HONOLULU (KHON2) -- As the holiday season looms closer, so does the financial stress that often accompanies it. So, KHON2.com sought out some financial advice from a local expert.
According to Kevin Morisoli, a wealth management advisor with Northwestern Mutual, nearly 33% of Americans report feeling both stress and excitement around their finances during the holidays.
It's a time when budgets are stretched to their limits, and spending can sometimes spiral out of control.
However, with careful planning and intentionality, the financial strain of the season can be reduced in order to allow you to focus more on what truly matters.
Morisoli has been advising clients on financial strategies for nearly two decades as he helps them achieve their goals in areas such as retirement planning, insurance and education funding.
His approach is rooted in open communication and regular check-ins with clients to ensure their financial course is steady. This is especially true during the most financially taxing time of the year -- the holiday season.
“It’s important to remember that the holidays tend to creep up on us fast,” Morisoli said. “Halloween comes, and before we know it, Thanksgiving is right around the corner, followed closely by Christmas. The challenge is that all these holiday expenses—travel, gifts, extra meals—hit at once. It’s overwhelming.”
Morisoli’s advice centers around proactive budgeting. In his view, the key to surviving the holiday season without drowning in debt is planning well in advance.
“The first step is to get a handle on your budget before the season kicks off. If you have a good sense of your regular spending, you’ll be much better equipped to handle the larger, one-off costs like flights, hotel stays and presents.”
Many people, particularly in expensive areas like Hawaiʻi where Morisoli practices, find themselves facing significant financial pressure during the holidays.
With our higher cost of living, Hawaiʻi residents often struggle with discretionary income which makes it difficult to save for seasonal expenses. This is where Morisoli’s advice on targeted saving comes into play.
For some clients, he suggested setting up a separate account exclusively for travel and holiday spending.
“Let’s say you have five kids and are planning a trip for the whole family. The cost of flights alone can be astronomical,” Morisoli explained. “We’ve helped clients set up travel accounts that earmark a certain amount for these seasonal expenses. That way, when the time comes, they’re not scrambling or resorting to credit cards.”
Building these accounts throughout the year might seem like a heavy lift, but Morisoli emphasizes that it doesn’t have to be overwhelming. Even small, consistent contributions can make a big difference come holiday season.
“If you can set aside even $100 per month, by the time the holidays roll around, you’ll have saved $1,200—enough to cover flights or maybe even some presents,” Morisoli advised. “The goal is to avoid using credit cards unless it’s for strategic purchases, like booking flights with points or cash back.”
Morisoli also highlighted the importance of reviewing past holiday spending patterns.
“Sometimes, all it takes is looking at last year’s receipts and seeing how much you spent to get a realistic view of what’s coming. It might be painful at first, but it’s necessary,” he said.
For clients who tend to overextend during the holidays, Morisoli emphasizes that spending does not need to be extravagant. While it’s easy to get swept up in the “holiday spirit” and feel pressured to buy expensive gifts or throw lavish meals, Morisoli reminds people that it’s the thought that counts rather than the price tag.
“It’s easy to get caught up in wanting to show people you care by spending money,” he said. “But one of the best things we can do is focus on our true priorities—like spending quality time with family and friends—and make those memories the centerpiece of the season.”
One of the most common financial pitfalls during the holidays is the accumulation of credit card debt.
As Morisoli explained, many people end up relying on credit cards to fund last-minute expenses, often leading to a cycle of debt that’s difficult to break.
“The holiday season is the perfect storm for credit card debt,” he said. “People are maxing out their cards, and by January, they’re facing high-interest payments that can snowball if they’re not careful.”
The key to avoiding this trap, according to Morisoli, is to plan for expenses rather than relying on credit. For those who do need to use credit, he advised using it strategically.
“If you’re going to use a credit card, make sure it’s for rewards or points that will help with the next trip or purchase,” he said. “And always have a plan to pay it off as soon as possible to avoid interest charges.”
Setting up a budget and sticking to it requires discipline and regular review. Morisoli emphasized that it’s crucial to check in with your finances throughout the season, not just at the beginning.
“It’s easy to think that once the plan is in place, you’re done," he explained. "But we know that things change; life happens. So, we recommend a regular check-in.”
Morisoli also notes the emotional impact that holiday spending can have.
“Finances are deeply personal, and for some people, just talking about money can feel vulnerable,” he explained. “That’s why I always tell clients, ‘Don’t feel bad about where you are financially.’ We’re all on a journey, and it’s about progress, not perfection.”
For some, financial therapy plays a significant role in this process. By discussing their goals, anxieties and strategies openly, clients can build a better relationship with their finances.
“It’s like working with a coach or therapist,” Morisoli said. “When you’re working on something as important as your financial future, it’s helpful to have someone by your side, making sure you’re staying on track.”
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In the end, Morisoli’s core message is about awareness and preparation.
“Holiday spending doesn’t have to be a financial nightmare,” he said. “By being proactive, setting up specific funds, and sticking to a budget, you can make the holidays less stressful and more enjoyable.”
This is the second in a four-part series in which KHON2.com sits down with a local wealth management advisor to discuss planning for holiday spending, how to navigate the finances of holiday travel and the importance of seeking finance therapy.