The enticement of big sales come Black Friday. The shining lights of pre-December Christmas marketing. The nauseatingly dulcet tones of Mariah Carey.
All that considered, every November, Americans fall into what Suze Orman calls the ‘holiday money trap’.
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According to her, it’s the time of year when many people think to themselves, “I gotta buy this gift. I have to get this for somebody. I can’t show up at this party and not have something for everybody.”
But Orman wants people to have an action plan so they don’t undo all the penny-pinching work they’ve done all year (1).
Here’s what the successful financial advisor says you can do to avoid falling into the seasonal-spending abyss.
Guilty holiday spending
According to a 2025 Deloitte report on holiday spending, Americans are expecting to spend about $1,575 on average this season (2), and 77% think that prices will be higher than 2024.
What’s worse is 45% of parents say they’ll go into debt just to make the holidays special for their kids (3).
When it all adds up, it’s roughly $263 billion in holiday spending that often leads to a mountain of stress and credit-card bills that roll straight into the new year (4).
Those gifts that you’ve spent time and money on? Orman thinks most people don’t even really want what they’re receiving.
So what’s her solution? It’s surprisingly simple.
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The Suze Orman holiday gift plan
The simplest solution? Don’t spend, especially “for the memories.”
Orman’s no-nonsense four-step fix to give smarter and still play Santa includes:
- Make a budget: Here’s where you’ll want to draw a line in the snow with a real number you can afford for all of the seasonal expenditures like gifts, meals and decor.
- Make your list: Just like Santa, make a list of who your giving gifts to, and check it twice. Does everybody on the list need a separate gift? Can you consider a single gift for a couple? Can you spend time with an older relative instead of buying something they don’t want?
- Do the math: Divide your total by the number of people. For example, if you’ve budgeted $500 and 20 people on your list, that’s $25 per person.
- Ask what they want: Have each person on your list offer five things they’d love under that amount. Then pick something from their wishlist; they’ll be guaranteed to like it and it cuts down on waste.
Orman’s method kills two holiday stress monsters at once: debt and disappointment. And it lets you enjoy the season instead of dreading your January credit card bill.
How to plan for other holiday spending
Once you’ve charted a course, you can use Orman’s strategy across your whole holiday season, and that means other discretionary spending:
- Decor and party hosting: Set a party budget. Hosting more than once? Consider buying items in bulk like disposable cutlery and napkins. You can cook freezer-friendly dishes where you can use the same ingredients. Even better, ask your guests to bring their own dishes to the celebration.
- Cash is king: You can put aside a set amount of cash in envelopes meant for each recipient and only spend that amount. It automatically limits you because you won’t be tempted to overspend (5).
- Leverage AI: About 33% of consumers this year plan on using AI to help them with their shopping. It can help you come up with ideas that are within your budget (2).
- Spread out the spending: This year, half of consumers expect to be done with their holiday shopping by Black Friday (6). Spending throughout the season can help control your cash flow and avoid impulse buys.
- Travel: Plan your trip ahead of time. Consider visiting friends and family during off-peak times when flights may be more affordable.
- Larger groups: Do you have a large extended family, friends group or colleagues at the office? Suggest budget-friendly ways to celebrate together, such as a gift exchange (a.k.a. Secret Santa) or potluck meals.
The holidays shouldn’t be a spending competition. There should be a time of year when you can spend time with loved ones without feeling the stress of debt.
If you have a plan, you can give meaningful gifts without the spirit of debt haunting you. Remember, the best present you can give is your presence.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Suze Orman Show (1); Deloitte (2); Credit Karma (3); Intuit Quickbooks (4; Boston University (5; Boston University (6).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.