Friday Challenge: Celebrate the Holidays, Not the Debt!
It's Friday! And you know what that means.
I've got homework for you!
The holiday season is here!
The decorations are going up, the shopping lists are getting longer, and retailers are preparing for one of the biggest spending periods of the year.
According to the National Retail Federation, holiday retail sales are projected to reach a staggering $1.013 trillion in November and December 2026.
That's a trillion dollars!
And according to NerdWallet's 2026 Holiday Spending Report, Americans planning to purchase gifts expect to spend an average of $879 on those gifts.
But here's my question:
Are you planning your holiday spending—or are you letting the holidays plan it for you?
Whether you're stretching every dollar or have more than enough money to spend, this week's challenge is for you.
The Most Wonderful—and Expensive—Time of the Year
Holiday spending isn't limited to gifts.
There are family dinners, travel expenses, decorations, parties, charitable donations, and all those little purchases that somehow add up to a surprisingly large number.
And let's not forget the irresistible sales.
50% OFF!
BUY ONE, GET ONE FREE!
TODAY ONLY!
Here's something worth remembering:
A sale doesn't save you money if you purchase something you never intended to buy.
In fact, NerdWallet's 2026 holiday survey found that 27% of holiday spenders identified a deal that seemed too good to pass up as something likely to cause them to overspend.
Sometimes the smartest purchase is the one you don't make.
If You're on a Tight Budget
First, understand something important.
You don't have to spend a fortune to create wonderful holiday memories.
And you certainly shouldn't feel pressured to spend money you need for rent, utilities, groceries, or other essentials.
Consider a few alternatives:
Set a total spending limit. Decide what you can comfortably afford before shopping.
Include gifts, food, travel, decorations, taxes, and shipping.
Create a gift list. Assign an amount to each person and stick with it.
Compare prices. A little research can prevent unnecessary spending.
Consider meaningful alternatives. Homemade gifts, shared experiences, family traditions, and thoughtful acts of kindness can be more memorable than expensive purchases.
Be careful with credit and installment payments. Buy now, pay later may divide a purchase into smaller payments, but those payments still have to fit into your future budget.
And remember, there's absolutely nothing wrong with telling someone:
"This year, I'm keeping Christmas simple."
The people who care about you should understand.
If Money Isn't an Issue
Now, let's talk to the people who have a generous holiday budget.
Perhaps you can comfortably afford expensive gifts, elaborate celebrations, and luxury travel.
Wonderful!
Enjoy the rewards of your hard work.
But here's a question:
Does having more money mean you should spend without thinking?
Not necessarily.
Financial freedom gives you options.
It doesn't eliminate the value of making thoughtful decisions.
You can still compare prices, avoid unnecessary purchases, and prioritize quality over quantity.
You can also consider using some of your holiday budget to make a difference.
Support a local business.
Donate to a community organization.
Help a family facing financial difficulties.
Tip a service worker generously.
Sponsor holiday gifts for children.
Or give someone an experience they'll remember long after the decorations come down.
Sometimes the most meaningful thing you can do with money is use it to make someone else's life a little better.
Generosity is not measured solely by how much you spend, but by the difference you make.
Don't Let January Pay for December
Here's where I want everyone to pay attention.
Whether your holiday budget is $200 or $20,000, you should know what you're spending and why.
Credit cards can offer convenience and protections, but carrying balances may result in interest charges.
Buy now, pay later plans can make purchases seem smaller than they really are, especially when multiple payment schedules overlap.
And a holiday purchase that feels manageable today can become a financial burden next month.
The goal is to enjoy the holidays without creating unnecessary stress for the new year.
After all, January has bills, too!
Your Friday Homework: The Holiday Spending Reality Check
This week, I want you to complete one simple assignment.
Create your 2026 Holiday Spending Plan.
Start with these five steps:
1. Choose your total holiday budget.
Select an amount that fits your financial circumstances without sacrificing essential expenses or savings priorities.
2. Divide it into categories.
Include gifts, food, travel, entertainment, decorations, charitable giving, and a small cushion for unexpected costs.
3. Review your shopping list.
Identify what you genuinely want to purchase and what you're considering because of pressure, habit, or advertising.
4. Decide where you can create more value.
If your budget is limited, look for ways to save without losing the joy of the season.
If your budget is generous, consider opportunities to create meaningful experiences or support others.
5. Set one financial boundary.
Maybe it's refusing to carry holiday debt into January.
Maybe it's avoiding impulse purchases.
Maybe it's choosing experiences over unnecessary gifts.
Whatever it is, write it down.
Then commit to it.
Final Thought
The holidays should be a time of joy, connection, gratitude, and generosity.
Not a competition to see who can spend the most.
And certainly not a reason to begin the new year overwhelmed by bills.
You don't need an unlimited budget to celebrate beautifully.
And having an unlimited budget doesn't mean you should spend without purpose.
The smartest holiday shoppers aren't necessarily the ones who spend the least. They're the ones who spend intentionally.
So here's your challenge:
Before making your next holiday purchase, ask yourself:
Does this purchase add value to my celebration—or simply add to my spending?
Enjoy the holidays.
Make wonderful memories.
Give generously when you can.
And remember:
The best holiday budget is one that allows you to celebrate today without regretting it tomorrow.
That's your Friday Challenge.
Now go make your holiday spending plan!
Champions don't guess. Neither should your business.
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