your fixed expenses: rent, student loans, car payments, subscriptions and basic living costs. Whatever’s left is your discretionary spending for the entire month, not just holidays.

A realistic approach might mean spending $200-$400 total on holiday gifts, travel and entertainment instead of the $800+ that social media makes seem normal. Use apps like Mint, YNAB or even a simple spreadsheet to track exactly where your money goes. Seeing the numbers makes it easier to stick to realistic limits when holiday FOMO kicks in.

Start a Last-Minute Holiday Fund (Even If It’s Small)

Most financial advice says to start saving for holidays in January, but that doesn’t help when you’re reading this late in the year. The good news is that even small amounts add up when you’re creative about finding them.

Look for money you can redirect for the next few weeks. Skip dining out twice a week and cook at home — that’s easily $60-$80 weekly. Cancel one subscription you barely use for $10-$15 monthly. Sell items you don’t need on Facebook Marketplace, Depop or Poshmark.

And finally, set up automatic transfers for any amount you can manage. That money won’t feel like much in the moment but will majorly add up before the holidays.

Use Technology To Avoid Impulse Spending

Your phone can either enable overspending or help prevent it. Set up tools that work with your digital-native habits rather than against them.

Enable spending notifications on your banking apps and credit cards. Get alerts when you’re approaching budget limits or when specific types of purchases are made. Use apps like Honey or Capital One Shopping to automatically find coupon codes and compare prices before buying anything online. These tools can save 10%-20% on purchases you’re already making.

Set up separate accounts for holiday spending if possible. Many banks allow multiple savings accounts with automatic transfers. When the holiday account hits zero, you’re done spending. Put a 24-48 hour waiting period on all nonessential purchases over $25. Add items to your cart but don’t check out immediately. Most of the time, the urge to buy passes once you sleep on it.

And perhaps most importantly of all, unfollow social media accounts that promote excessive spending or materialism. Follow accounts focused on budgeting, DIY gifts or affordable holiday ideas instead. This will train your algorithm in what you like and you won’t be inundated with constant pleas to spend.

Protect Yourself From Holiday Debt Traps

Credit cards make holiday overspending dangerously easy, especially when you’re already managing student loans and other debts. The key is creating barriers that prevent emotional spending decisions.

If you must use credit cards, choose one with the lowest limit to naturally cap your spending. Leave your other cards at home or delete them from online shopping accounts. Calculate the true cost of credit card purchases before buying. A $200 gift that you pay minimum payments on could end up costing $300+ with interest and fees. (And if you already have credit card debt, create a specific payoff plan before adding holiday purchases. Know exactly how you’ll eliminate any new balances by specific dates.)

You might also use debit cards or cash for all holiday purchases. The psychological impact of spending actual money makes you more conscious of where your cash is going.

Bonus points: Use the cash-back strategy. For every holiday purchase, transfer the same amount to savings. This forces you to consider whether you can actually afford items and helps rebuild savings depleted by holiday spending.

Side Hustle Strategically for Holiday Cash

Gen Z has more side hustle opportunities than any previous generation. Use this advantage to generate holiday money without touching your regular income.

Focus on seasonal opportunities that pay well during holidays. Food delivery services see higher demand and often offer bonuses during busy periods. Retail stores need gift wrappers, customer service help and warehouse workers.

Consider picking up extra shifts, holiday retail work or gig economy jobs specifically for holiday cash. Target, Starbucks and shipping companies often hire seasonal workers with decent hourly pay. DoorDash, Uber Eats and Instacart see higher demand during holidays.

Leverage skills you already have. If you’re good at social media, offer to manage holiday posts for local businesses. If you’re creative, sell handmade items on Etsy or at local holiday markets. Pet-sitting and house-sitting services are in high demand during holiday travel season. Apps like Rover and Care.com connect you with people who need help while they’re away.

Freelance your way to holiday cash through platforms like Upwork, Fiverr or TaskRabbit. Writing, graphic design, tutoring and virtual assistant work all see increased demand toward year-end.

The key is treating side hustle income as holiday money, not regular income. Although it’s incredibly tempting, don’t let extra earnings become an excuse to increase your baseline spending.

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