The holidays are one of the most emotionally charged times of the year. There is joy, but there can also be pressure. The pressure to give, to host, to travel and to make everything feel “just right”. For many Canadians, that pressure is compounded by rising living costs and the strain of stretching every dollar a little further.
What is Holiday Financial Planning About?
I have always believed financial planning isn’t about deprivation. It’s about clarity, confidence and permitting yourself to make decisions that support your well-being, not just during the holidays, but long after they’re over. With that in mind, here are some practical strategies to help you celebrate meaningfully without compromising your financial health.
1) Meaningful, Affordable Gifts Through Simple DIY
There is something very special about a gift that reflects time, care and thoughtfulness. Some of the most appreciated gifts aren’t expensive; they’re personal. I remember years ago receiving a picture from my husband, Jim, and the caption read, “The only person holding you back is you, go for it.” I am reminded of this gift every time I doubt or second-guess myself. It is deeply personal and very powerful.
Other ideas: And yes, I have either given or received all of these.
• Homemade baking or packaged hot chocolate
• A handwritten letter or memory journal
• Framed photos from moments that matter
• Simple, handmade ornaments or home decor
• Spice blends or homemade sauces.
DIY isn’t about being crafty; it is about being intentional. These gifts often carry far more emotional value than anything you’ll find at a big-box store.
2) Leveraging Cashback Credit Cards Thoughtfully
During the holidays, spending tends to increase, and that’s where a cashback credit card, used wisely, can help you stretch your budget a little further.
I often remind myself to stay within the budget I’ve set, track all my purchases, and pay off the balance to avoid interest charges.
3) Using Installment Plans Carefully
More and more retailers are offering installment options under the Buy Now, Pay Later (BNPL) banner. Please proceed with caution. These tools can support your cash flow if they’re integrated into your budget and not stacked on top of it. Not all plans are created equally. For example. PayPal’s Pay in Four permits purchases of $30. – $1,500 to be paid in four payments over six weeks. It is time-sensitive, and there are no service charges, fees, or interest charges. This can help you manage your cash flow, not hurt it.
A few considerations: while using these plans can help you manage your cash flow and strategically track all upcoming payments, please make sure nothing catches you off guard and avoid taking on multiple installment plans at once. The goal is to reduce your stress, not add to it.
4) Being Strategic With BOGO Deals
I love the idea of Buy One, Get One Free. The offers can be beneficial, especially this time of year, but only when used intentionally. This strategy can allow you to divide gifts across several recipients, build up pantry staples, possibly gift one and donate the other or even partner with a friend to reduce the cost and benefit from the savings.
5) Holiday Budget That Puts You in Control
Try not to think of holiday budgets as restrictive. They are often the exact opposite; they offer a form of freedom. Freedom from financial surprises, from guilt and some of the anxiety that can show up in January.
A simple structure might include setting realistic limits, planning menus in advance, organizing low-cost community activities, and, if you are travelling, booking earlier is better.
Holiday Financial Planning: The Bottom Line
This holiday season, my personal goal is to focus on connection over consumption. Financial confidence comes from planning. Try to set aside a small financial buffer for unplanned expenses, track your installment or credit card payments, return any unnecessary or unused purchases, and do your best to accumulate points, gift cards, and cashback rewards. Use financial tools to manage your cash flow so it works for you.
These small steps can lead to a calmer, more intentional start to the year.
