“For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life” (John 3:16, NIV). One of the beautiful traditions of the Christmas season is giving gifts to those we love, reflecting the generous gift God gave us in Jesus.

While gift-giving is a wonderful expression of love and joy, it can easily become problematic when it leads to debt or financial strain. During the holiday season, many people overspend, often going into debt—not necessarily out of love for God, but due to emotional spending, materialism, or the pressure to keep up with others. In some cases, the desire to provide children with the gifts they didn't have growing up can also lead to overspending. Unfortunately, studies show that many individuals are still paying off their holiday debt well into the new year.

So, how can you celebrate Christmas through meaningful gift-giving without the burden of debt? Here are some practical steps to help you stay on track:

1. Set Your gift budget.

Start by reviewing your finances to determine how much you can comfortably spend on gifts without straining your budget. This should be an amount you can pay in full with cash, not on credit. Set a "big number" for your total gift budget—it will serve as your guide throughout the planning process.

2. Make a gift list.

Create a list of everyone you would like to buy for this year. This should include immediate family, extended family, friends, coworkers—anyone you plan to give gifts to. Don’t leave anyone out at this stage. If you're married, check with your spouse to ensure you both agree on the list of recipients. By the way, if you have gone through the 8 Money Milestones program, you can find a form in the back of the workbook to help you with this.

3. Assign a budget for each person.

Once you have your total gift budget, decide how much you can spend on each person. Write down a specific dollar amount next to each name on the list. The total of all these amounts should equal your "big number." As you go down the list, you may find yourself wanting to spend more on certain people, which may require reducing or eliminating gifts for others.

4. Be comfortable with a smaller list.

It’s okay to prioritize certain people over others when it comes to gift-giving. There is no need to buy a gift for everyone on your list. If you have to place a $0 next to some names, that’s perfectly fine. Focus on those who matter most to you, and for others, consider creative, meaningful gifts that don’t require spending money—such as homemade items, heartfelt notes, or acts of service.

5. Track your spending.

As you purchase gifts, keep track of how much you're spending on each person. This will help you stay within your budget. Once you've hit the amount allocated for each person, stop spending on them. Tracking your spending ensures you remain intentional about the gifts you're choosing.

6. Stay within your total budget.

It’s easy to get carried away when buying for loved ones, so make sure the total amount spent doesn’t exceed your initial budget. If you find yourself overspending on some gifts, you'll need to cut back on others to stay within the overall limit.

7. Wrap and give your gifts.

Once your gifts are purchased, wrapped, and ready to go, enjoy the process of giving. The best part of the holidays is the joy of sharing with others—knowing that you’ve made thoughtful choices without the stress of overspending.

8. Celebrate a debt-free Christmas.

Congratulations! By sticking to your budget, you've given yourself the gift of a debt-free holiday season. Now you can enjoy the Christmas season, focused on the true meaning of the holiday, without the financial stress that can linger long after the festivities end.

Remember, the most important gift we can give this season is not necessarily something we buy, but pointing others to the One who gave everything. By staying within your budget, you can experience the true meaning of Christmas—celebrating with a heart of gratitude, free from the burden of holiday debt.