saving-budgeting

Save Now, Celebrate Later: Planning Your End-of-Year Gifting and Giving

Last Updated: October 13, 2025

The holiday season is a time of joy, connection, and giving. But it can also bring stress. This is especially true when it comes to money. Gifts, travel, decorations, and charitable donations add up quickly.

The average holiday budget in Indiana is $1,023.83, which ranks the state 31st in the nation for holiday spending.[1] If you wait until December to plan, you may end up relying on credit cards or dipping into savings.

The good news is that with some holiday savings tips and early planning, you can enjoy the holidays without the financial hangover. By setting a budget, saving throughout the year, and making smart choices, you can keep your spending under control. Plus, you can focus on what really matters, celebrating with family and friends.

Why It Pays To Start Saving Early for the Holidays

Starting early helps you spread costs over several months instead of cramming everything into one or two paychecks. This can reduce stress and prevent overspending.

When you have a set plan, you can:

Avoid last-minute credit card debt.
Take advantage of sales throughout the year.
Make thoughtful choices about gifts and donations.

Even small contributions to a holiday fund can make a big difference. Setting aside just $20 a week starting in September gives you nearly $300 by December. And if you can set aside $20 per week all year, that's over $1,000 saved for the holidays! That extra cushion can cover gifts, travel, or special meals without throwing off your regular budget.

Step 1 – Set a Gifting & Giving Budget

Start by listing everyone you plan to buy for, as well as any events or activities you’ll attend (don't forget to include teacher and principal gifts!). Include costs like travel, wrapping paper, and holiday meals.

Once you see the total, set a realistic budget based on what you can afford — not what you wish you could spend. This is a great time to revisit your overall financial goals. Sticking to your holiday budget can also help you stay focused on your priorities to avoid surprises in January.

Step 2 – Open a Dedicated Holiday Savings Account

One of the best ways to stay on track is to keep holiday savings separate from everyday spending money.

In Indiana, holiday costs are much higher than what families can save each month. A new report shows it could take over four years of saving to pay for one Christmas without cutting expenses or borrowing.[2]

Consider opening a high-interest savings account or money market account just for holiday expenses. These accounts make it easier to see your progress and prevent you from accidentally dipping into your holiday funds for other needs. Using Centier's digital banking, you can add nicknames to your accounts, so you know which one is for your holiday budget.

Some families even set up automatic transfers so that a set amount is transferred to this account every payday. That way, your holiday fund can grow without you having to think about it.

Step 3 – Get Strategic With Gift Lists

A well-planned gift list is key to avoiding overspending. Start by writing down who you need to buy for and setting a spending limit for each person. A strategic gift list can also help you prioritize meaningful gifts over expensive ones. This helps keep your holiday spending intentional.

To stretch your budget:

Consider group gifts.
Shop early.
Use rewards programs.

One meaningful gift from the whole family can save money and reduce clutter. When you start early, you’ll have time to find the best prices and avoid last-minute gift purchases.

Remember, many stores offer points or discounts you can apply to holiday purchases. Take advantage of this when you can.

Step 4 – Plan Your Charitable Giving Wisely

The end of the year is a popular time for charitable donations. While giving is a wonderful tradition, it’s easy to give more than you intended if you don’t plan ahead.

Decide how much of your holiday budget will go toward donations.
Research charities to make sure they align with your values.
Consider donating time or skills if your budget is tight.

If you’re saving for larger charitable goals in the future, a CD or IRA can help your money grow while you plan for bigger giving projects.

Step 5 – Shop Smart: Sales, Rewards & Early Deals

Holiday sales aren’t limited to Black Friday anymore. Retailers now offer deals throughout the fall.

To make the most of your money:

Sign up for store alerts and loyalty programs.
Compare prices online before making a purchase.
Buy in bulk for items like wrapping paper or baking supplies.

Shopping early helps you avoid the stress (and higher prices) that come with last-minute shopping trips.

Step 6 – Track Your Progress Along the Way

Tracking your spending is just as important as setting a budget. It’s easy to overspend when you don’t know how much you’ve already spent. Review receipts or bank statements each week to stay on top of costs.

You can use a budgeting app, a simple spreadsheet, or even a notebook. The key is to check in regularly. If you notice you’re getting close to your limit, you can adjust before it becomes a problem.

Make Your Holidays Joyful, Not Stressful

The holidays should be a time of fun, family, and gratitude — not worry about bills and debt. By planning ahead, setting clear limits, and saving a little at a time, you can enjoy a season filled with joy and generosity.

Centier Bank offers savings products and financial resources to help you reach your goals year-round. Start today so you can celebrate later, stress-free.

Sources:

[1] https://wisevoter.com/state-rankings/holiday-spending-by-state/#indiana

[2] https://www.newsweek.com/map-reveals-how-early-each-state-needs-start-saving-christmas-2121447