From the cookies in the oven to the wrapped presents under the tree, nothing about the holiday season comes cheap nowadays. Even families who can’t afford to spend much may find they are depleting their bank account to pay for all the extras that are supposed to make the season bright.

“There is overwhelming pressure to maintain traditions,” says Megan Slatter, wealth advisor with Crewe Associates in Salt Lake City, Utah. That’s why, for example, people buy one more set of Christmas pajamas each year regardless of how packed the dresser drawers already are.

“A lot of that comes from wanting to do best for the people you care about,” says Clint Jasperson, a wealth advisor with financial firm Thrivent in Loveland, Colorado.

In their pursuit of providing family and friends with a magical holiday season, people may charge purchases to high-interest credit cards and find themselves facing an onslaught of bills after the new year.

Here are 10 ways to sidestep those pitfalls and avoid the holiday financial stress that comes with them.

1. Set expectations early

Unrealistic expectations set the stage for overspending and financial stress.

“You’re trying to give gifts when in reality, you shouldn’t be,” says Brandon Norwood, financial planner with Oak City Financial, a North Carolina-based financial firm that serves clients across the nation.

He notes that it can be difficult to be open and honest with friends and family members, but having a conversation about holiday traditions and gift-giving can relieve much of the stress and anxiety that comes with the season.

Be ready with suggestions about how to create a meaningful celebration that won’t drain anyone’s bank account. Ideas might include:

• A Secret Santa exchange in which every participant randomly draws a name and purchases a gift for that person.
• A white elephant exchange in which everyone brings one gift under a certain value.
• Purchase gifts only for children and not adults in the extended family.

Beyond talking to your family members, set expectations for yourself, Slatter says. Commit to not using credit cards or purchasing items you hadn't planned to while holiday shopping.

2. Don’t overlook costs other than gifts

It isn’t just gifts that are costly during the holidays. Many people also spend a significant amount on other items as well.

“We need to factor in purchases and decorations and travel and time,” Slatter says. “The hustle and bustle can be really draining.”

A packed holiday schedule can mean spending more on non-holiday expenses too. For instance, busy families may find they have takeout meals more often in the weeks leading up to the end of the year. Plus, they may be driving more often to various events, which can add to fuel costs.

3. Stick to a realistic budget

Before you begin shopping for the holidays, create a budget that covers both gifts and other expenses. It’s also smart to include a buffer to account for rising prices.

“Inflation and the cost of goods have gone up,” Jasperson says. The amount you budgeted last year might not cover all your expenses this year.

Be realistic when planning for expenses. If money is tight, don’t skip budgeting for cookie ingredients if you know you'll make them no matter what.

Instead, prioritize the people and activities that are most important to you and make cutbacks elsewhere as needed.

4. Shut out social media noise

Instagram, TikTok, Facebook and Pinterest can all be endless sources of inspiration for the holidays.

“The downside is that a lot of those apps are good at playing up our temptations,” Jasperson says.

We see how other people are preparing for the holidays and we want to do the same. Then, rather than sticking to a carefully crafted budget, people spend on impulse or make aspirational purchases that they hope will make the season perfect.

Avoid this trap by limiting your time on social media apps, and remember that what you see online is not necessarily the reality for most other people.

5. Shop with a list

One of the best ways to avoid overspending is to shop with a list. That list should include more than just the names of gift recipients.

“Outline exactly what you want to buy,” Slatter says.

She says having specific items in mind while shopping is key to resisting the “mesmerizing” 50% off signs you’ll see in the stores. Otherwise, you’ll be tempted to buy that deeply discounted item even if it’s not exactly what you need or want.

If you aren’t able to write down a specific gift idea for each person on your list, at the very least write down a price limit to use as a guide while shopping.

6. Stay out of the stores

Many people enjoy shopping in brick-and-mortar stores. They offer the opportunity to see items in person and discover products you may not have considered before. For that reason, they also make it easy to overspend.

“If you can make a list ahead of time, shopping online lets you do a lot of effective shopping,” Jasperson says. You can stick to what's on your list and hopefully avoid the temptation to buy more.

If you do decide to shop in-person, be honest with yourself about your spending habits. If there are specific stores that lead you to overspend, consider whether it's wise to shop there.

7. Consider homemade gifts

Homemade gifts can include things like brownie mix in a jar, pillowcases sewn with a favorite fabric or plants you propagated from cuttings.

“That is so thoughtful for the right person,” Jasperson says.

Be mindful of the gift-giving dynamics in a particular relationship. Even with the best of intentions, they may not be well received in some families.

But if it's acceptable, a homemade gift can be memorable for the recipient and inexpensive for the giver.

8. Be smart about financing purchases

Even if you've sworn off credit cards for this holiday season, you're likely to encounter numerous opportunities to finance your holiday purchases.

Buy Now, Pay Later arrangements are especially popular right now. These let shoppers make a purchase and pay it off over a series of months, sometimes with no interest charges.

“My personal bias is to try to avoid those traps,” Jasperson says. They encourage people to spend more than they intended and are often used to buy items that may quickly lose value.

Before signing up for a BNPL agreement or other financing offer, be sure you understand the cost involved – and be sure you can pay off the purchase on schedule.

“Do you have the self-discipline and do you have the financial means to pay it off?” Slatter asks. “If not, walk away.”

9. Save space for experiences

The holidays are about more than material goods, and you should set aside some time and money to enjoy the experiences of the season.

“Think of it as an investment in memories, not things,” Slatter says.

Some holiday experiences are practically free – driving through town to see decorated houses or popping in a holiday movie at home, for example. Others may cost money, but it could be worth it to forego some gifts to participate in these activities instead.

“If we’re really honest with ourselves, gifts don’t provide sustained happiness,” Jasperson says, "(But) I’ll always be able to reflect fondly on those experiences.”

10. Start saving early for next year

Once the new year rolls around, take stock of the past holiday season. Consider what went well and where adjustments could be made. Then, make plans to start saving for next year.

“Based off last year’s budget, set aside money on a recurring basis,” Norwood says.

By building a holiday nest egg, you can break the cycle of holiday financial stress. When next year rolls around, you’ll already have a budget in mind and money in the bank to take advantage of holiday deals and discounts as they arise.