A Simple Holiday Budget, For Those of Us That Hate Budgeting
I hate budgeting. It has always felt cumbersome and hard to maintain, and I’ve never found it that helpful. I’d rather just have a rough idea of where my money goes instead of tracking every little thing.
This year, though, I want to be more mindful about what I spend in December. I’m giving a lighter, simpler holiday budget a try so things don’t get out of control. In this article, I’ll share an easy way to help you start the new year on solid financial ground, while still spending money and time on the people who matter most.
Affordability Is Stretched This Season
Celebrating costs more than it used to. Even people who normally feel comfortable with their spending are making adjustments.
BMO’s Real Financial Progress Index found that Canadians expect to spend about $2,310 this holiday season, and 61% have already changed their plans because of higher prices tied to tariffs.
CPA Canada notes that gift budgets in particular continue to climb. They now average $661, which is roughly 10% higher than last year. Younger Canadians are planning to spend even more, and over half say they will lean on credit to make it possible.
The same pattern exists in the United States. A survey done by the National Retail Federation shows that gift budgets will average $628 for adults and $743 for households with children this season.
Overspending in December can be really stressful. In a survey last year, 65% of people said holiday spending stresses them out, and 1 in 5 won’t recover financially until May or later.
Everything adds up: gatherings, gifts, extra groceries, and travel costs. It’s not one big decision, but lots of small ones that add up quickly.
That’s why this year, I want a clearer idea of my spending before it gets out of hand. The main goal is to have a simple overview so I’m not surprised later.
Choosing One Number for the Month
Experts all say the same thing: pick one number for all your December holiday spending, including gifts, travel, meals out, gatherings, and small traditions.
The Globe and Mail mentioned a planner who suggests using 1.5% to 2.5% of your yearly income as a guide for holiday spending. So, if you make $75,000 a year, set aside $1,125 to $2,250.
Another good way to choose your number is to look at what you spent last year and adjust up or down as needed.
In the end, the number you choose should be something you can manage in the first months of next year. Spending in December shouldn’t make January and February more difficult.
A People List Helps Create Focus
After you’ve chosen your amount, make a list of the people you want to give to or spend time with. This helps you focus on connecting with others rather than just buying things. It also shows where most of your holiday spending usually goes.
Another benefit of making a people-first list is that it helps you decide how you want the month to feel. This step guides the rest of your budget. When you focus on people, your spending feels more meaningful.
Including Donations Inside the Plan
If you haven’t donated as much as you wanted this year, December is a good time to catch up. Many organizations run year-end campaigns, and it’s easy to give on impulse. Instead, decide on an amount in advance and choose the groups you want to support.
For Canadians, donation tax credits help the dollars go further. If you want to understand how the credits work, Nook’s guide to charitable donations breaks down the rules in a straightforward way:
Derek Hopfner
Accounting for December’s Other Costs
A lot of what makes the month special isn’t just gifts. It’s also extra groceries, trips to see family and friends, a few events, and yearly traditions. These things often shape your December more than anything you buy in a store.
List these as their own part of your plan. You don’t need exact amounts, just remember they’re there and should be included. Keeping track of them makes planning easier and helps you stick to your budget.
Looking Ahead to 2026
Choosing one number for December, listing what I want to spend money and time on, and picking the organizations I want to support all help make the start of next year less stressful. If holiday spending stretches into March or April, it can delay other plans. Even if interest rates go down in 2026, credit card rates likely won’t, so carrying a holiday balance gets expensive quickly.
You’ll notice this approach isn’t strict. It’s just a way to be more intentional before habits, ads, and the busy holiday season take over.
A December With More Awareness
I still hate budgeting, but the approach outlined in this article is more about being prepared. Planning ahead now helps you avoid stress later and provides the budget for that ceramics class you've been eyeing!
