The holidays bring joy, love, and plenty of spending. It’s easy to get caught up in sales, decorations, and gift-giving. But when January comes, no one wants to face a drained bank account or a growing credit card balance. Before you buy anything this holiday season, slow down and think first. 

With a few smart habits and the right mindset, it will help you enjoy giving without overspending. Financial expert Suze Orman offers a simple three-question test that helps you stay thoughtful and responsible when making purchases.[1] These questions can help you decide if something is worth your money.

Avoid Overspending This Holiday Season

Overspending during the holidays can happen fast. Between travel, gifts, food, and decorations, small purchases add up. Many people plan to spend a certain amount but end up paying much more once the season is over.

A clear holiday budget can make a big difference. Set a limit before you start shopping and track every purchase. You can use a notebook, a budgeting app, or a simple spreadsheet. Write down the total amount you can spend, then divide it between gifts, food, and other expenses.

If you tend to dip into savings or rely on credit cards, consider opening a separate savings account for your holiday fund. This can help you stay organized and avoid spending money meant for other goals. You may also want to set up automatic transfers from your checking to savings. This way, you can build your holiday budget little by little.

Recommended: Christmas Budget Template To Cut Your Holiday Overspending

Three Questions To Ask Before Making a Holiday Purchase

Before you buy, ask yourself three questions. These come from Suze Orman’s “Will Your Holiday Spending Pass This 3-Question Test?” and they can guide your spending choices all year long.

Is It Kind?

This question may sound simple, but it helps you focus on the heart of giving. A kind purchase should bring true joy to the person receiving it. Ask yourself if the gift shows thought, care, or appreciation.

Sometimes we buy gifts out of guilt or pressure. But real kindness doesn’t have to cost much. You might bake cookies for a friend, frame a favorite photo, or write a heartfelt note. These gestures often mean more than expensive gifts.

When you focus on kindness instead of cost, you give with purpose. You’ll also feel better knowing your money supports moments that matter.

Is It Necessary?

This question helps you tell the difference between wants and needs. Holiday marketing can make every deal feel urgent, but many items are not truly needed. Before you buy, ask if the purchase adds real value to your holiday or if it’s just a short-term thrill.

For example, do you need a new set of lights when last year’s still work? Could you reuse decorations or borrow from family? Asking what’s necessary keeps your budget steady and your mindset grateful.

If a purchase still feels important, try waiting 24 hours before buying. That pause gives you time to think. Often, the urge to buy fades away once the excitement passes.

Is It True?

This question asks you to be honest with yourself. Are you buying to show love, or to impress others? Is this something you can afford right now? If a purchase doesn’t fit your budget, it’s not true to your financial goals.

Many people buy gifts on credit with the plan to pay later, but debt can create stress that lasts long after the holidays. Instead, spend within your means and stick to your plan.

If you want to see how your spending affects your finances, try using Centier’s loan balance calculator. It can help you understand how interest adds up and why it’s better to avoid unnecessary debt.

Being true also means accepting that “more” isn’t always better. A meaningful, low-cost gift given with care often has more value than something expensive bought under pressure.

Other Strategies To Help You Avoid Overspending This Holiday Season

Along with asking these three questions, there are other easy ways to save money and reduce stress during the holidays. 

Some things you can do to stay on budget are:

• Plan ahead. 

• Use cash or debit. 

• Set spending limits. 

• Get creative. 

• Track sales carefully. 

Start your shopping early to avoid last-minute purchases that often cost more. Keep in mind, if you pay with cash or a debit card, it can help you stay aware of your budget. Decide how much you’ll spend on each person before you shop. 

Moreover, homemade gifts, shared experiences, or group contributions can cut costs and still feel special. Remember that just because something is on sale doesn’t mean you need it. Finally, compare prices and avoid impulse buys.

Another smart move is to build a separate holiday savings account each year. Deposit small amounts throughout the year so you have money ready when the season arrives.

Certificates of deposit (CDs) and high-yield savings accounts can help you grow your savings safely. Plus, with these accounts, you can keep your holiday fund separate from everyday spending. 

You might also like: Last-Minute Christmas Gift Ideas for Someone Who Has Everything 

Shop Smart This Holiday Season with Centier

The holidays should bring joy, not financial stress. By asking yourself three simple questions, “Is it kind? Is it necessary? Is it true?” You can make every purchase with care and confidence.

When you focus on what truly matters, you’ll give gifts that mean more and protect your financial future at the same time. With the right tools and planning, it will help you enjoy a joyful, debt-free season that reflects the true spirit of giving. 

To start saving for next year’s holidays, open a savings account with Centier Bank today. 

Source: 

[1]  https://www.suzeorman.com/blog/will-your-holiday-spending-pass-this-3-question-test