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How do you do the holidays justice when money is tight?

You want to make the holiday season special for your family and friends, and you may feel you need to outdo last year — or at least keep up with everyone else.

Two-thirds of shoppers in a Beyond Finance survey said they feel an unhealthy cultural pressure to buy holiday gifts when they can’t afford them. And 19% admitted they’d bought gifts or trips so they could post about them on social media.

In other words, guilt, FOMO, and Instagram can make it hard not to overspend, even when prices are high and the economy feels increasingly precarious. And yet a monthly Gallup poll showed Americans downsized their holiday gift budgets more than they ever have in the middle of the shopping season: By November they were expecting to spend $778, on average, down from $1,007 in October.

So what can you do to stay true to your budget without going full Grinch? Here are some ground rules that could help:

•  Have a holiday heart-to-heart. If you’re facing a cash crunch this season, chances are that some of the people you exchange gifts with are, too. They’ll be relieved when they see your simple group text request: “Santa’s pursestrings are a little tighter this year, so why don’t we try something a little different?”

  Be ready with suggestions like a white elephant exchange in which everyone has to buy (and receive) one meaningful price-capped gift rather than presents for everyone. Or set a spending limit for everyone at your celebration to help reduce anxiety and decision fatigue. You could also make it a kids-only gift year.

•  Cap it at four gifts. If you have kids and the Santa haul in your house has gotten out of control, adopt the viral “four gift rule.” The idea is simple: Each child gets something they want, something they need, something to wear, and something to read. (You may need it for the adults in your life, too.)

•  Set an example. Speaking of kids, it’s easy to think we’re not doing enough for them, and it’s natural to want to take them to a magical theater performance or decorate the house and yard to the nines. But what better way to model living within your means than making your reality a teachable moment.

“Let them know when they’re an adult, some years are going to be better than others,” Mary Clements Evans, a certified financial planner, told Scary Mommy. “Some years, you’re going to have more money than others. If they’re old enough, try to teach them a little bit about inflation. What happens if somebody loses a job? I don’t think you can teach kids those lessons too young.”

•  Scale the love. If you have a bunch of relatives or one big friend group on your gift list, consider putting effort into one gift that will make everyone smile — like a digital family greeting, photo collage, or special bread. (According to a recent Deloitte survey, Gen Zs and Millennials are the most likely to make their own gifts this season, including food gifts like baked goods, sauces, and charcuterie.)

•  Let tradition trump tickets. Stage shows and fancy New Year’s Eve dinners can get pricey fast. But there are other fun traditions that cost far less (or nothing), and they may end up being more memorable for you and your loved ones. Pile the family in the car with some to-go hot chocolate and look for the coolest light displays. Take everyone ice skating or sledding. Or have a holiday-themed potluck party with karaoke.

•  Stock emergency gifts to avoid last-minute expenses. When you need gifts right away, you’re at the mercy of expedited shipping costs or the prices at the only place that’s still open. If you spot a good go-to gift, grab an extra (or two) so you’ll always have something on hand for that person you accidentally left off your list.

•  Catch yourself. How did matching family pajamas, elaborate advent calendars, “brrr baskets,” and stocking stuffers pricey enough to be the actual gift infiltrate our holiday gift list? If you’re committed to scaling back, these extras could be a good place to start.

•  Ditch the guilt. You don’t have to spend what you spent in the past. If you can get by with $15 gifts for your nieces and nephews, don’t go grabbing something for an additional $10 to make up the difference. This year, take the win.

Related Reading

Learn to Recognize Holiday Spending Triggers (Take Charge America)

30 Amazing Gift Ideas That Cost Next to Nothing (Real Simple)

Are the Discounts Worth Getting That Store Credit Card? (SoFi)

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

OTM20251215SW

In a typical year, the week following the final Federal Reserve meeting of the year would mark the beginning of the holiday drift. Trading volumes would start drying up, news flow would slow to a trickle, and investors would essentially pack it in for the year.

This week, like so much of 2025, won’t be typical, though. Investors are still playing a game of catch-up with economic data, and the government will release jobs numbers and key inflation metrics for November.

Plus, now that the Fed meeting is behind us, the communications blackout period is over and Fed officials are free to publicly speak about monetary policy and their economic outlooks. We expect a meaningful amount of discussion given the range of views underlying the Fed’s latest decision to lower its benchmark interest rate. (It was a 9-3 vote, and committee members disagreed about where rates could go in 2026).

Dot Plot for 2026 Reveals Deepening Disagreement On Rates

The temptation might be to tune out and look toward the holidays, but the market has a few more hurdles to clear. Between the flood of delayed data and the slate of speeches from Fed officials, this week promises to be an eventful one.

Economic and Earnings Calendar

Monday

•  December Empire State Manufacturing Activity: The New York Fed’s survey of manufacturing executives in the region on business conditions and their outlook.

•  December NAHB Housing Market Index: This index tracks how homebuilders feel about the current and future state of the single-family housing market.

•  Fedspeak: Fed Governor Stephen Miran will participate in a moderated conversation with former Fed Vice Chair Richard Clarida at Columbia University’s Institute of Global Politics. New York Fed President John Williams will deliver keynote remarks at a New Jersey Bankers Association event.

Tuesday

•  November Employment Situation Summary: This monthly blockbuster release from the Labor Department gives a comprehensive look at employment, wages, and hours worked in the previous month.

•  October Retail Sales: This measures spending at retail stores and is a key indicator of consumer demand.

•  December New York Services Activity: The New York Fed’s survey of manufacturing executives in the region on business conditions and their outlook.

•  December S&P Global US PMIs: These indexes track how purchasing managers across different industries feel about the business environment.

•  Earnings: Lennar (LEN)

Wednesday

•  Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.

•  Fedspeak: Williams will deliver opening remarks at the regional Fed’s FX Market Structure conference. Atlanta Fed President Raphael Bostic will participate in a moderated discussion at the Gwinnett County Chamber of Commerce.

•  Earnings: General Mills (GIS), Jabil (JBL), Micron Technology (MU)

Thursday

•  November Consumer Price Index: The CPI is one of the most popular indicators for tracking consumer price trends and is a marquee release for market watchers.

•  December Philadelphia Fed Manufacturing Activity: The Philadelphia Fed’s survey of manufacturing executives in the region on business conditions and their outlook.

•  December Kansas City Fed Manufacturing Activity: The Kansas City Fed’s survey of manufacturing executives in the region on business conditions and their outlook.

Friday

•  November Existing Home Sales: Most home transactions in any given month tend to come from the existing market, and as a result set the tone for the broader housing market.

•  December University of Michigan Consumer Sentiment: How consumers feel about economic conditions affect their spending habits. This survey places a particular focus on inflation and its trajectory.

•  December Kansas City Fed Non-Manufacturing Activity: The Kansas City Fed’s survey of services executives in the region on business conditions and their outlook.

•  Earnings: Conagra Brands (CAG), Lamb Weston (LW), Paychex (PAYX)

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Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.