Why we’re conditioned to overspend on holidays (and a festive budgeting challenge that can help)

Holiday spending has a way of sneaking up on even the most responsible planners. 

You head into December with a clear budget in mind, yet somewhere between gift exchanges, year-end sales and last-minute gatherings, the total creeps far higher than you expected. Reality sets in: The holidays are a real budgeting challenge. 

If this feels familiar, it isn’t a personal failing. According to behavioral researchers, our brains are “wired to be consumers.” 

“For 99% of our time on Earth, thinking about the long-term future hasn’t served us very well,” psychologist, certified financial planner and behavioral finance expert Brad Klontz tells CNBC. “Meeting our immediate needs was what it was all about.” 

The emotional pull of giving, the fear of looking “cheap,” the excitement of discounts and the belief that holidays are an exception to normal personal finance rules all encourage quick spending decisions that offer short-term gratification. 

Learning to slow down your overspending is easier than it may seem. A simple budgeting challenge can help you stay grounded, reduce impulse buys and reconnect spending with your long-term goals. 

That’s where our 12 Days of Mindful Money budgeting challenge comes in. It’s a free financial activity you can start any time this month to stay on track now, and set yourself up well for next year. Each day’s challenge takes just a few minutes and focuses on gentle awareness rather than restriction. 

How the 12 Days of Mindful Money budgeting challenge works 

For twelve days, you’ll complete one tiny task that nudges your brain toward healthier habits. 

These steps aren’t about cutting everything out. Instead, they introduce small amounts of friction, encourage financial wellness and help you make decisions in real time. This approach utilizes some helpful behavioral hacks like action bias, habit stacking and the power of small wins, making it easier to maintain a savings habit beyond this holiday season. 

Day 1: Start a holiday spending spreadsheet 

Create a simple holiday spending spreadsheet. Start by listing everything you’ve spent so far. Include gifts, decor, travel, donations and even “treat yourself” items purchased because they were on sale. Update the list throughout the month and when you’re done, you’ll have a detailed understanding of how much you actually spend so you can build a better holiday budget next year. 

But this exercise can help reign in this year’s spending too: Research from the University of Pennsylvania shows that awareness alone can influence behavior change. If spreadsheets aren’t your style, use a gift-tracking app like Santa’s Bag to see spending in real time. 

Day 2: Think about your “why” for your holiday spending 

Consider what holiday spending really means to you. Maybe it’s showing appreciation or creating lifelong memories. Naming why you spend more this season helps shift you away from obligation and toward choices that reflect long-term joy and reinforce simple, meaningful traditions. 

Maybe that expensive breakfast with Santa always ends in overstimulated tears, but your local library has a free meet Santa event each year, where you can pick up holiday books and read them snuggled up around the fire later.  

Day 3: Schedule weekly financial check-ins for next year 

Put a five-minute weekly money review on next year’s calendar. It can be as simple as looking at your checking and savings account balances or reviewing planned expenses. Georgetown University researchers note that simple mindfulness through things like regular check-ins improve financial success, lower stress and lead to better psychological wellbeing. 

Want to go the extra mile? Schedule a quarterly meeting with an Empeople Ongoing Financial Guidance Expert. One-on-one, personalized guidance is complimentary for All-In members who are serious about reaching their financial goals. 

Day 4: Identify your biggest holiday impulse trigger 

Everyone has one. It might be stress, social pressure or a “can’t miss” sale. Use the Five Whys method to find the root cause. 

Example: You add extra gifts to your cart. Why? You want people to feel appreciated. Why? You worry the gift isn’t enough. Why? You don’t want people to feel like you don’t value them. As you drill down, you start to realize you may be able to find a way to show them that without an expensive gift. 

Seeing the real trigger makes it easier to pause before relying on money as the solution. 

Day 5: Cut one or two things from your budget 

Look for small adjustments in your budget, not major sacrifices. Maybe it’s canceling an underused subscription or planning meals around what you already have in your pantry. Redirect that money toward your savings account or use it to avoid your credit card next time you buy a gift. 

Day 6: Swap a planned purchase for an experiential gift 

Studies show experiential gifts strengthen relationships more than material ones. Replace a store-bought item with something meaningful but low-cost, like a homemade spa day or a themed movie night. This also builds better long-term habits around gift-giving. 

Day 7: Reflect on your long-term financial goals 

Take an evening to think ahead. Do you want to improve your savings habit, increase your emergency fund or focus on saving for retirement? Write down a few reminders for January so your savings goals feel concrete and you don’t lose focus on them during the December hustle and bustle. 

Day 8: Set up an auto-transfer from checking to savings for next year 

Americans plan on spending $1,007 on Christmas this year, according to a recent Gallup poll. Divided over twelve months, that’s about $80-$90 each month. Set up an automatic transfer now to build next year’s holiday budget. If that feels like too much for this period of time, start with a small amount and adjust later. 

Pro tip: Watch these short tutorials to learn how to open a holiday savings sub-share and set up recurring transfers in Empeople Digital Banking today! 

Day 9: Choose one gift you’ll DIY instead of buy 

Spend a few minutes researching low-cost or upcycled gift ideas. A handmade ornament, home-baked treat or framed photo can be personal and affordable. DIY gifts naturally reduce impulse buys and help keep spending intentional. 

Day 10: Do a cart cleanse 

Open your online shopping carts and remove five items. Then close your browser. This reduces decision fatigue and helps you refocus on what you genuinely want rather than what landed there during a stressful moment or late-night scroll. 

Day 11: Commit to your next money challenge 

Pick a follow-up budgeting challenge that sounds fun (and manageable) for January. You might try a no–buy month, the envelope method or a 52-week savings challenge to help track checking and savings goals. 

Day 12: Celebrate your progress 

Take a moment to acknowledge what you accomplished. Look at how your savings habit grew, what you learned about your spending triggers, and how your long-term goals became clearer. 

This season, give yourself the gift of confidence. A simple budgeting challenge won’t solve every financial stress, but it can help you feel more grounded in a hectic time. And if you build a few solid habits now, you’ll start the new year with more clarity, more control and more space for the things that matter most.