Holiday shopping is in full swing, and it’s easy to get caught up and overspend.
Retired Army Brig. Gen. Mike Meese, president of Armed Forces Mutual, said veterans should establish a firm spending plan prior to making any holiday purchases.
"Set an overall limit based on what you can truly afford, then break that down with rough limits for each person on your list,” he said. “Most importantly, don't compromise your emergency fund or essential savings goals for holiday spending. Your financial security comes first."
Meese said it is also important to consider things like travel expenses and other holiday expenses that are not related to shopping.
"During COVID, many people gave bigger gifts because they couldn't be with loved ones in person,” he explained. “Now that we're traveling again, recognize that the cost of being there is part of the gift. You don't need to be as extravagant with presents when you're spending hundreds or thousands on airfare and accommodations."
If your travel schedule allows flexibility, choose travel dates when flights are less expensive, Meese suggested.
“I once flew our family on Christmas Day because it worked with our schedule and saved us hundreds of dollars. Those choices really add up," he said.
While shopping this season, use a single source of funds — like one designated credit card — to track all holiday spending, and keep a written list of what you're buying for each person.
“This prevents overspending and ensures you and your spouse aren't duplicating gifts,” Meese said. “It's eye-opening to see the numbers add up in real time."
Families with many kids, aunts, uncles, or cousins should consider drawing names so everyone receives a gift without everyone buying for everyone else, he continued.
“This keeps the spirit of giving alive while not breaking the bank," explained Meese.
The recent federal government shutdown forced many federal workers to cut spending in October and November, he said, which means receiving back pay feels like a windfall.
“Resist the urge to make up for the spending you didn't do during the shutdown,” said Meese. “Instead, apply that lump sum strategically. Pay down any debt you incurred, rebuild your emergency fund, or accelerate your longer-term savings goals. And consider setting aside a 'shutdown buffer' for the future, since these disruptions have become increasingly common."
Meese also urged veterans to begin a preliminary budget for 2026, so you don’t start the next year with less than you’re comfortable with.
Reach Julia LeDoux at Julia@connectingvets.com.