12 Money Traps to Avoid This Holiday Season

By Kelly Doyle

The holiday season is here, and with it, the temptation to overspend. From decorations and food to gifts and travel, it’s easy to get caught up in the frenzy of holiday spending. Instead of succumbing to the urge to splurge on expensive or unnecessary purchases, you can approach this season smarter with “The 12 Days of Avoiding Holiday Money Traps!”

Money Trap #1: Impulse buys

Impulse buys are just that – things that you buy that you haven’t put thought into it. If there is no intention behind a purchase, then it certainly won’t bring you joy by the time you get home. Instead, ask yourself: What truly brings you joy? Write down your answer and revisit it over the next month. If an event, activity, or item isn’t on your list, don’t invest your time, energy, or money in it.

Money Trap #2: Buying gifts for everyone

Is your gift list long enough to make even Santa think twice? From your brother and sister-in-law to nieces, nephews, and the cute kid down the street, it can quickly add up! Save time and money by organizing a “Secret Santa” gift exchange through a website such as Elfster. Instead of shopping for 25 people, you’ll only need to buy for one. Plus, you can encourage loved ones to create wish lists, so you can buy them exactly what they want!

Money Trap #3: Roaming Target aimlessly for gift ideas

For me, it starts in the dollar section at the front entrance of Target. I pick up a few unplanned items, and suddenly, I’m primed to shop more. Next, I add a few craft items and some beauty products to my cart. Before I know it, I’ve spent $200 without buying a single holiday gift. To avoid this trap, make a holiday shopping list and stick to it. This will help you stay laser-focused and avoid impulse buys.

Money Trap #4: Mailing last-minute holiday cards

There have been many years when I scrambled to hire a photographer, buy matching outfits for my family, and pay hefty fees to mail my cards before the holidays were over. Instead, try hiring a local photographer from a website such as Snappr, where you can find affordable freelance photographers in your area. Schedule your session in mid-November to take advantage of Black Friday deals on photo prints from Costco®, Shutterfly®, and other suppliers.

Money Trap #5: Buying expensive wrapping supplies

Instead of shopping at the nearest store down the street, buy gift wrap, tissue paper, ribbon, and other wrapping materials at your local discount shop, such as Dollar Tree®. You’ll spend just $1.25 on wrapping supplies there instead of paying a premium at other merchants.

Money Trap #6: Getting holiday groceries at the nearest store

While your local store may be convenient, it can also be expensive. Try using grocery store apps like Instacart to compare prices across stores. This allows you to find the best prices for the items on your list, so you can shop smarter.

Money Trap #7: Buying gift cards with fees

Need a gift for your kid’s teachers or maybe your yoga instructor? Avoid running to your local store at the last minute to buy that impulse card by the checkout. Instead, choose cards with no fees — or low fees — to save money.

Money Trap #8: Paying shipping charges

When shopping online, place all the gifts you plan to ship into your cart and purchase them together. Doing so allows you to minimize or avoid shipping fees. Save even more by seeking out vendors who offer free or discounted shipping on orders over a certain amount.

Money Trap #9: Opting for expedited shipping

If you do have to mail gifts yourself, prepare and ship them well ahead of the delivery date to avoid costly last-minute shipping fees.

Money Trap #10: Overpaying for peak-season flights

Since airlines often hike prices during the holidays, consider flying strategically on off-peak days and using reward miles to save. Planning around peak travel dates can help you avoid inflated holiday fares and make your budget go further.

Money Trap #11: Paying high fees to send gifts home

Traveling to see family for the holidays? Plan ahead for gift-giving without racking up pricey shipping fees to haul everything back home. Opt for small, packable presents or digital gifts to keep expenses down.

Money Trap #12: Spending money on lavish gifts

It's easy to think happiness comes from expensive gifts, but often the simplest ones are the most meaningful. Instead of overspending this holiday season, try simplifying your lifestyle. For instance, setting a $25 gift limit for your spouse can reduce pressure and spark more creative, thoughtful giving. The best investments in happiness often come from sharing experiences and making connections rather than giving or receiving costly presents.

We sincerely wish everyone a joyful holiday season and look forward to reconnecting in the New Year!

 Information is being offered for education purposes only. Consult with your financial planner for specific financial advice.