For many people, the holiday season is synonymous with financial stress. Between gift-giving, feasting, and holiday travel, it’s easy to overspend without noticing—until it’s too late and you’re stuck with a stack of bills. Fortunately, it doesn’t have to be that way. One of the easiest ways to enjoy a stress-free holiday season is to plan and create a budget (and stick to it). Use these holiday budgeting tips to develop a sound financial plan. 

Make a list and create a budget 

Start by making a list of all the gifts, holiday meals, decorations, and travel you expect to pay for this year. Include every item, no matter how small the expense. Seemingly small costs, such as greeting cards and wrapping supplies, can start to snowball as the season progresses. 

Once you’ve made your list, write down how much each item will cost. If you’re unsure, research online or look over your spending from last year to come up with an estimated cost. When in doubt, always overestimate—it’s better to come in pleasantly under budget than unexpectedly over. 

The last step is to add up the cost of everything on your list. Compare your total estimated cost against your current monthly budget. If you buy everything on your holiday shopping list, will you have enough money left for other essential expenses? If not, re-work your holiday shopping list until it fits comfortably in your budget. Stick to the 50/30/20 rule of budgeting, which allocates 30 percent of your net monthly income to “wants”—including holiday extras. 

Set up a holiday savings account 

Now that you have your list and budget in order, it’s time to set up a place to manage your money. A great way to do this is to designate a savings account for special occasions, such as holiday budgeting. Separating your holiday shopping funds ensures you don’t overspend—or accidentally spend that money on something else.

Additionally, choose a specific credit card for your holiday shopping so that you can set a limit and keep track of your running total. You can use funds from your holiday savings account to pay your credit card balance each month.

Earn rewards with a DEXSTA credit card 

Be intentional about which credit card you use for your holiday shopping. Using a rewards credit card can help you earn significant cash back points and rewards. For example, the DEXSTA Visa Platinum Rewards card offers points to cash, travel rewards, and merchandise rewards that never expire. As an extra bonus, holiday shopping with a rewards card can also help build your credit score (as long as you pay your balance off in full and on time).

Holiday shopping with a rewards card makes it easy to set a limit, track spending against your budget, and earn extra points to redeem throughout the year. And if you already have a rewards card, don’t forget to check your points balance to see if you can redeem rewards to offset some of the expenses on your holiday shopping list this year. With a little financial planning, you can enjoy the seasons with your loved ones—without worrying about money.