How to stop holiday spending from turning into January debt

Families can reduce the financial strain of the holiday season by setting specific spending limits for each celebration. A financial expert advised that treating Thanksgiving and Christmas as separate budget categories helps households track exactly where their money goes.

Jini Thornton, who appeared on Get Up Mornings with host Erica Campbell, recommended that families create distinct budgets for the Thanksgiving dinner and the Christmas season. She said that having clear limits for each event prevents the small costs of food, travel, and parties from merging into one large, unmanageable expense.

Thornton suggested that families divide hosting responsibilities instead of placing the burden on a single household. She recommended that adults share the work by dividing the menu, having guests bring specific dishes, and ensuring everyone contributes to the effort and the cost.

The advice includes a specific message for adult children. Thornton stated that everyone over the age of 21 needs to contribute like other adults. "Everybody over 21, they need to be anteing up like the rest of us adults," she said. This approach allows parents to scale back their own efforts as their children take on more responsibility.

One guest on the show shared that he and his wife recently discussed changing their Thanksgiving plans now that they are empty nesters. They intend to reduce the amount of food they prepare and ask their adult children to handle more of the holiday tasks. Thornton agreed that these conversations can be handled positively by involving everyone in the planning process.

To determine a realistic budget, Thornton advised listeners to ignore credit cards and buy now, pay later services. She asked viewers to consider what they would spend if they had to pay for every item immediately. "If I had to pay for everything now and I could not do buy now pay later, I could not use my credit card, what would my financial commitment be?" she asked.

Thornton noted that expenses extend beyond gifts to include food, transportation, entertainment, and decorations. She encouraged families to create a comprehensive spending plan that accounts for every part of the season. Her goal is for families to make decisions based on what they can afford now, rather than what they can defer paying until later.