7 holiday spending traps to avoid this season

The holidays are packed with ways to spend more than you mean to. One-click sales, last-minute gifts, pressure to make everything feel magical—even when you’re watching your budget—it’s easy to get caught off guard.

So before the season kicks into high gear, here are a few holiday spending traps to look out for and what you can do instead.

1. The “Black Friday mentality”

Big sales can trick you into thinking you’re saving when you’re really just buying more. Alec Kellzi, CPA at File Tax, calls it the “Black Friday mentality,” and it happens when individuals spend their money and convince themselves they are saving it. “They claim to have saved money by spending on what they had not intended to buy in the first place,” Kellzi explains.

And don’t forget to watch for Black Friday scams and other deals that seem too good to be true. These Black Friday and Cyber Monday safety tips can help you avoid disaster.

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Try this: Make your list before you shop. Know who you’re buying for, what you’re getting, and how much you’ll spend. And stick to it! If something catches your eye that wasn’t on the list, walk away for a day. Most great deals don’t look as great the next morning.

2. Overspending from guilt or generosity

It’s easy to lose sight of limits when your heart leads the way. “When you find yourself verbally or mentally defending purchases, be on the lookout,” warns Kellzi. He says phrases like “it’s just this once” or “they deserve it” are red flags that guilt is steering the ship.

Try this: Instead of trying to make things perfectly equal, focus on what each child will actually enjoy. Maybe your teen has their heart set on a big-ticket item, and your fifth grader would be thrilled with something smaller. That doesn’t mean one got more, it just means you’re giving them what fits.

3. Falling for emotional advertising

Every holiday ad is doing the same thing: pulling at your heartstrings. The music, the lights, and the slow-motion gift unwrapping are all designed to get you to spend. “The onslaught of advertising is designed to play on your emotions during what is already a highly emotional time of year,” says Martin Lynch, president of the Financial Counseling Association of America.

Try this: One way to avoid getting pulled in is to cut down on the noise. Unsubscribe from the promo emails, turn off brand notifications, and scroll past the one-day-only deals. If something grabs your attention anyway, pause. Walk away, check your budget, or ask yourself: Would I still want this after the holidays?

4. Ignoring hidden costs

Gifts are only part of the picture. “There's the cost of decorating the home, providing the meals (if you're the host), traveling (if you have to go a distance to be with friends or loved ones), plus any donations you might want to make,” notes Lynch. People often forget to adjust their budgets in advance to cover all of these seasonal expenses.

Try this: Add a cushion to your holiday plan for the things you don’t think about until the last minute, like shipping fees, gift wrap, party snacks, and teacher gifts. A little wiggle room keeps surprises from turning into credit card debt.

5. Treating credit or “buy now, pay later” as free money

Installment plans make purchases feel painless until the bills arrive all at once. “You may believe that four $50 installments are doable before you realize that you have other purchases that also require payment splitting,” says Kellzi.

Try this: If you can’t pay it off by your next paycheck, skip it. As Lynch puts it, “Using anything but cash makes it easier to forget that actual cash is being spent.”

When kids and teens shop through Greenlight’s debit card, they only spend what’s in their balance. So there are no surprises and no interest, just real money management practice.

6. Overspending to meet expectations

“The biggest holiday trap is expectation: expectations from ourselves, our children, and our extended family,” says Echo Wang, co-founder of EpicBooks. “Parents especially tend to feel under pressure not to disappoint their kids, and it often leads to overspending.”

Try this: Revisit what your family actually values. “I’ve shifted to giving primarily to kids in our circle and focusing on time spent together and experiences,” says Wang. A few meaningful moments (baking cookies, driving to see lights, watching favorite movies) can replace piles of presents and still make the season memorable.

7. Forgetting to plan for January

Once the tree comes down, reality sets in. “Imagine a January without a financial hangover,” says Lynch. Looking back at last year’s spending can help you figure out what’s realistic this time.

Try this: Before you buy, think about what else that money could do. Kellzi puts it perfectly: “That $200 could be two months of your kid’s college fund contribution or three family pizza nights.” Thinking in terms of trade-offs makes spending feel real and more intentional.

How families can keep spending in check

If you want to avoid holiday spending traps this year, these tips can help. Here’s how families can stay grounded through the holiday rush:

• Start early. “Successful families schedule their vacation time in September or October rather than December,” says Kellzi. Spreading out costs keeps December from feeling like a financial free-for-all.

• Track as you go. Keep a simple note on your phone or use Greenlight to watch totals climb in real time. Seeing numbers grow makes it easier to rein things in.

• Set boundaries together. As Lynch explains, “Sit down together to create your spending plan so everyone recognizes the limits that exist.” When kids have a say in what the family prioritizes, they’re more invested in sticking to the plan.

• Stay flexible. Holiday budgeting isn’t about perfection; it’s about awareness. If you overspend in one area, cut back in another. 

• End on a high note. Once the holidays are over, check your family's progress. What worked? What didn’t? Celebrate the wins with a family movie night or a cozy dinner in. You’ll end the season on a positive note without the guilt.

Using Greenlight, families can set spending limits and teach kids to make smart choices with real money. It turns the holidays into a built-in lesson in budgeting, one that lasts long after the decorations come down.

As Kellzi reminds us, “The holidays will come again next year and the year after that. One modest season won't ruin anyone's childhood, but years of January stress and credit card debt can definitely impact your family's financial stability and your own peace of mind.”

This year, give your family the gift that comes from knowing you stayed mindful, made wise choices, and started the new year with money confidence.

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