Tariffs, Turmoil, and Tinsel

For many, the holidays are a time to celebrate traditions, connect with loved ones, and give a little joy. But in a year marked by economic uncertainty, rising costs, and global shifts that feel far outside our control, it’s understandable if your seasonal spirit feels a little more tense.

From higher prices on imported goods due to new or ongoing tariffs, to overall inflation still impacting everyday essentials, this holiday season may require more planning and flexibility than in years past. But don’t worry. You may still create a meaningful, joyful holiday without breaking your budget.

Here are 10 tips that may help you navigate the tinsel and turmoil with confidence, clarity, and a touch of creativity.

1. Understand What’s Driving Costs Up

This year, it’s not just your imagination that things cost more. Many holiday staples, from electronics to toys to decorations, are more expensive.

Here are a few reasons why:

• Tariffs on imported goods mean higher costs for items like appliances, technology products, tools, and clothing.
• Supply chain disruptions and global conflict could increase shipping delays and limit product availability.
• Inflation may continue to increase the baseline prices of food, fuel, and household goods.

Understanding the “why” behind the prices won’t lower them, but it may help you plan more realistically and spend more intentionally.

2. Start Shopping Early (If You Haven’t Already)

Economic pressure tends to compress demand into smaller windows. That means prices may spike closer to the holidays, and the most popular items may sell out faster than expected.

By shopping early, you might avoid price hikes that are often caused by peak demand or shipping costs. Being ahead of the game gives you time to compare prices and shop smarter. And most of all, it might avoid the risk of last-minute impulse buys.

You don’t have to finish your list overnight. Even knocking out one or two gifts off your list early may be part of your strategy to manage spending and your mental attitude.

3. Reimagine Gift-Giving

During uncertain economic times, meaningful doesn’t have to mean expensive. This is a great year to revisit what giving looks like for you and your family. You might try gift exchanges with spending caps, giving one "big gift" per person instead of several small ones, or opt for homemade or experience-based gifts. Using your clever imagination, you may be able to do a lot with a little.

Setting realistic expectations with family and friends may help overcome disappointment and bring the holiday focus back to connection rather than consumerism.

4. Create a Holiday Budget and Actually Use It

In times of financial uncertainty, a clear budget could be a holiday tradition you adopt.

To get started, list your total holiday spending limit (gifts, travel, food, decorations, etc.). Then, break it down into categories: gifts, events, meals, shipping, and other categories. Track what you’re spending as you go. Using a simple spreadsheet or budgeting app is usually helpful to stay on track with your budget.

Knowing your limits helps you stay in control, so the joy of the season doesn’t turn into a January filled with higher credit card balances and regret.

5. Use Smart Shopping Tools and Strategies

Stretching your dollar further may not mean sacrificing quality. It could mean shopping smart. For example, for extra savings, you may use cashback and rebate apps (like Rakuten, Honey, or Ibotta).. You could sign up for store email alerts to access exclusive early sales or receive special coupon codes, and then compare prices across sites before committing to a purchase.

Watch for price-matching policies or post-purchase price adjustments. And always consider gently used or refurbished items—especially for electronics, tools, and toys. Even a few dollars saved per gift may add up when you’re shopping for multiple people.

6. Prioritize Presence Over Presents

If finances are tight this year, remember that how you show up matters more than what you show up with.

Host a low-key gathering. Invite friends over for hot cocoa and a holiday movie. Share memories and stories instead of stuff. In challenging times, your time and attention are worth more than anything you may wrap in paper.

7. Plan for Holiday Meals on a Budget

Food inflation remains a challenge in many areas, and big holiday meals may feel overwhelming when prices rise. Some money-saving strategies include potluck-style dinners, where you invite guests to each bring a dish. You may also buy frozen instead of fresh for side dishes, desserts, and even proteins. They may cost less and last longer.

The memories you create around the table matter more than the menu.

8. Rethink Travel Plans

If holiday travel feels financially out of the question this year, it’s okay to pivot. Plan virtual celebrations with out-of-town family and friends. Travel locally—a day trip or staycation may still offer that “holiday getaway” feel. And delay travel to off-peak times (late January or early February), when prices tend to drop and schedules are more flexible.

Many people are adjusting their traditions in light of the economy, so you’re not alone.

9. Keep Kids in the Loop (Without Stressing Them Out)

If you’re worried about spending less this year, it’s okay to share that strategy with your kids in age-appropriate ways.

Focus on setting expectations early, such as saying, “We’re doing one big gift this year instead of lots of little ones.” You may also involve them in creative projects like handmade gifts for a secret Santa gift. And be sure to always emphasize the season’s values: kindness, gratitude, giving, and time together. Kids remember how the holidays feel more than what they received.

10. Focus on What You May Control

You cannot control the economy, tariffs, or the price of imported electronics—but you have the choice to control how you respond.

Here are things to consider:

• Set boundaries with your spending.
• Prioritize your needs and nurture your mental health
• Choose thoughtful ways to give that don’t drain your resources.
• Seek joy in traditions, community, and simplicity.

Even in the face of financial pressure, a meaningful holiday is still possible because the heart of the season is more than just money.

Final Thoughts: Resilience Wrapped in Ribbon

Yes, this year’s holiday season may look a little different. There may be fewer gifts under the tree or simpler meals on the table. However, there could also be a more intentional spirit, shareable creativity, and the possibility of making stronger connections.

Don't forget to work with your financial professional for a year-end review. They may have some money-saving ideas to share.