This story is part of our December 2025 issue. To read the print version, click here.

“Holiday shopping typically plays out like a well-rehearsed melody — steady rhythms, familiar refrains. But this year, it feels more like jazz: improvisational and less predictable, with shifting consumer behavior, smarter spending and a younger generation leading the key change.”

The above quote from PwC’s Holiday Outlook 2025 reflects how I and many others are approaching holiday spending this year: more deliberately and thoughtfully. The survey goes on to report that 84 percent of consumers expect to cut back over the next six months, citing rising prices, new tariffs and higher cost of living. Gen Z respondents (ages 17 to 28) are saying they expect to reduce their holiday budgets by 23 percent — more than any other generation.

While many of us plan to pull back on the reins when it comes to spending, we still want to celebrate, create a sense of normalcy and maintain beloved traditions. To do that, we will have to approach the season with mindfulness and care.

Let’s continue that music metaphor as we dance to the beat of the current economy and count off our holiday priorities this year. Here’s a playlist for the 2025 holiday spending season:

“All I Want for Christmas Is You” … and you, and you. This holiday, prioritize connecting with friends and family in person or on the phone rather than buying them yet more things that they probably don’t need.

“Deck the Halls” with festive decor you already own and forage for live greenery in your yard or wherever it’s allowed. (Note that you’ll need a permit to collect greenery on most public land, and mistletoe is poisonous, so handle with care!)

“Jingle Bell Rock” outfits that are already in your closet rather than buying new clothes just for the season. It’s better for your wallet and the environment.

“Little Saint Nick”: Small businesses have gifts that are unique, artisan-crafted and locally made. Shopping small can make a big difference to your community.

“What Child Is This?”: Children make the season joyful, so bring them a couple of carefully curated toys and games that provide opportunities to play together, keeping the focus on connection.

“Bring me some figgy pudding…”: Instead of hitting the town for a $150 dinner and a $20 cocktail at a Christmas bar, invite your friends over, and tell them to bring their best holiday dishes. Potlucks are a festive way to share the joy and flavors of the season — just don’t forget the ‘nog!

“Run, Run Rudolph”… from running up debt. Keep the use of credit cards to what you can reasonably pay off in a month or two, and choose those that offer rewards like cash back or travel points. And for that matter, avoid “buy now, pay later” apps because they are tough to manage, the fees are scary, and now they can actually affect your credit.

“Sleigh Ride”: For many, travel can be the biggest expense during the holidays, so be willing to travel on odd days or times, and look for deals and discounts wherever possible.

We should also probably talk about what to do if you’re anticipating a smaller holiday shopping season this year. Let’s call it the “Grandma Got Run Over by a Reindeer” problem. In this metaphor, “Grandma” is your finances, and “reindeer” is the economy. You may be more focused on how to recover from financial difficulties than on being jolly. Step one: Take stock of your situation and set priorities. Make a plan to cover your bills and make at least the minimum payments on any outstanding debt. Set an appointment with a banker to review your options. Taking control of a difficult financial situation can be empowering, and isn’t peace of mind the very best gift of all?

Speaking of Grandma, the aforementioned PwC survey notes that while Gen Z will likely reduce spending this holiday season, older generations may increase their overall spending to make up the difference. My takeaway from this is that we owe our elders gratitude, and if your elders are like mine, all they really wish for at the holidays is to spend quality time with their family and loved ones. It doesn’t cost a thing to plan a visit with those who mean the most this year.

This little stroll through holiday music brings me to another important priority during this season of giving, and that is giving our time. Volunteering during the holidays is a great way to spread good cheer and happiness in our community. Spending a couple of hours as a family at your nearest food bank is a great way to set a tone of sharing and love. There’s a lesser-known holiday song, but it’s apt: “It’s Better to Give Than to Receive.”

Whether you celebrate this holiday season or not, the end of the year is the perfect time to reset priorities and reconnect with what’s most important to us. Even if your holiday shopping this year is more “Grandma Got Run Over by a Reindeer” than “Joy to the World,” my holiday wish for you is that your spirits are lifted, your loved ones gather close, and your bank account experiences a very happy New Year.

Susan Burns works in the communications department at SAFE Credit Union in Sacramento, where she regularly writes about personal finance.

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