The holidays hit different when you’re just starting your career. Between student loans, entry-level salaries and the pressure to keep up on social media, Gen Z faces unique money challenges that make holiday spending especially tricky. You’re already dealing with inflation, sky-high rent and trying to build financial independence from scratch. The last thing you need is holiday debt that follows you into the new year.
Find Out: Here’s How to Build an Emergency Fund Without Blowing Your Budget
Read Next: How Far $750K Plus Social Security Goes in Retirement in Every US Region
But with some strategic moves, you can enjoy the season without sacrificing your financial future. Here are five money moves Gen Z should make before holiday spending begins.
The biggest mistake is setting a holiday budget based on what you wish you could spend rather than what you can actually afford. When you’re making $35,000-$50,000 annually, every dollar counts.
Start with your actual take-home pay and subtract all your fixed expenses: rent, student loans, car payments, subscriptions and basic living costs. Whatever’s left is your discretionary spending for the entire month, not just holidays.
A realistic approach might mean spending $200-$400 total on holiday gifts, travel and entertainment instead of the $800+ that social media makes seem normal. Use apps like Mint, YNAB or even a simple spreadsheet to track exactly where your money goes. Seeing the numbers makes it easier to stick to realistic limits when holiday FOMO kicks in.
Learn More: Here’s Why Gen-Z is Embracing Frugal Living According to Brian Jung
Most financial advice says to start saving for holidays in January, but that doesn’t help when you’re reading this late in the year. The good news is that even small amounts add up when you’re creative about finding them.
Look for money you can redirect for the next few weeks. Skip dining out twice a week and cook at home — that’s easily $60-$80 weekly. Cancel one subscription you barely use for $10-$15 monthly. Sell items you don’t need on Facebook Marketplace, Depop or Poshmark.
And finally, set up automatic transfers for any amount you can manage. That money won’t feel like much in the moment but will majorly add up before the holidays.
Your phone can either enable overspending or help prevent it. Set up tools that work with your digital-native habits rather than against them.
Enable spending notifications on your banking apps and credit cards. Get alerts when you’re approaching budget limits or when specific types of purchases are made. Use apps like Honey or Capital One Shopping to automatically find coupon codes and compare prices before buying anything online. These tools can save 10%-20% on purchases you’re already making.
