A military family’s guide to budgeting holiday spending early

Tamika Sherman Avatar

By Tamika Sherman

Posted on Sep 27, 2024 7:10 PM PDT

Reviewed By Tessa Robinson

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Steven Stanislow, second from left, gets help loading his shopping cart Dec. 21 during the Fort Riley, Kansas, Main Exchange $3,000 shopping spree. Stanislow, medically retired in 1999, was chosen as one of 40 winners, worldwide, and used the time to shop for family and friends before the Christmas holiday.
Steven Stanislow, second from left, gets help loading his shopping cart Dec. 21 during the Fort Riley, Kansas, Main Exchange $3,000 shopping spree. Stanislow, medically retired in 1999, was chosen as one of 40 winners, worldwide, and used the time to shop for family and friends before the Christmas holiday.

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The holiday season is a time for joy, togetherness and celebration, but it can also bring financial stress—especially for military families. With unique challenges like frequent relocations and variable incomes, preparing early for holiday spending is essential to avoid debt and maintain financial stability. By planning ahead, setting clear savings goals, and taking advantage of available military resources, you can make this holiday season memorable without breaking the bank.

Step 1: Create a Holiday Budget

The foundation of successful holiday financial planning is a solid budget. Start by determining how much you can realistically spend without putting your finances at risk. Your holiday budget should account for the following:

  • Gifts: Make a list of everyone you plan to buy gifts for, including family, friends, and colleagues. Set a spending limit for each person and stick to it.
  • Travel: If you’re planning to visit family or friends, factor in travel costs such as flights, gas, and accommodations.
  • Food and Entertainment: Food is often neglected when it comes to planning for holidays. Holiday meals, parties, and outings can add up quickly. Be sure to include these in your budget.
  • Decorations and Extras: Many families enjoy decking the halls, but holiday decorations can be an unexpected expense. Include these in your budget to avoid overspending.

Once you’ve outlined your expected expenses, compare them to your available funds. If your budget exceeds what you can afford, look for areas where you can cut back. For example, consider drawing names for a family gift exchange instead of buying gifts for everyone, or host a potluck dinner to share food costs.

Step 2: Set Savings Goals Early

Once you’ve established your holiday budget, it’s time to set savings goals. The earlier you start, the easier it will be to avoid last-minute financial stress.

  • Automate Your Savings: Set up an automatic transfer to a dedicated holiday savings account. Even small amounts, such as $25 per paycheck, can add up over time.
  • Cut Unnecessary Expenses: Look for areas in your current budget where you can reduce spending, such as eating out or entertainment. Redirect that money toward your holiday fund.
  • Use Sinking Funds: A sinking fund is a savings account designated for specific upcoming expenses, like the holidays. By contributing to this fund throughout the year, you’ll have a cushion ready for when holiday expenses arise.

Step 3: Take Advantage of Military Discounts

One of the many perks of military life is access to discounts during the holiday season. Many retailers offer special military discounts on everything from electronics to clothing, travel, and more. Here are a few ways to make the most of your military benefits:

  • Retailer Discounts: Stores like Target, Kohl’s, Best Buy, and many others offer military discounts. Before making a purchase, ask if the retailer provides a military discount or search online for deals. 
  • Travel Discounts: Many airlines, hotels, and car rental companies offer military discounts during the holidays. Check with USAA, Chase, or Armed Forces Vacation Club for travel deals.
  • Online Shopping: Take advantage of online retailers that provide military discounts, like GovX, which offers deals on a wide range of products specifically for military families.
  • Local Deals: Many local businesses near military installations offer holiday discounts to service members and their families. Check with your base for details on seasonal promotions.

Step 4: Get Creative with Gifts and Celebrations

Cpl. Amy Maulo, 544th Military Police Detachment, shops with the assistance of Cindy Simerly, wife of Maj. Gen. Mark T. Simerly, CASCOM and Fort Lee commanding general, during the Holiday Helper Association Open House held Dec. 9 at the organization’s toy store. Roughly 20 Soldiers -- with the assistance of Fort Lee command teams -- were provided the opportunity to shop at HHA's toy store during the event. HHA supports the families of more than 400 military active duty members and wounded warriors during the holiday season and beyond. (photo by T. Anthony Bell)
Cpl. Amy Maulo, 544th Military Police Detachment, shops with the assistance of Cindy Simerly, wife of Maj. Gen. Mark T. Simerly, CASCOM and Fort Lee commanding general, during the Holiday Helper Association Open House held Dec. 9 at the organization’s toy store. Roughly 20 Soldiers — with the assistance of Fort Lee command teams — were provided the opportunity to shop at HHA’s toy store during the event. HHA supports the families of more than 400 military active duty members and wounded warriors during the holiday season and beyond. (photo by T. Anthony Bell)

While it’s easy to get caught up in the pressure of buying expensive gifts, the most meaningful presents don’t always come with a high price tag. Here are some creative ways to give meaningful gifts and celebrate without overspending:

  • DIY Gifts: Handmade gifts, such as photo albums, baked goods, or homemade crafts, can be more personal and affordable than store-bought items. These gifts show thoughtfulness and care, without the high cost.
  • Shop Sales Early: Take advantage of sales like Black Friday and Cyber Monday. By shopping early, you can avoid the last-minute rush and get better deals on items.
  • Set Limits on Gift Exchanges: Agree on a spending limit for family gift exchanges or organize a Secret Santa to keep costs down. This way, everyone participates, but no one is overspending.
  • Potluck Gatherings: Instead of hosting expensive holiday parties, consider throwing a potluck where everyone contributes a dish. It’s an affordable way to enjoy time with loved ones while sharing the food burden.

Step 5: Use Available Financial Resources

Military families have access to several financial resources that can help with holiday spending. Whether you need budgeting help or financial advice, these services are available to help you stay on track.

  • Military OneSource: Offers free financial counseling to service members and their families. This can help you set up a holiday budget or work through other financial concerns.
  • Installation Personal Financial Management Program: Provides one-on-one financial counseling at military installations, helping you manage short-term and long-term financial planning.
  • MiMM (Military In My Move): Offers virtual learning experiences that provide financial training on budgeting, saving, and managing money during relocations and other life changes.
  • USAA & Chase: Both banks offer financial products tailored to military families, including low-interest credit cards, VA loans, and holiday savings accounts.

Plan Early, Stress Less

The holiday season can be both joyful and stressful, but by preparing early and sticking to a budget, military families can enjoy the holidays without financial strain. By creating a clear plan, setting aside savings, and taking advantage of military discounts, you’ll be able to give meaningful gifts and create lasting memories—all while keeping your finances intact.

This year, take the time to prepare for holiday spending so you can celebrate the season without the stress of overspending. Your future self—and your bank account—will thank you.