6 Financial Do’s and Don’ts for the Holidays, According to Rachel Cruze

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While you might look forward to attending fun events and spending time with loved ones this holiday season, it’s probably a much different story for your holiday spending. A recent Thrivent survey found that half of Americans were worried about money management over the holidays, and an even larger percentage was looking to cut their expenses.

In a recent YouTube video, money expert Rachel Cruze shared her financial do’s and don’ts for the holidays. Use this advice to avoid overspending, regretting purchases and running up debt.

1. Do Make Lists

The National Retail Federation noted that the average American had an $890 budget for winter holiday items and gifts in 2025. Regardless of your budget, having gift lists and shopping lists is important for controlling your spending and knowing exactly what to buy and for whom.

Cruze explained that lists work because they help avoid decision fatigue. You’ll also find them handy for nonfinancial purposes, such as listing items to pack for your holiday trip or tracking tasks to prepare for meals and events.

2. Don’t Buy Expensive Gifts for Adults

“Adults can fund their own lives,” Cruze said. “You don’t have to buy adults Christmas presents.”

So consider prioritizing gifts for your kids and other young family members to avoid exceeding your budget. If you have some leftover cash, buying reasonably priced items for other adults would be a nice gesture, but don’t pressure yourself.

3. Do Take Part in Small Joys

Even while you’re carefully watching your spending, Cruze suggested that spending on small joys that brighten up the holidays is OK. Maybe that means enjoying a peppermint mocha or iced sugar cookie latte, buying a festively scented candle, or getting a gingerbread house kit.

Other seasonal joys don’t have to cost anything. Consider watching holiday movies, taking your family out to see Christmas lights, or making crafts or gifts using materials from home.

4. Don’t Use Debt

According to PwC’s 2025 Holiday Outlook survey, credit cards ranked second to debit cards as the most preferred payment method for holiday purchases. While many people like to charge holiday purchases now and figure out the bill later, Cruze advised against using any credit.

Instead, work your purchases into your budget, and if you’re not already doing this, start saving a little regularly to cover gifts, meals, travel and other seasonal expenses. Although you may have to reassess what you can afford, you’ll be glad to avoid the interest and payment stress.

5. Do Attend Potluck Gatherings

If you’re usually the person who cooks and hosts holiday dinners, you’re aware of all the work and costs that go into the process. You may want to consider arranging potluck gatherings, which Cruze explained allow you to be around loved ones and eat without breaking your budget.

However, you’ll need to coordinate with everybody to avoid duplicates and ensure you have the main dishes and sides covered. You can also arrange for specific people to bring items like paper plates and utensils. Cruze mentioned using a chat for the planning.

6. Don’t Buy Outfits for Every Event

Whether you’re attending a holiday party, dinner or work event, buying and showing off a new outfit can be tempting. While new clothes are fine when they fit into your budget, Cruze advised reusing some items you already have. Besides saving money, you’ll avoid cluttering up your home with new clothes and accessories you barely use.

“Open up that Instagram, type in ‘holiday outfits,’ get some inspo, get back to your closet and get an outfit,” Cruze said.

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