Using AI to plan holiday spending without going over budget

Expert advice: make a list of expenses first, then turn to AI tools without entering personal details.

Holiday costs often go far beyond presents and meals, and those extra expenses can pile up fast.

Cherry Dale, vice president of financial education at Virginia Credit Union, said the best way to control holiday spending is to start with a basic list before opening an AI tool such as ChatGPT or Claude.

Dale advises writing down everything expected for late-year spending, including travel, decorations, gifts and hosting expenses. She said AI can be useful for building a budget, but users should never enter personal information such as names or banking details.

She added that broad, non-identifying details can still help produce a practical budget tailored to your needs.

“You can put generic things like, ‘Hey, I’m hosting eight people for Thanksgiving, and I have six adults, two children. I would like to create a traditional Thanksgiving meal. Can you map out a budget for me with all of this information?’” Dale said. “And it will spit out approximate cost per person.”

Dale said AI tools can also help suggest a menu, build a grocery list, or generate gift ideas that match a specific budget.

“Use AI — put in, like, ‘I would like a gift for a child that’s interested in piano or theater, or maybe it’s sports. What is something under $10 that would be simple for me to create or to give?’” Dale said. “And it can give you some very specific suggestions to stay within the budget.”

For people hoping to cut costs even more, Dale suggests looking beyond purchased gifts. She said giving time or planning a shared experience can be more meaningful than buying an item.