The holidays are a time for joy and generosity, not financial stress. Here, our experts offer smart strategies that break it down into key plays centered on safety, budgeting and maximizing your giving power.
Between gifts, travel, holiday parties, and requests for donations, you can sometimes find yourself spending more than you intended during the holidays. But it doesn’t have to be that way. This financial playbook offers helpful tips from some of our experts to help you get the most bang for your buck, so you can focus on making merry.
The most effective approach is to create a budget well in advance and fiercely guard it throughout the holiday shopping season. “Start by reviewing your finances and determining the total funds you have available for holiday spending. List categories of expenses, and assign dollar limits to each category based on priority,” suggests Jessica Bole, JD, CEPA, Wealth Planner at Huntington Private Bank. “Then, be sure to track your spending as you go. After the holidays, review your budget to determine what worked or what could be further refined for next year to help you stay on track.”
Bole also points out that you don’t have to spend huge amounts to give a meaningful gift that sparks joy. Holiday treats, handmade gifts or personalized cards are all thoughtful options that won’t break the bank. Most importantly, she adds, you can be generous with your time, instead of your wallet: “Dedicate time to focus on being present with your friends and family, sharing traditions and creating memories together!”
If you’ve been using your card to accrue rewards throughout the year, utilizing those cash back rewards for a statement credit is a great way to offset some of your holiday spending. Utilizing credit cards to maximize cash back also pays off later. “If your holiday plans include travel, consider using a credit card which rewards your hotel or travel perks to defray some of those additional holiday expenses,” Bole says.
Don’t have a cash back card yet? The holidays can be a great time to get one. The key is strategic alignment: Review your spending and determine the best type of card for you. “Some cards offer higher rewards based on categories of spending, such as gas, groceries, and online shopping, so choosing a card that matches your highest spending category can maximize your rewards,” Bole recommends.
Many cards also offer additional cash back offers that you may need to activate online, so you should review promotional offers regularly to ensure you’re taking advantage of those optimized rewards. Many cards offer special deals around the holidays, so make sure you check in before you go shopping or even when making a gift list.
Whatever card you choose, always be responsible with your credit card usage, says Bole. “Don’t spend more than you can afford to pay off monthly and on time to avoid costly interest or penalty charges which negate any cash back rewards.” This is equally true over the holidays.
The holiday season is a time of joy—but it’s also a time when scammers are working overtime. Be extremely cautious of fake or non-secure websites, messages about shipping from unknown senders, and “too-good-to-be-true” deals. “Fraudsters often create fake websites or ads that look like trusted retailers, offering steep discounts to lure shoppers in, while others may send phishing messages that appear to be from shipping companies or stores, prompting you to click on links that compromise your information,” warns Amber Buening, Cybersecurity Outreach Director at Huntington Bank. The best way to protect yourself, she says, is to shop only on secure websites, verify URLs carefully and avoid clicking on links from unknown sources.
Also stay aware of your surroundings and your belongings, says Buening. “If you’re heading out to shop in person, keep your wallet and phone secure, ideally in a front pocket or crossbody bag where they’re less vulnerable to theft,” she says. And when you have to enter a PIN at an ATM or checkout, make sure you cover the keypad. Even better, she adds, “use a contactless payment method which offers built-in encryption and reduces the need to physically handle your card.” Tap-to-pay from your phone is both convenient and secure.
This time of year brings a surge in charitable giving, and unfortunately, a rise in donation scams. Our advice? Always do your due diligence. “To ensure your generosity reaches the right hands, always research any organization before donating, and be wary of any urgent requests for donation, especially asking for donations via gift cards or wire transfers,” notes Buening. Trusted platforms like Charity Navigator or Give.org can help you confirm legitimacy, and a good rule of thumb is to always donate directly through the charity’s official website.
The holidays shouldn't derail your long-term financial goals, Bole advises. “Planning for holiday spending should be part of your annual financial review with your financial advisor,” she says. By factoring in a savings plan during the year to save up for big ticket items, you can avoid dipping into your long-term savings or going into debt to finance your holidays.
By adopting these strategies, you can take control of your finances this season. From all of us at Huntington Bank, we wish you a joyful, secure and financially smart holiday.
The information provided in this document is intended solely for general informational purposes and is provided with the understanding that neither Huntington, its affiliates nor any other party is engaging in rendering financial, legal, technical or other professional advice or services, or endorsing any third-party product or service. Any use of this information should be done only in consultation with a qualified and licensed professional who can take into account all relevant factors and desired outcomes in the context of the facts surrounding your particular circumstances. The information in this document was developed with reasonable care and attention. However, it is possible that some of the information is incomplete, incorrect, or inapplicable to particular circumstances or conditions. NEITHER HUNTINGTON NOR ITS AFFILIATES SHALL HAVE LIABILITY FOR ANY DAMAGES, LOSSES, COSTS OR EXPENSES (DIRECT, CONSEQUENTIAL, SPECIAL, INDIRECT OR OTHERWISE) RESULTING FROM USING, RELYING ON OR ACTING UPON INFORMATION IN THIS DOCUMENT EVEN IF HUNTINGTON AND/OR ITS AFFILIATES HAVE BEEN ADVISED OF OR FORESEEN THE POSSIBILITY OF SUCH DAMAGES, LOSSES, COSTS OR EXPENSES.
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