Your Top December Money Questions Answered

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Each week, we answer money questions from around the web on the NerdWallet app. Here are three of the trending questions from the month of December.

How can I feel less guilty about spending money on non-necessities?

When you’re trying to stick to a budget, it’s easy to start questioning every non-essential expense. Do you really need that to-go coffee? What about a restaurant meal with friends?

In reality, leaving room for some splurges can make it easier to stick with a spending plan.

To stay on track without overly restricting yourself, first decide on some basic financial priorities. You might want to build up an emergency fund, pay off high-interest debt or set aside money for a future down payment, for example.

Then, give yourself an action plan for each goal. To build up an emergency fund, try automating savings from your checking account each month.

To pay off high-interest debt, try paying down the debt with the highest interest rate first (called the avalanche method) or the smallest debt first (called the snowball method).

To accumulate savings for a specific goal, you might want to shop around for a high-yield savings account with a good interest rate, and aim to put a certain amount into it each week.

As long as you are sticking to your plan and making progress, you can allow yourself to indulge in spending that helps make life more enjoyable — without any guilt.

How can I reduce my financial stress?

Just over half of Americans (51%) say they regularly stress out about money, according to a NerdWallet survey. So if you’re feeling financial stress, perhaps there’s comfort in the fact that you’re not alone.

To alleviate some of those concerns, focus on what’s in your control. Take a deep dive into your cash flow so you know where the money is going.

From there, consider how to improve your financial stability.

First, do you have an emergency fund? While financial experts often recommend saving three to six months’ worth of expenses, any kind of buffer for unexpected expenses can provide peace of mind. Consider starting small and working your way up from there.

Next, tackle any high-interest debt. If you have credit card payments, personal loans or other forms of debt, make a plan to pay it off.

Then, consider building up savings for other goals. Perhaps you want to save for a vacation or down payment. You could set aside savings in a high-yield savings account for short-term and medium-term goals so it’s easier to make progress toward those objectives.

You might also want to put more money toward long-term goals, such as retirement savings and other investments.

Finally, continue to invest in yourself by reading about personal finance and using personal finance apps. These tools can give you greater control over your financial future while reducing feelings of uncertainty and stress.

How can I give better gifts for less money?

Giving gifts without going over budget is a big challenge — especially during the holiday season. But there are simple strategies that can help.

Start by making a plan. Write down all of your gift recipients and the budget for each one to get a ballpark spending limit. From there, you can brainstorm gift ideas.

AI platforms like ChatGPT, Google Gemini or Claude can help generate gift ideas on a budget. Enter a prompt like, “Can you share some gift ideas for a teenage boy that cost $25 or less?” to generate on-budget suggestions. Follow up by asking for specific links to products.

After you have your shopping list, track prices using browser extensions like PayPal Honey and the Camelizer. Then, when discounts hit, you’ll be able to snag the deals.

Inserting some of your own creativity into the gift giving process can also make it easier to spend less. Do you like to grow flowers? Try drying them to make bouquets. Can you cook or bake? Offer someone a tasty homemade treat.

Sometimes, personal gifts cost less, but mean more. Creating a photo collage, writing a song with meaningful lyrics or buying an accessory that reflects someone’s hobby can all be relatively inexpensive — yet impactful — gifts.

The key is to plan ahead to avoid feeling rushed. Buying last-minute often leads to impulse purchases and overspending. Try to start soon and take your time.

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