It’s the 12 Days of Christmas — Personal Financial Edition

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Q: Our holiday gift-giving tradition evolved as our family grew and spread out. Now we only buy for those we celebrate with in person, and everyone else gets their gift or experience when we see them during the year. This year, that tradition has put my husband and I in a different spot. We’re caring for his elderly parents, and only one child will be home for the holidays. Buying for just one kid is unintentionally saving money (though we will still send e-transfers to our other two so that all the kids are treated equally). With the holidays usually being a big spending season for us, especially because we typically host quite a crowd, it’s unusual to have credit cards under control and a little extra cash. It’s given us a chance to pause and question, what could this unexpected breather mean for the year ahead? ~Theresa

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A: December is one of the best times to take stock of your finances because it naturally blends reflection with practical opportunity. With a whole year of income, spending, debt payments and savings habits to draw from, it’s easier to spot trends, identify challenges, and see where you’ve made real progress. The holiday season can also bring spending patterns into sharp focus, often revealing where your budget feels tight or where you tend to overextend.

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Conducting a year-end review before Dec. 31 means there’s still time to make charitable donations, adjust business expenses for those who are self employed, and ensure your RRSP contributions are where they should be. It’s also a good moment to review annual bills and align your plans with income tax filing deadlines. Most importantly, reflecting in December helps you start the new year with a fresh perspective and proactive approach for what lies ahead.

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With the holidays in mind and to get 2026 started off right, here are the 12 days of Christmas — financial edition:

First day: A budget on a spreadsheet

Everything starts with the basics, and a budget provides the foundation for planning your finances. If you don’t have a household budget or haven’t reviewed your budget recently, with a whole year’s worth of information at your fingertips, outline your budget based on the priorities you have for next year. Paying down debt, having the money on hand to pay bills on time, planning for retirement, or saving for a trip — these are all ways your budget can help you achieve your goals.

Free, Interactive Budgeting Calculator Spreadsheet to Create a Budget That Works

Second day: Two credit reports

If you don’t routinely request your own Canadian credit reports from Equifax and TransUnion, now is a good time to do that. Even if you think you know what is on them, it’s worth verifying them for accuracy and to ensure that no one has applied for credit in your name. Your credit reports could be different, so it’s important to request them from both companies. It’s free and doesn’t impact you negatively.

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How to Get Your Own Credit Report for Free

Third day: Three bank accounts

Once your budget is outlined, including your planned spending for fixed, variable, and periodic expenses, set up automatic transfers through online banking each payday to separate your money into three separate bank accounts. The first account is for fixed expenses, which are payments that occur on the same day each month for the same amount, such as your rent or mortgage, car loan, insurance and utility bills with equalized billing.

The second account is for variable expenses, which change month to month, like groceries, gas, cellphone bills, dining out and entertainment. Many households have numerous variable costs, so you might consider dividing this money into envelopes while you fine-tune your budgeting process.

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The third account is for periodic or annual expenses. Estimate your total yearly costs, divide by the number of paydays, and transfer that amount each payday so that funds are available when needed. This category could include annual professional dues, clothing, car repairs, gifts, special occasions or vacations.

Spending Guideline by Percentage — How Much Should You Spend?

Fourth day: Four phone calls

As the saying goes, you don’t get if you don’t ask. Make four phone calls that could save you money or provide greater value. Consider contacting your bank to switch to a low-cost account, calling your credit card company to request a reduced interest rate or annual fee, reviewing your cellphone plan to ensure it fits your needs at the right price, or checking with a utility company about loyalty discounts or current promotions.

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How to Lower Fixed Expenses to Free Up Cash for Savings or Debt Payments

Fifth day: Five habits to break

Looking over your expenses this past year, you may have noticed habits or impulse purchases that ended up costing more than you realized. For this fifth day of financial planning, identify five costly habits and decide how to remove them from your budget. These could include no longer picking up takeout when there’s food at home, ceasing to add extra items to online orders for the sake of free shipping, spending meaningful time with your kids instead of buying them unsolicited gifts, saving your tax refunds and credits, rather than splurging, and resisting an impulse purchase just to earn points.

How to Stop Spending Money

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Sixth day: Six debts to pay off

Large or small, choose six debts to tackle aggressively in 2026. Commit to a repayment plan or use the snowball or avalanche method to reduce what you owe as quickly as possible. Debt consolidation options can help you meet your goals.

7 Tips to Aggressively Pay Off Debt in 2026

Seventh day: Seven subscriptions drifting

Subscriptions can be a silent spender, quietly adding hundreds of dollars to your yearly expenses. From annual credit card fees and multiple streaming services for movies, TV, and music, to gym memberships, apps for memes or photo collages, cloud storage plans you no longer use, or trials that never got cancelled, take a close look at what you’re paying for and pause or cancel anything you no longer use or need.

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Eighth day: Eight meals a-making

Meal planning is a simple way to stay on track with your budget and goals, especially as grocery prices are expected to remain high throughout 2026. Choose eight affordable meals your family enjoys and build them into your meal and snack rotation at least once a month. In December, for those struggling with holiday expenses, repeating your budget-friendly favourites can even help offset some of the extra costs.

6 Ways Meal Planning Will Save You Money

Ninth day: Nine minutes thinking

As you look back over the past year, what stands out about your spending? Maybe your credit card bills are higher than expected, your debit transactions feel almost unfamiliar, or you realized you could have put more toward your emergency fund. Take nine minutes to reflect not just on how much you spent, but why you spent, and whether those purchases aligned with what truly matters to you.

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Mindful spending is about using your money with clear purpose, making sure each dollar supports your values and long-term goals rather than fleeting urges or stress-driven splurges. For 2026, picture the kind of spending that reflects your priorities and let that guide your choices moving forward.

How to Cultivate Mindfulness With Your Spending

10th day: 10 per cent to savings

Whether you’re paying off debt or saving for retirement, saving consistently is the secret weapon that keeps your plan moving in the right direction. The challenge, of course, is protecting your money from yourself. For most people, an out-of-sight, out-of-mind approach works best. Set up a high-interest savings account and automate a transfer every payday so the money leaves your chequing account before you have a chance to spend it. If 10 per cent feels too ambitious, start smaller and build up over time — but start.

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Do You Think of Savings as an Important Expense?

11th day: 11 rewards a-coming

Take a moment to plan 11 small rewards, one for each month from January through November 2026, as a celebration for sticking to your budget and following the goals you’ve set during these days of reflection. The rewards don’t need to be expensive; the idea is just to create some positive reinforcement that keeps your motivation high all year long.

Maybe January’s reward is a favourite coffee treat with a friend you don’t see often. For February you could plan a comfortable night in with a movie or turn it into a cosy date night. Your reward in March could be a new book you’ve been eyeing, and so on. Since December is already full of festivities, pick a reward for the month when you’re ready to celebrate a year of focusing on your finances.

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By mapping out these mini rewards in advance and plotting them into your appointment calendar, you give yourself something to look forward to each month, while reinforcing the healthy financial habits you’re building. However, don’t be discouraged if you slip up a little; aim for progress, not perfection.

How to Stay Motivated When Paying Off Debt

12th day: 12 months for saving

Christmas in July? Bah-humbug. Begin saving in January for the 2026 winter holiday season. Set a goal and break it into manageable monthly deposits so that by next December, you’ve built up the money you need without stress or last-minute scrambling.

How to Set SMART Financial Goals

The bottom line on conducting a December review of your finances

When holiday traditions change, it can be tempting to focus on what we’ve lost. However, shifted traditions can also lead to positive changes if we take the time to notice them. Unexpected adjustments, such as smaller gatherings, simplified gift-giving, or a pause of our usual spending, can create space for reflection and thoughtful planning. By leaning into these opportunities, we can build healthier financial habits, strengthen our values around money, and enter the new year with a sense of control over both our finances and our celebrations.

Related reading:

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Tips to Stay Financially Healthy All Year Long

Peta Wales is President and CEO of the Credit Counselling Society, a non-profit organization. For more information about managing your money or debt, contact Peta by email, check nomoredebts.org or call 1-888-527-8999.

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