The holiday season is a time for celebration and togetherness, but it can also bring financial pressure.

With credit card debt on the rise and inflation affecting prices, many Americans struggle to manage their spending while trying to meet family expectations and social obligations.

According to Dr. Marketa Wills, CEO of the American Psychiatric Association, the pressure to buy gifts and attend events can add significant stress. But there are ways to navigate the season without overspending. Here are expert recommendations to avoid financial stress this holiday season:

1. Start with a Budget

Setting a spending limit is essential to avoid overspending on gifts. Matt Watson, CEO of financial planning app Origin, suggests you determine your budget before you start shopping. This way, you can avoid impulse buys and the temptation to justify unnecessary purchases. Don’t forget to factor in taxes and shipping costs when setting your budget.

2. Manage Expectations with Loved Ones

If your family has high expectations for gift-giving, it’s important to set realistic expectations. Watson recommends having an open conversation about your financial situation, especially if you're dealing with debt or tight finances. Sharing this with loved ones will help them understand that low-cost gifts or activities are a better fit for your current budget.

3. Don’t Wait Until the Last Minute

Planning ahead is key to sticking to your budget. Watson advises starting your holiday shopping early to avoid last-minute purchases that could lead to overspending, especially as shipping costs tend to rise closer to Christmas. By buying items gradually over time, you can divide costs among paychecks and avoid relying on credit cards for last-minute purchases.

4. Get Creative with Gifts

Homemade gifts can be just as meaningful as expensive store-bought items. Wills encourages people to offer practical help, such as cooking a meal, babysitting, or running errands. These thoughtful gestures are low-cost alternatives that can reduce financial pressure and enhance the holiday spirit.

Shopping expert Trae Bodge also suggests gifting experiences, such as ice skating, hiking, or hosting a potluck. These activities not only create lasting memories but also keep costs low.

5. Create Your Own Traditions

Let go of societal pressures or family traditions that require extravagant spending. Bodge explains that trying to keep up with the “Joneses” can lead to unnecessary stress. If you’re not in the same financial position as some family members, don’t feel obligated to return expensive gifts.

Instead, focus on creating your own traditions that align with your financial goals, such as saving for a house or paying off debt. Share these goals with loved ones to help them understand your need to limit expenses.

6. Divide Spending Responsibilities

When hosting gatherings, consider sharing the costs with others. Wills suggests proposing a potluck-style holiday meal where everyone brings a dish to reduce the financial burden. By sharing the responsibility, you can enjoy a festive gathering without the stress of covering the entire cost.

7. Communicate Your Feelings

If you're struggling with financial stress, don’t hesitate to talk to your family and friends about it. Wills notes that sharing your concerns can be therapeutic and help relieve some of the pressure.

Equally important is being there for your loved ones and listening to their concerns, creating a supportive environment during the holidays.

8. Don’t Be Afraid to Say No

It’s easy to get overwhelmed by invitations to holiday events, but if attending them is causing financial stress or affecting your mental health, it’s okay to decline. Wills encourages you to prioritize your well-being and set boundaries by saying no when necessary.

By following these expert tips, you can navigate the holiday season without overspending and ensure that the focus remains on enjoying time with loved ones, not financial strain!