How to stay debt-free this holiday season as costs and uncertainty rise

ATLANTA - .

With the holiday season approaching and many families already feeling the effects of the government shutdown, SNAP benefits delays, and other federal cuts, financial experts say now is the time to plan ahead.

Personal finance expert Kimberly Palmer of NerdWallet joined FOX 5 to share practical ways to navigate holiday expenses without added debt or guilt.

How to start holiday financial planning

What they're saying:

"The most important thing you can do is to plan ahead," Palmer said. "If you have an estimate for what you might want to spend this holiday season, it’s really helpful to start planning and setting that money aside as soon as possible."

Palmer says that while it can be tempting to rely on credit cards, starting the new year with interest and unpaid bills can make financial recovery difficult. She recommends setting category limits for spending and prioritizing what matters most.

What is your holiday focus?

"For some people, it might be about picking out the perfect gifts and really putting most of their resources into gift buying," she said. "Other people are going to be more focused on travel and decor. It’s all about setting your own priorities."

Still, she adds that it’s important to stay flexible when costs exceed expectations. "We don’t want to feel bad or just feel guilty for spending because we’re all just trying to do our best," Palmer said. "If possible, leave a little extra room in your budget for those mistakes."

How is your budget?

Palmer also suggests changing how people think about budgets altogether. "It’s not really about limits," she said. "It’s about what you’re saying yes to. Focus on the positives, the things you’re excited about this holiday season."

SEE ALSO:

• Trump must fully fund SNAP benefits in November, federal judge orders
• Credit card delinquency rates are the highest in these states in 2025, data shows
• How to help SNAP recipients in North Georgia
• Food banks in metro Atlanta helping families during SNAP benefit shutdown
• Where to get help to stay warm, how to give

Learn more budgeting methods

What you can do:

For those who need structure, she recommends NerdWallet’s 50/30/20 budgeting method, which divides take-home pay into needs, wants, and savings or debt payments.