It’s never too early to start planning for the holidays. If you start now, your December self will thank you.
September might feel early to think about holiday budgeting, but here’s the truth: the best time to prepare for holiday expenses is right now, when you’re not in the thick of the season’s chaos.
If you’ve ever hit January feeling financially hungover from the holidays, this holiday spending guide is for you.
Why Holiday Financial Planning Matters
You know the holidays are coming and you know you’ll need to spend extra in December. But somehow it still catches you off guard every year. Don’t let holiday expenses stress you out or force you into holiday debt.
No need to go into credit card debt over the holidays if you save a little each month in advance for these bigger, less frequent costs.
Your Complete Holiday Spending Checklist
Take a moment to think about what you typically spend money on during the December holidays. Here’s a comprehensive holiday budget checklist:
Gifts
- Family members
- Friends and coworkers
- Teachers, service providers, etc.
- Don’t forget gift wrap, cards, and shipping!
Food & Entertainment
- Holiday parties (hosting or attending)
- Special meals and treats
- Baking supplies
- Holiday drinks and entertaining
Travel
- Flights or gas for holiday visits
- Hotels or extra groceries for houseguests
- Pet boarding if you’re traveling
Decorations & Traditions
- New decorations or replacing old ones
- Holiday plants or flowers
- Special holiday activities or events
- Holiday cards for your mailing list
Charitable Giving
- Year-end donations
- Toy drives or food bank contributions
How to Set Up Holiday Spending in YNAB: Step-by-Step Guide
Step 1: Analyze Last Year’s Holiday Spending
Pull up your bank statements from November and December last year. What did you actually spend? This is your reality check – not what you think you spent, but what you actually spent.
Pro tip: If you’ve been a YNAB user for more than a year, just click back to November and December of last year to check out your holiday spending. No need to pull up your bank statements!
Step 2: Set Your Holiday Budget for This Year
Based on last year’s spending and this year’s financial situation, decide what feels comfortable. Maybe you want to spend the same amount, or maybe you want to be more intentional this year.
Step 3: Do the math
If you want to spend (for example) $1,200 on holidays and it’s currently September, you have 4 months to save. That’s $300 per month to set aside, starting today. Think about whether you can swing the amount you came up with. If not, perhaps you can adjust your thinking on how much to give this year.
Step 4: Create YNAB Holiday Categories
In the YNAB budgeting software, create categories for your different holiday expenses. You might have “Holiday Gifts,” “Holiday Food,” “Holiday Travel,” etc.
If you want, you can have one big category, like “Holidays.” But if you’d like a more granular report so that you can see what you spent in each category (and perhaps pare down your spending next year), having more categories might help. Group them all under a category group called “Holiday Spending” or whatever suits your fancy.
Step 5: Set Up YNAB Targets for Holiday Savings
Use YNAB’s target feature to save the right amount each month. For Christmas budgeting, create an Annual Set Aside goal for the full amount you need for each category, with a date of December 31. (Making the By date the last day of the month ensures that it will reset properly next year.)
YNAB will divide that amount by number of months left until December 31. If you’re setting the target in September, YNAB will ask you to assign one-fourth of the amount each month until December. Once January 1 rolls around, that amount will be divided by 12 and YNAB will ask you to assign that amount each month.
The Benefits of Holiday Budget Planning
Here’s what happens when you plan ahead for holiday finances:
- No January regret – You spent exactly what you planned to spend
- No holiday credit card debt – Setting aside money in advance prevents overspending
- Easier shopping – You know exactly how much you have for each category
- Enjoy the season – Focus on what matters instead of worrying about money
Start Small If Necessary
If setting aside $300 a month feels impossible right now, start with what you can. Even $50 a month gives you $200 by December – that’s $200 more than you’d have otherwise.
Remember: some holiday preparation is infinitely better than no preparation.
Your December Self Will Thank You
Every dollar you set aside now is a gift to your future self. When December rolls around and everyone else is stressing about holiday spending, you’ll be calmly checking your YNAB categories and spending with confidence and no regrets.
The holidays should be about joy, connection, and celebration – not financial stress. A little holiday financial planning now can make all the difference.
Ready to take control of your holiday budget? Book a Discovery Call now and we can explore how I can help you let YNAB make every season stress-free.
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