How to budget for the holiday season, according to a financial expert

Shoppers pass near a Christmas tree display at the Von Maur store at the Oxmoor Mall on December 22, 2023 in Louisville, Kentucky.
Jon Cherry/Getty Images

November 24, 2025, 12:54 PM

PayPal is a sponsor of "Good Morning America."

While the holiday season can bring a lot of excitement, shopping for it can create a lot of stress -- on your mind and on your budget.

Nicole Lapin, a financial expert and bestselling author, is here to help you stay on budget using tools such as PayPal to both maximize savings and earn rewards.

Start with a realistic 'holiday number'

PayPal reports that 60% of shoppers "feel more financial stress heading into this holiday season," so Lapin recommends breaking down your budget into two parts, "before" and "after."

"Before the holidays, try 50% for gifts and gatherings, 30% for travel and experiences and 20% for extras that always come up," Lapin tells "Good Morning America." "After the holidays, flip the focus to rebuilding: 50% to savings, 30% to paying off balances, and 20% to small treats that keep you motivated."

Make your money moves predictable

Find peace of mind with PayPal's Buy Now, Pay Later. There are two ways to pay: Pay in four interest-free, biweekly payments, or opt for a monthly payment plan. Buy Now, Pay Later is available at millions of stores. Brands include The Home Depot, Lands' End, Samsonite, Apple, Best Buy and more, so you can shop for both you and all of your loved ones.

"Options like Buy Now, Pay Later take the guesswork out of budgeting," Lapin says. "You know what's coming, when it's due and how it fits into your larger holiday spending plan."

Get $15 off purchases of $45 plus when you pay with Venmo on TikTok Shop, running from Nov. 18 to Dec. 8. Offer is available to any TikTok Shop user.

Plan ahead to make the most of IRL shopping magic

According to PayPal, 41% of shoppers are planning to shop both online and in-store, with 28% planning to shop primarily online, "underscoring that no single channel dominates the holiday experience."

And shoppers are on the hunt for rewards. "Rewards drive decisions where Americans shop as 74% are more likely to shop with merchants offering cash back or rewards," PayPal reports.

As you shop, Lapin emphasizes the importance of price-checking to ensure you're getting a good deal.

"There is nothing like the nostalgia of a decked-out mall or department store, but don't let the twinkle lights distract you from price-checking," Lapin says. "Some retailers offer different prices in-store versus online, so a quick search before you buy can save you big. And with PayPal's Pay Monthly now available in-store, you can spread the payments for those bigger purchases."