Naughty vs. nice 2026 holiday financial habits: Which list are you on?

The holidays can mean falling into bad financial habits, from impulse shopping and overspending to overlooking January bills. This guide shares practical ways to build better financial habits during the holidays so you can enjoy the season while making thoughtful choices for the new year.

Key takeaways:

• Create a holiday budget for gifts, travel, entertaining, and other seasonal expenses.

• Think before you buy and be aware that sales or impulse purchases can derail your spending plan.

• Consider the full cost of credit or financing, including payments, fees, and terms.

• Plan beyond December by keeping January bills, savings goals, and unexpected expenses in mind.

The holidays are a time for family, feasts, and festivities, but they also put your budget to the test. Between gift shopping, travel, entertaining, and tempting sales, it’s easy for healthy financial habits to take a back seat. 

That’s why the holiday season is a great time to take a closer look at your good and bad financial habits. Are you planning your spending before you shop? Comparing prices? Thinking about upcoming bills before making a big purchase?

Or are impulse purchases, overspending, and I’ll-figure-it-out-later decisions creeping into your holiday routine?

Think of it as your financial naughty-or-nice list. Avoiding spending altogether isn’t always possible, but making thoughtful choices can help you enjoy the holidays without creating unnecessary financial stress in the new year.

What naughty financial habits should you avoid during the holidays?

Holiday spending can add up quickly, with 37% of consumers racking up holiday debt last year. Recognizing bad financial habits makes it easier to replace them with healthier ones and stay out of the hole.

Shopping without a budget

It’s easy to start holiday shopping with one number in mind and end up spending much more. A few extra gifts, a holiday dinner, decorations, travel expenses, and last-minute purchases can quickly push your spending beyond what you planned.

Get on the nice list: Set a holiday spending limit before you start shopping and stick to it. Include gifts, travel, food, entertainment, and other seasonal expenses. Then keep track of what you spend as you go.

A budget doesn’t mean you have to skip the things you enjoy. It simply gives you a clearer picture of what you can comfortably afford.

Treating every sale like a must-buy

Holiday promotions make almost anything feel like a bargain. But saving 30% on something you didn’t need still means spending money you didn’t plan to spend.

Get on the nice list: Ask yourself whether the purchase was already on your list and whether it fits your budget. Compare prices, check shipping costs, and review return policies before you buy.

If you’re shopping online, be cautious about unfamiliar sellers and offers that seem too good to be true. The Federal Trade Commission recommends researching sellers and checking for complaints or reviews before buying.

Making impulse purchases

Limited-time offers, countdown clocks, and fear-of-missing-out (FOMO) messages are designed to encourage quick decisions. Impulse purchases may seem small individually, but several unplanned purchases can noticeably dent your holiday budget.

Get on the nice list: Give yourself a moment to think. Add an item to your cart and come back later. If you still want it, need it, and can afford it after giving yourself some time, you can make a more intentional decision. A gift list can also help you stay focused when holiday shopping gets hectic.

Forgetting about January

December spending doesn’t disappear when the holidays end. Your regular bills will be there in January, along with any holiday purchases that you’re still paying for. If you spend too much in December, you could start the new year with less money available for everyday expenses and financial goals.

Get on the nice list: Think about your January budget before making larger holiday purchases. Leave room for regular bills, upcoming expenses, and savings goals. Planning ahead helps prevent a holiday spending hangover.

Ignoring the cost of borrowing

A monthly payment can make a purchase seem easier to fit into your budget, but it's only one part of the greater financial picture. Before using a credit or financing option, consider the payment amount, payment schedule, fees, interest, or other costs, and the total amount you may pay.

Get on the nice list: Read the terms carefully and make sure the payment fits comfortably alongside your existing expenses. If you’re considering lease-to-own financing from Snap Finance, the specific product and terms can vary by retailer and location. 

What are some good financial habits to practice during the holidays?

Good financial habits aren’t about saying no to everything. They’re about making spending decisions that match your priorities and budget. Here are a few habits worth putting on your holiday nice list.

Make a list before you shop

Before you open your favorite shopping app or head to the store, make a list and check it twice. Write down who you’re shopping for, what you plan to buy, and how much you want to spend. You can also create separate amounts for travel, food, entertainment, and other holiday expenses. Having a plan may make it easier to avoid adding unnecessary purchases to your cart.

Compare prices

Seeing a sale sign doesn’t necessarily mean you’re getting the best deal. Compare prices from different retailers and consider the final cost, including shipping and other fees. For larger purchases, take a little extra time to research the product and retailer.

If you’re shopping online, use reputable retailers and be careful with unfamiliar websites or sellers. Always keep receipts and order information in case you need to resolve a purchase issue.

Know your needs and wants

Holiday shopping can make it difficult to separate what you need from what you simply want. That doesn’t mean wants are bad. It just helps to recognize the difference.

For example, replacing a broken appliance may be necessary, while upgrading a working appliance may be something you want. Understanding the difference allows you to prioritize purchases when your budget is limited.

Keep savings goals in mind

It can be tempting to put savings on hold during the holidays and promise to start again in January. If your budget allows, consider continuing to contribute toward your savings goals, even if you temporarily reduce the amount. Small, consistent contributions can help you maintain the habit.

And if you’re investing for longer-term goals, remember that investments involve risk. Stocks, index funds, and other investment products can lose value, and diversification doesn't guarantee you won’t experience losses.

Leave room for surprises

Holiday plans don’t always go exactly as expected. A flight may cost more than anticipated, your car could need a repair before a long road trip, or you might need to purchase an unexpected gift.

If possible, leave some wiggle room in your budget for surprises rather than assigning every dollar to planned purchases.

How can you build better financial habits after the holidays?

Your financial habits don’t have to end with the holiday season. Once January arrives, take a few minutes to look back at your spending. Which purchases were planned? Where did you overspend? Were there expenses you forgot to include?

Use those answers to make your next holiday season easier to plan. January is also a good time to review recurring expenses, update savings goals, create a debt repayment plan, and find areas to cut unnecessary spending.

Stay on Santa’s nice spending list

The holidays don’t have to be a choice between enjoying the season and protecting your budget. Putting your financial habits on the nice list enables you to spend with more intention. Recognizing bad financial habits helps you avoid decisions that create financial pressure later.

Make a spending plan, create a shopping list, compare prices, and think twice about impulse purchases. If you use credit or financing, understand the terms and make sure the payments fit your budget.

If you’re considering a purchase you’d like to pay for over time, Snap Finance offers lease-to-own financing options that let you shop for what you need now and pay later.

Ready to learn more? Learn how Snap Finance works and find participating retailers online or near you

Keep the good habits going with these related resources:

• Season of savings: Smart tech deals you can finance for yourself this holiday

• Shop smarter, not harder: Tips to make the most of your Labor Day shopping

• Seasonal budgeting: Cover holiday shopping without credit card debt

The advertised service is a lease-to-own agreement provided by Snap RTO LLC. Lease-to-own financing is not available to residents of Minnesota, New Jersey, and Wisconsin.