Video: UTA expert shares stress-free holiday spending tips
As the holiday season approaches, many Texans are feeling excitement mixed with anxiety about finances. Festive gatherings, travel plans and shopping trips are on the horizon, but they come at a time when costs for essentials like rent, groceries and gas are rising. For many, the question isn’t whether to celebrate, but how to do so without stretching their budgets thin.
To help navigate the season, Dilruba Moutusi—an assistant professor of instruction in The University of Texas at Arlington’s Department of Finance and Real Estate with a Ph.D. in personal financial planning—shares practical, research-based guidance on staying grounded, intentional and financially healthy during the holidays.
Q: How would you describe the overall financial mood as we head into the holiday season?
Dr. Moutusi: I think people are feeling both hopeful and cautious. They are very excited about the holidays, but at the same time, there are many families that are aware of the rising costs—from groceries to rent to travel. So they want to enjoy the holiday, but they are again very cautious about how and where to spend.
Q: With essentials like rent, groceries and gas costing more, how can families still set a realistic holiday budget?
Dr. Moutusi: The main purpose of the holiday season is not how much you are spending; it’s about the gratitude, the connection and the shared memories that you are building with your loved ones. So, probably this year it’s less spending and more with the shared experience.
Q: Black Friday and Cyber Monday make it tempting to impulse-buy. What are your best tips to avoid overspending during big sales?
Dr. Moutusi: Have a list and stick to it. Retailers design these sales in such a way it will make you feel like you are missing out on something. And before you hit the “buy” button, just wait 24 hours, and within this 24 hours, maybe it will curb out your impulse buying decision.
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Q: If people need to cut back this year, where should they start?
Dr. Moutusi: Start with the extras. For example, the decorations, expensive outing and multiple gift exchanges. You don’t have to cut out your joy; just reimagine it. For example, some Secret Santa exchange, potluck-style dinners, making something homemade—all of these can keep the holiday spirit up without draining on your wallet.
Q: What are the biggest money mistakes people make during the holidays?
Dr. Moutusi: The first one should be overspending because of emotion. We love to keep our loved ones happy, and we overspend, and that can sometimes put a financial stress during January. And the second one should be using the credit card way too much. We should use the credit card cautiously. Yeah, these two are the biggest mistakes that most people make during the holiday season.
Q: What’s the smartest way to avoid racking up high-interest credit card debt?
Dr. Moutusi: I would suggest using just one credit card for all your spending—that way it’s easier to track—and try to pay all the balances at the end of the month. And if it’s getting hard, then just go back to the debit card or cash, that way you are not going over your budget.
Q: “Buy now, pay later” options are everywhere. Are they a smart choice?
Dr. Moutusi: So they are tempting; they can be tempting, but you need to use them with caution. Because when you are using this installment option, it’s very easy to pile up because you can’t see the total spending upfront. These installments can pile up quickly. But if you are someone who is cautious and who knows how to use your money wisely, then you are fine. But if not, all these small installments can pile up very quickly, so you have to be very smart and cautious when you are using these options.
To recap, the holiday season is not about how much you spend, it’s actually about how much memories you are making with your loved ones. So just make a budget, stick to it, spend your money cautiously and enjoy your holiday.
Happy holiday, Mavericks.