“Holiday spending is a want, not a need,” she emphasizes. “It may feel like a requirement, but it’s not.”
In the glittering lure of holiday consumerism, financial advisor Kamila Elliott emerges as a beacon of pragmatic wisdom, offering a lifeline to those tempted by seasonal spending temptations. With the confident demeanor of someone who has successfully navigated the financial portfolios of high net-worth clients and small business owners, Elliott makes her message crystal clear: the holidays don’t have to be your financial apocalypse.
Elliott’s approach is refreshingly straightforward. She advocates for the 50-30-20 budget rule — a financial framework that could save countless bank accounts from post-holiday ruin:
• 50% of take-home pay goes to necessities: rent, groceries, insurance
• 30% allocated to discretionary: holiday shopping, dining out, vacations
• 20% dedicated to saving and debt reduction
Holiday Spending: Creative Gifting on a Budget
“It isn’t the amount of the gift. It’s the thoughtfulness of the gift,” Elliott says, her voice cutting through the seductive noise of Black Friday emails and holiday marketing campaigns. “People like gifts that show someone has actually listened to what they want.”
For college students and those with limited incomes, Elliott offers ingenious alternatives to expensive presents. “What you have is time,” she explains. “A voucher for car washes, home-cooked meals, or handyman services can be more meaningful than any store-bought gift.”
Holiday Spending: Credit Card Wisdom
Contrary to popular belief, Elliott doesn’t demonize credit cards. Instead, she offers hyper-focused advice: “Use credit cards for purchase protection and points, but only if you can pay off the balance in the next billing cycle.”
Holiday Spending: The Mental Game of Financial Planning
“Write down your goals because studies show you have a 60% higher chance of reaching them,” Elliott advises. Her most powerful recommendation? Find an accountability partner — someone who will ask the tough questions when you are off track or considering an impulse purchase.
Holiday Spending: A Final Word of Caution
“Don’t let a short-term event derail your long-term goals,” she warns. The holidays are a moment in time; your financial future is forever. In a world of aggressive marketing and endless sales, Elliott offers something more valuable than any discount: a path to financial peace.
Holiday Spending: Kamila’s 8-Step Guide
1. Craft a Comprehensive Budget
Develop a detailed spending plan before the holiday shopping season begins. Map out expenses to avoid financial strain.
2. Apply the 50/30/20 Budgeting Rule
Spend strategically: 50% for necessities, 30% for discretionary spending and 20% toward savings or debt reduction.
3. Set Per-Person Spending Limits
Determine a realistic budget for each gift recipient. Breaking down total holiday spending prevents overspending and financial stress.
4. Leverage Credit Card Benefits
Use credit cards wisely to maximize purchase protection and reward points. Critical caveat: Pay the full balance in the next billing cycle. It is okay to use credit cards to benefit from purchase protection and points. However, you must be willing to pay off the full balance on your next billing cycle.
5. Avoid Using Debit Cards for Online Purchases
Protect personal finances by using alternative payment methods for Internet transactions.
6. Prioritize Thoughtful Gifting
Communicate gift expectations with family and friends. Focus on meaningful gestures over monetary value. Consider low-cost, personal gifts like a book, car wash, or pet-sitting service.
7. Maintain Financial Stability
Prevent year-end financial setbacks. Progress toward financial goals occurs through consistent and incremental steps.
8. Shop Black Friday and Holiday Sales Strategically
Use sales to purchase only immediate-need items consumable within two to three months. Avoid impulse buying or unnecessary inventory buildup.
For those seeking financial guidance, Kamila Elliott can be reached at Collective Wealth Partners via (www.collectivewealthpartners.com) or on Instagram @kamilafinancial.
Kamila Elliott, MBA, CFP®, is a Senior Wealth Advisor and co-founder of Collective Wealth Partners in Atlanta, with over two decades of experience in financial planning and investment management. Specializing in comprehensive wealth solutions, she has worked with individuals, business owners, and endowments, including major universities and hospitals, managing client assets ranging from $20 million to $450 million, representing $3 billion in total assets.
Elliott is also a recognized expert in addressing the racial wealth gap, diversity in financial services, and advising first-generation wealth investors. A former Chair of the CFP Board in 2022—the first African American and one of the youngest to hold the position—Elliott continues to advocate for financial access and ethical standards on Capitol Hill.
She has been featured on CBS Morning News and CNBC, and was named one of Barron’s Top 10 People to Watch in Wealth Management in 2023. Elliott holds a B.A. and MBA from The Pennsylvania State University and is a licensed Certified Financial Planner™, as well as holding licenses in Life, Health, and Long-Term Care insurance. She also serves on the Investment Committee for Women Against Abuse in Philadelphia and volunteers with the IRS Volunteer Income Tax Assistance (VITA) program.
Note: This interview has been condensed and edited for clarity and length. This interview was rewritten and edited using AI tools.
