Christmas is a season of joy, generosity and an opportunity to reconnect with friends and family. It can also bring financial stress if we are not careful. Overspending in December does not just hurt now, it can follow you into the New Year when property taxes, income taxes, and other annual bills are often due.

As parents of two young children, my wife and I have a renewed feeling of the magic of the season. We have also been reminded that the most meaningful gifts oftentimes are not found under wrapping paper. They are in the memories we create together. Like many families, we do still buy traditional gifts to watch the sparkle in the receiver’s eye Christmas morning.

Credit cards make acquiring gifts very easy, but convenience comes at a cost. Credit card rewards can be tempting but with convenience fees and high interest rates, now averaging over 20%, the benefits of these perks can quickly be erased. If you use credit cards, pay the balance in full each month. Even a small balance can grow exponentially with the interest rates of today. Carrying debt into the New Year can turn holiday joy into long-term financial strain.

A few simple steps can help keep your finances track and reduce New Year’s stress:

• Set a holiday budget and stick to it.
• Include annual items in your budget such as property taxes and yearly renewals.
• Focus on experiences and traditions instead of expensive gifts.
• Use cash or debit for purchases to avoid overspending.

If you find yourself fortunate enough to have room in your budget, consider giving back. Local charities often need extra help during the holidays, and even small donations can make a big difference. If not, as an alternative to financial contributions, volunteering your time can make a big difference.

Financial health is a gift to yourself and your family. A thoughtful budget today means less stress tomorrow. Focus on what truly matters, joy, generosity, and time together. Your future self will thank you.

Chris Laughhunn, CPA, CFP® is a Tax & Accounting Principal for Keller & Associates CPAs, PLLC and an Associate Advisor for Keller Wealth Advisors.  

Published in the Victoria Advocate.