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Avoid These 8 Holiday Shopping Traps That Can Cost You Hundreds

Keep more money in your wallet this holiday season.

By Michelle Smith

Edited by Andrea Basse

Updated Dec. 12, 2025

The holiday season can be the most wonderful time of the year, especially when family and friends surround you. But it can also be stressful — particularly if you're worried about your budget. Buying presents, planning big meals, and traveling to see loved ones add up fast. If you're not careful, holiday spending can spiral out of control, making it harder to keep more cash in your wallet and leaving you in financial trouble before the first gift is unwrapped.

Fortunately, learning about some of the most common holiday-shopping pitfalls is the first step toward avoiding them this season. Keep reading for tips that can help ensure you end the year with your budget safely in the black.

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Putting everything on a credit card without having a set budget

Shopping with a credit card isn't an inherently bad thing, especially if you pay off balances on time and take advantage of cashback rewards. But it can be tempting to overspend on credit and tell yourself you'll deal with the deficit once the holidays are over and you have fewer financial demands. From there, it's all too easy for your debt to spiral once your interest rate kicks in.

If you want to build credit or benefit from rewards by shopping on credit, make sure you set a fixed budget beforehand. Don't spend more than you can reasonably pay off before your next payment deadline, and you'll be in good shape.

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Subscriptions that turn into recurring monthly expenses

Did you sign up for free trials to take advantage of short-term savings? Don't forget to cancel before the subscription renews. Yes, that 30-day Amazon Prime free trial lets you ship presents across the country at no cost, but if you fail to cancel in time, you could end up paying far more than what you saved on shipping costs in monthly subscription fees.

Rush purchases

The longer you wait to shop for everyone on your list, the higher the risk that you'll accrue fees you can't avoid. Overnight shipping gets expensive fast, and there's always the risk that a store will increase its prices at the last minute (after all, desperate last-minute shoppers don't need sales that persuade them to buy — they just need a gift before they run out of time).

The earlier you shop for the holidays, the more money you'll save on rush-related fees, and the greater the odds will be that your loved ones receive their gifts from you on time.

Buying more just because things are on sale

Yes, sales can help you save money on everyday items. But if buying two items at a discount costs more than buying just one of the same item at a regular price, you haven't saved money at all. Instead, you've overspent.

When you get excited about a sale, ask yourself if you're buying something useful or necessary, or if you're feeling the urge to spend just because something seems like a good bargain. In the latter case, put the item back on the shelf for now.

Ignoring price-matching policies

Doing your research and comparing prices can be a hassle during the busy holiday season. However, the payoff can be worth the extra time if you're able to score a discount at a store with a price-matching policy. (Even better, you don't have to go through the hassle of returning a product, which often means paying for shipping, just to purchase the same item a second time at a lower price.)

Overspending on gift cards

Gift cards can make great gifts, but it can be easy to fall for an upsell (for instance, spending an extra $100 to get a $20 gift card). Make sure to crunch the numbers before deciding if spending all that extra cash is really worth it, especially if it's for a store you or your loved one shop at infrequently at best.

Don't Miss: 9 ways to tackle high grocery costs you won't hear about from your grocery store

Not checking return policies

You might think you've found the perfect holiday gift, only to realize too late that your grandchild, niece, or nephew already has the present you bought. Depending on the return policy, you could be permanently stuck with an item you don't need and no hope of recouping the lost cost.

Before you make any purchases this season, especially anything pricy or electronic, check the store's return policy to make sure you can bring it back as needed. And hang onto that receipt no matter what.

Doing whatever it takes to qualify for free shipping

It's common to see pop-up banners telling you to spend just $20 more to qualify for free shipping. But if shipping the items in your current cart costs $10, that "free" shipping is actually double what it's worth. Before tacking on another $20 worth of goods, check the actual shipping price. You might be surprised to find it's lower than you thought.

Bottom line

New Year's resolutions are a great way to set your intent for the upcoming year, but you don't have to wait until January to start making wise financial decisions. Instead, you can end the year on a strong note by avoiding the spending pitfalls we listed here, which is a smart way to save money before the new year even begins.

And remember that the best gift you can give your loved ones isn't always something you buy in a store. Your time, attention, and care are all they really need — and the ones who love you best will want to spare you the stress that comes from overspending.

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