Many consumers are preparing for an expensive holiday shopping season with tariffs, inflation, and a higher cost of living. 84% plan to cut back spending, but still expect to spend an average of $721 on gifts. Experts advise avoiding debt during the holidays to start the new year on a positive financial note.

To prepare for holiday spending, create a sinking fund in your budget. Review expenses to find areas to cut back and redirect funds to holiday savings. Consider putting your sinking fund in a high-yield savings account to earn interest without extra effort.

Setting a spending limit and starting holiday shopping early can help you stay within budget. Research retailers with price-match guarantees to get the best deals. Consider taking on a temporary part-time job or side gig to earn extra cash for holiday expenses.

Other cost-saving ideas include whittling down gift recipients, utilizing credit card rewards, and being intentional with time and money. Planning ahead, setting limits, and using smart spending strategies can help you enjoy the holiday season without going into debt.

Read more at Yahoo Finance: How to save money and avoid debt this year