Jeff Smith of The Retirement Smith outlines simple steps families can take now to reduce stress, avoid holiday debt, and start 2026 financially stronger
FREDERICKSBURG, Va. (December 8, 2025) – December is often a challenging month for many families, as they face the holiday gift-giving season, as well as the end of the tax year. The steps people take this month will impact how they feel financially and mentally when January rolls around. The good news is that there are steps that can soften the blow and even help ensure people thrive financially in 2026.
“This month is going to be crucial to whether people dive or thrive when the next year starts,” said Jeff Smith, a financial planner and owner of The Retirement Smith. “It’s best to be proactive and intentional in what you do this month when it comes to finances, so you don’t feel stressed out and buried in debt going forward.”
According to the National Retail Federation, people will spend around $1.01 trillion this holiday season, pushing holiday spending to an all-time high. The problem, however, is that a lot of what will be spent will become debt for families in the New Year. The Journal of Consumer Research reports that 17 percent of Americans are still managing debt from last year, and 57% of consumers say they are willing to go into debt to make their loved ones happy this holiday season.
The problem with going into debt this holiday season is that it piles on the interest, leading to even more money being spent and a lot of stress. And as we all know, financial stress can later lead to health and relationship issues. The better route for families is to take steps to avoid such pitfalls and instead set the family up for a little more financial freedom (and likely less headache and stress).
Here are some expert-backed must-do money moves to make before year-end:
- Avoid January Money Hangover. Many people have good intentions regarding holiday spending and set a budget within their means. Yet according to the Journal of Accountancy, one in four Americans has a holiday budget and still goes over it, and 39% end up regretting going overboard on spending. Make a realistic plan and budget for the holiday and stick to it to avoid issues in the months that follow.
- Max Out Tax Advantage Accounts. To help reduce the family’s tax burden, be sure to contribute as much as possible to tax-advantaged accounts. This means maxing out contributions to all contribution accounts, including IRAs. This will keep you from paying less in taxes.
- Reduce Stress. The holidays are a stressful time, and when people feel stressed, they tend to spend more, eat more, and exercise less. This is the exact opposite of what will help people feel better. This month, don’t skip exercise, stress-reducing activities, and staying healthy. Get enough sleep, eat healthy, and be physically active. This will go a long way toward reducing stress and holiday overspending.
- Commit to a Financially Stronger 2026. Now is the time to commit to having a healthy financial situation in the coming year. It’s important to realize that December will help lay the foundation for the economic crisis in the coming year. Making wise choices now will pay off in the coming months.
- Donate to Charity. By donating to charity, people can still get into the holiday spirit while taking advantage of tax benefits. Helping others also makes us feel better, reduces stress, and benefits the community.
- Evaluate Estate Documents. Now is the time to update estate documents if there have been any changes, including divorces, marriages, large purchases, etc. This will put the family heading into 2026 with their financial affairs in legal order.
- Get Expert Advice. Work with a financial planner who can take your specific situation and goals into account and help you create a plan. Once people get expert advice and see the plan and how it can unfold, they get excited about it and are more likely to stick with it to see it come to fruition.
“Don’t try to navigate this on your own or without a sound plan,” added Smith. “The best way to avoid money pitfalls is to be intentional and have a plan. We help many people with their unique needs, ensuring that their finances are a blessing rather than a burden as they age. We can help you, too.”
The Retirement Smith serves those in the Fredericksburg, Va., area and beyond with individualized financial planning. Their motto is to treat people as they want to be treated, and they aim to ensure there are no gaps, that people have the answers and solutions they need, and that they will not fall short in their retirement years.
They offer retirement planning, income planning, and life insurance. They provide a free, color-coded money risk analysis that focuses on the three major phases of retirement financial management people typically experience: accumulation, distribution, and preservation. They also offer a Balanced Retirement book to help people plan for a successful retirement.
Smith has recently joined with his wife, Jennifer Scherer, owner of Fredericksburg Fitness Studio, to create a podcast that focuses on fitness and finances. For more information or to schedule a complimentary consultation, please visit our website, To learn more about Fitness & Finance Radio, visit
About The Retirement Smith
Financial planning expert Jeff Smith owns The Retirement Smith, located in Fredericksburg, Va. The company focuses on providing people with well-thought-out retirement income strategies. Plans are tailored to the needs of individuals and families, as well as small and large businesses. For more information, visit the site
Sources:
National Retail Federation. NFR Expects Holiday Sales to Surpass $1 Trillion for the First Time in 2025. November 2025.
Journal of Consumer Research. ‘Tis the season for spending: More than half of Americans would go into debt to make someone they love happy. October 2025.
Journal of Accountancy. Going into debt for the holiday season? You’re not alone. November 2025
Thank you,
Glenda, Charlie and David Cates
