Navigating Holiday Spending

The holidays are a time of joy and celebration, but for many, the season can also lead to financial stress. Between gifts, travel and festive gatherings, it’s easy for spending to spiral out of control. CERTIFIED FINANCIAL PLANNER^® professionals can play a crucial role in helping clients navigate the financial pressures of the season while staying true to their long-term goals. Here are three key strategies CFP® Pros can use to help their clients navigate holiday spending:

1. Encourage clients to establish a realistic holiday budget. Include all anticipated expenses, from big-ticket items like travel to smaller costs such as decorations and holiday meals. Suggest setting aside a portion of income for holiday spending throughout the year to minimize the need for credit card reliance during the season. If clients didn’t pre-plan, help them adjust other monthly expenses to free up funds without derailing their financial progress.
2. Another key strategy is to focus on the value behind holiday spending. Guide clients to prioritize meaningful purchases that align with their values and relationships rather than succumbing to societal pressures. Experiences, homemade gifts or even acts of service can often bring more joy than extravagant purchases or trendy items.
3. Finally, remind clients that the holidays are a season — not a reason to jeopardize their financial future. By reinforcing the importance of sticking to their financial plan, it’s possible to empower people to enjoy the festivities without regret in January. Through thoughtful planning and mindful decision-making, clients can celebrate the season with financial confidence and peace of mind.

Interested in learning more about what it takes to be a CFP^® professional? Download our Guide to Financial Planning Career Paths to learn how you can help others turn financial challenges into opportunities for success.