7 Simple Ways to Reduce Holiday Stress and Save Money

The holidays are a time for joy, connection, and celebration, but can also bring added financial pressure and emotional stress. With high expectations for gift-giving, hosting, and traveling, it's easy to feel overwhelmed. The good news? A little planning and a thoughtful approach can go a long way toward creating a more meaningful and financially manageable holiday.

Here are some helpful ways to reduce stress and make the most of the season without overspending.

1. Rediscover What the Holidays Mean to You

Before making your list (and checking it twice), reflect on what truly brings you joy this time of year. Given that the holidays are a short period of time, how would you prefer to spend those days? Is it through shopping and gift-giving, or does quality time with loved ones mean more to you?

Volunteering, celebrating quite traditions, or sharing meals with loved ones may be what brightens your spirit. By identifying what you value about the holidays, you can focus your time and budget on what matters most to you, easing the pressure to spend a lot on things that don’t.

2. Create a Budget That Works for You

A holiday budget is essential during such a busy season. Start by reviewing your finances and setting realistic spending limits for gifts, food, décor, and travel. Don’t forget to factor in the extras like postage, wrapping supplies, or holiday cards. A budgeting app or spreadsheet can help you track expenses and feel more in control.

When it comes to your budget, the key is to remain disciplined. Here are six tips you can follow to be a smart shopper this holiday season. Or if you’re looking for a boost this holiday season, consider our Holiday Loan offering. From now through December 31, you can apply to borrow up to $1,200 for 12 months at 15.95% APR.* Learn more here.

3. Rethink Gift-Giving

Gifts don’t have to be expensive to be meaningful. Think back to what matters the most about the holidays to you. If this is gift-giving, consider something thoughtful or practical when it comes to those on your shopping list. Or if your priority is quality time, explore an outing that your whole family or friends can participate in.

For gifts, you can also consider DIY presents like baked goods or crafts. A family Secret Santa can also reduce the financial load. If you’re buying gifts for many people, start early and shop with intention. Look for sales, use promo codes, explore holiday shopping on days like Black Friday and Cyber Monday, and consider secondhand or locally made items whenever possible.

If you’re a member of American Heritage, don’t forget about the discounts you can take advantage of! These gifts can allow you to save some money and spend quality time with loved ones.

You can purchase discounted tickets to select Philadelphia Flyers or 76ers games this season, or see a show at Arden Theatre Co. There is also a discount for tickets to the Philadelphia Zoo. Explore more member benefits here.

4. Focus on Experience, Not Expenses

Lasting memories come from time spent together, not money spent. Think about planning a movie night, baking cookies, walking to see holiday lights, or attending a local concert or fair. These shared experiences are often more meaningful and affordable than material gifts.

If you’re looking for a festive and free event this holiday season, Grand Illumination at American Heritage may be a perfect option! Enjoy this month-long event through New Year’s Day, where American Heritage’s Carriage House branch in Northeast Philadelphia is illuminated with more than 400,000 lights and two 40-foot trees. Learn more about Grand Illumination here.

5. Give Yourself Permission to Say No

Setting boundaries regarding your time and money during the holidays is OK. If a party, event, or tradition feels too taxing, financially or emotionally, declining or suggesting a simpler alternative is acceptable. There’s no gift or holiday party that is worth more than your own mental health and well-being. Protecting your energy and resources can help you enjoy the season more fully.

6. Talk Openly with Loved Ones

Clear, thoughtful conversations can ease tension and promote understanding. If you’re changing your holiday habits this year – such as spending less, giving differently, or scaling back – consider letting friends and family know ahead of time. Most people will appreciate your honesty, and it may inspire others to rethink their approaches.

In your conversations, be sure to let your family know that you are following your heart and what is best for you this holiday season. By being transparent and honest, you may be more likely to receive a more understanding and caring response.

7. Start Planning for Next Year

A little preparation now can make next year’s holiday season smoother. Consider opening a separate savings account for holiday expenses and adding small amounts throughout the year. You could also jot down ideas for gifts, traditions, or low-cost activities while they’re fresh in your mind.

From all of us here at American Heritage Credit Union, we wish you and your families a peaceful and joyous holiday season.

*Annual Percentage Rate (APR): Rates for this product are determined by an evaluation of applicant credit. Sample Monthly Payment: $106.62 for every $1,200 borrowed at 15.95% APR for 12 months. Rates effective as of 10/28/25. Offer valid on loan applications received through 12/31/25. Your payment may vary, approval is subject to creditworthiness and other factors, and requires active direct deposit to an American Heritage account. All rates and promotions are subject to change without notice.