For students, the start of the holiday season brings both festive fun ... and financial stress.
Preparations for the holidays seem to start earlier every year. Decorations are rolling onto store shelves and holiday clearance sales have already begun.
Bankrate’s 2025 Early Holiday Shopping Survey found that 49% of holiday shoppers began preparing for the season before the end of October.
For many students, that means making plans to go home for the holidays and budgeting for travel, gifts and other seasonal expenses.
A recent Gallup poll suggests that holiday spending is on the rise. The average amount spent on gifts this season is projected to be around $1000 per person. This figure is nearly identical to last year’s forecast, but up from about $920 in 2023.
Dr. Richard Patterson, associate professor of economics at BYU, said factors that can lead students to overspend around the holiday season include a sense of scarcity and impulse buying driven by stress.
Patterson advised students to counter these influences by creating lists of “needs” and “wants” before making purchases.
“One of the things I think can often lead to mistakes is that people forget about — or just aren’t thinking about — things that they need to do with their money when making individual decisions,” Patterson said.
By creating a budget, Patterson said students can better organize and prioritize their spending to make the most of their holiday expenses.
BYU students shared their efforts to prepare for the holiday season and offered advice on how to best manage the financial burdens this time of year.
Sophia Paris, a freshman from Seattle, Washington, said she has been tracking flight prices since she arrived on campus in August. Paris said she’ll have to miss a few days of class to fly home on cheaper travel days.
Kylee Flamm, a freshman from San Antonio, Texas, said she only goes home once a year because of high flight costs. When she does, she books red-eye flights because they’re less expensive.
Both Flamm and Paris said they are lowering their holiday expenses by focusing on giving thoughtful rather than expensive gifts.
“Homemade gifts are the way to go, 100%,” Flamm said.
Paris agreed. She said, “It’s the thought that counts with presents and with giving towards others because gifts can always be meaningful as long as they know they’re from the heart.”
Noah Draughon, a senior from North Carolina, said he doesn’t often go home for Thanksgiving because of travel costs. He plans to fly home over winter break, but booked his flight five months in advance and used airline points to keep prices low.
Draughon also believes focusing on thoughtful gift-giving is a good way to save money while still celebrating the season of giving.
“Going simple can be more meaningful sometimes, especially when it comes to getting gifts for siblings and friends and what not,” Draughon said. “You don’t have to go do something too crazy complicated to show that you care about another person.”
As the holidays approach, students continue to find creative ways to stretch their budgets without missing out on the joy of the season. Whether through careful planning, homemade gifts or early flight bookings, many are proving that celebrating meaningfully does not have to mean spending more.