Shoppers across Washington D.C., Maryland, and Virginia are embracing the season with a focus on smart, intentional spending. With many families looking to make the most of their holiday budgets, the search for great deals and meaningful purchases is in full swing. A little planning can go a long way – by setting a thoughtful holiday budget now, you can enjoy the celebration, gift-giving, and traditions you love while keeping your finances on track.
Deloitte’s 2025 Holiday Retail Survey reports the most negative outlook for this year’s shopping season out of the survey’s 40-year history. The survey reports that 77% of shoppers expect higher prices on holiday goods, and 57% expect the economy to weaken within the next six months. Shoppers across all income groups indicated they’re highly attuned to value, deals, and meaningful experiences. American shoppers overall plan to spend 10% less than they did in 2024. Generation Z, those aged approximately 18 to 28, said they would spend 34% less than they did last year. Millennials, aged 29 to 44, said they would reduce their spending by 13%.
Why Holiday Spending Gets Out of Control
Many people overspend over the holidays because it’s easy to get caught up in the rush of holiday shopping and the search for that perfect gift. Something might be on sale and seem like a really good deal, even if it’s outside your budget.
Online shopping makes it easy to overdo it and to shop impulsively when you can just click your way through your list of presents and put it all on a credit card that you’ll think about paying later. Shopping in person also has an impact, as holiday decorations, scenery, and the rush of a crowd can cause people to get caught up in the moment and overspend, especially when stores offer flash sales and limited-time opportunities
Social media can also make it hard to manage holiday expenses, especially among younger shoppers. The Deloitte survey revealed that 74% of Generation Z rely on influencers on social media to guide their holiday shopping. Seeing a celebrity or an influencer promote a “must-have” gift item can make it hard for many people to refrain from spending.
One of the primary drivers of overspending is not having a budget or engaging in little planning beforehand. After all, it’s easy to ignore a budget if you haven’t created one in the first place.
Set a Realistic Holiday Budget
Our holiday budgeting tips start with how much you spent last year. You may have to turn to your credit card bills to figure this out, but try to get as close an estimate as you can. Of course, the holidays are about more than gifts. You’ll have to include your other holiday expenses, such as travel, food, decorations, and charitable donations.
You should also take a look at your regular budget. You don’t have one. This is a good time to start. You should include your fixed costs and your variable costs. Fixed costs are things that you regularly spend money on and don’t change very much, such as your rent or mortgage, insurance, car loan, etc. Your variable costs may include groceries, utilities, gasoline, car maintenance, and healthcare.
Try to differentiate between your “wants” and your “needs.” For example, groceries, housing, and clothing are all things you need to live. Restaurant meals, food delivery, jewelry, and designer clothes are things you may want but don’t necessarily need. Compare your monthly budget to your income and look for ways you can cut back on your regular budget to make room for your holiday spending. If you’ve signed up for more than one streaming service, consider cutting back to just one at a time to save money.
You can then make a list of all the people you intend to exchange gifts with this year. This may include relatives, coworkers, neighbors, and longtime friends. Consider how much you’ll spend on each person and if there are any people you could cut from your list. Some people, such as neighbors and coworkers, might be relieved if you agree not to exchange gifts this year.
Smart Spending Strategies
One of the best ways to save money on holiday shopping this year is to focus on creating memories instead. If anyone in your household has a talent for cooking or decorating, you might whip up some holiday treats for people, or maybe some seasonal decorations. Of course, you’ll have to consider each person’s tastes and any allergies or diet restrictions they may have. Pinterest and other sites can offer plenty of ideas for do-it-yourself holiday presents.
Of course, there are also holiday shopping deals to be had. Black Friday (Nov. 28), Small Business Saturday (Nov. 29), and Cyber Monday (Dec. 1) may offer opportunities to save money on holiday shopping. You can also use websites like Coupons.com and RetailMeNot.com to look for sales and coupons. You might also consider customer rewards programs by checking Newsweek’s ranking of the best retailer loyalty programs,
Credit cards offer convenience, even when shopping in person. They can also be more secure than using cash. If one of your purchases doesn’t work right, or you need to exchange it, your credit card can offer proof of purchase if you failed to keep track of the receipt.
Your credit card company might also be able to help you rectify any problems with the retailer—and you’ll have a list of all your purchases to make sure your holiday budget remains on target.
If you have more than one credit card to use for your holiday shopping, one of them might also offer a rewards program. If you’ll be financing some of your purchases with a credit card, you might focus on using one that has the lowest interest rate.
The Deloitte survey revealed that 26% of shoppers plan on using loyalty points this season, compared to 20% in 2024. Putting your regular monthly expenses on a rewards credit card can be a great way to earn some shopping points or travel rewards, as long as you manage to pay off the balance in full each month. Using a rewards card for your holiday shopping can help you stretch your dollars a little farther by getting something back in return. It can also help you keep track of your holiday spending or if you need a proof of purchase to return something.
As with all your holiday shopping and your spending through the rest of the year, it’s important to make sure that you can pay off your credit card balance each month, so you don’t wind up paying enormous interest costs. If you have more than one credit card, and you might not be able to pay them off at the end of the month, you might consider using whichever card has the lowest interest rate.
Use Banking Tools to Stay on Track
With our mobile banking and online banking platforms, we make it easy for you to check your balances, make transfers, schedule bill payments, and find your nearest bank branch or ATM. Our FVCBank Mobile app is available for both Android phones and Apple devices.
You might also use a budgeting app on your phone to keep track of your regular monthly expenses and your holiday spending budget. This makes it convenient to keep track of your spending and remind yourself to stay on target, through the holidays and the rest of the year.
After-the-Season Check-In
Part of the reason that many people overdo it on their holiday spending is that they don’t take the time to review their budget and whether they are sticking with it. They might be more focused on getting back to school, work, and perhaps worrying about what happens when their credit card bill comes due. Part of the reason for creating a holiday budget, as well as a monthly budget for the rest of the year, is to track your progress and look for ways to improve. If you managed to stay within your budget this year, that’s great. If you haven’t, take a close look at and think about why it happened. Some items may have been more expensive than you expected. You may have been caught up in the spirit of the season and forgot to keep track of your budget and spending.
If you’re feeling like you’re in a bit of a financial hangover, you’re not alone. Many people overdo it with their holiday budgets. What’s important is to add up your holiday bills and figure out whether you need to cut back on your regular spending for a while. Carrying a credit card balance into the new year can add up to significant interest costs unless you make a real effort to pay that off as soon as possible.
How FVC Bank Supports Your Holiday Financial Wellness
As a community bank, we offer personalized service in a range of banking products to help you get through life and the holidays. This includes three options for personal credit cards, each with no annual fee, fraud monitoring, zero fraud liability, travel accident insurance, and SecurLOCK™ Email and Text Fraud Alerts. We also offer consumer loans such as automobile loans, personal loans, mortgages, and home equity lines of credit.
Contact Us to Learn More
We’re here to help you with your banking needs through the holidays and throughout the year. For more information, contact one of our representatives by calling 703.436.3800. You can also contact us online or visit one of our locations in Maryland, Northern Virginia, or Washington, DC.
