When you were a kid, the holidays came easily -- Mom, Dad and Santa ran the show. All you had to do was crawl out of bed Christmas morning and a pile of gifts magically appeared under the tree.

But things are a little different now that you're on your own. With presents to buy, travel to arrange and parties to throw, shouldering the cost of the holidays is enough to turn even the jolliest elf into a Scrooge.

The seasonal squeeze for young adults is particularly tight. We're often caught between small salaries and big gift expectations from friends, family and small children.

In fact, in years past, the majority of people ages 25 to 34 have said they plan to exceed their budget and will celebrate the New Year under financial difficulty, according to LowerMyBills.com. Talk about a holiday hangover.

So if we know we're going to overspend, why do we do it?

"The holidays evoke a number of emotions ranging from anxiety and depression to excitement and anticipation," says Steve Blankenship, a financial planner in Grapevine, Texas. Throw in aggressive marketing techniques that play off those feelings and you have a recipe for money trouble.

Joshua Klapow, a clinical psychologist and associate professor at University of Alabama at Birmingham says people in their 20s also feel like they have to prove their success and their new-found independence. "Gift-giving becomes a larger statement than just the gift," he says. That can lead to shopping for too many people and spending more than one can afford in an effort to impress.

Know your limits

You have student loans, a rent or mortgage payment and some credit card debt. Just where is your holiday slush fund supposed to come from?

Unfortunately, many people turn to their credit cards and end up paying for gifts long after the recipient has forgotten them. At 18% interest, for example, $500 would take seven years to pay off -- and cost $365 extra -- if you paid the minimum each month.

Avoid going into debt by evaluating the number of gifts you buy and setting some guidelines.

For example, your family, roommates or co-workers could draw names so you each shop for one person. Or set a dollar limit on gifts so you don't feel uncomfortable when you give a $15 gift and get a $50 one in return. Consider giving group gifts -- instead of buying separate presents for your brother, his wife and their three kids, give them a game, movie or snack basket they can enjoy together.

Discussing gift expectations with friends and family needn't be awkward, says Klapow. If you're feeling the pressure, chances are others feel the same way. They'll probably be relieved to cut back on their shopping too.

If you have small children at home, it's also important to set limits. Many adults go overboard because they want to give their kids the Christmas they never had as a child, or live up to celebrations of their past. Perhaps spouses could scale back purchases for each other and use the money for the kids.

Shop responsibly

Gift-giving may be the focus of the season, but it comprises only 37% of the average holiday budget. Don't overlook the expense of travel, entertainment, decorations, shipping, greeting cards and postage.

The key to staying within your means is to have a plan. Write down all those expenses, plus the names of people you want to buy gifts for and how much you want to spend, advises Howard Dvorkin, founder of Consolidated Credit Couseling Services.

Then use the Internet to get ideas, research products and shop around for the best deal. That way, whether you end up heading to the store or buying online, you'll know exactly what you want and how much it costs (remember to include shipping charges on the Web). You'll also limit your impulse purchases and the time spent fighting holiday crowds.

It's not too late to find bargains on holiday travel. For presents, check out these 25 Web Sites that'll help you snag a deal. You can also browse creative gift ideas at Surprise.com and read consumer reviews on everything from toys and movies to electronics and sporting goods at Amazon.com.

Before tossing anything into your cart, ask yourself why you are buying it. "Is it something that person really wants and you can afford? Or is it something that will show that person you have come of age?" asks Klapow. "Mom and Dad or Cousin May and Auntie Cathy are not going to be happier that you put yourself in financial stress rather than giving them something that might be slightly less and within your means."

Try to limit your spending to what you can afford right now. Nearly a third of us are still paying off debt from last holiday season, according to CCCS. One strategy to avoid trouble is to leave your credit cards at home when you hit the mall. That way, when you're out of cash, you simply go home. People spend up to a third more when paying with a credit card instead of cash, says Dvorkin, because they don't see the money actually leaving their fingertips. But if you opt for the convenience of your debit or credit card, keep your spending in check by writing down how much everything actually cost. And set up a plan to pay off your credit card bills right away.

Prepare for next year

Next Christmas may seem an eternity away. But don't let it sneak up on you.

What gets most people into trouble is they try to pay for all their expenses at once. We're not suggesting you finish your holiday shopping by July, but if you set aside money regularly throughout the year, you can minimize the shock to your budget. A simple savings plan will help you avoid going into debt or raiding your emergency fund just to buy Dad yet another tie. For example, if you saved just $50 a month, you'd have $600 in your holiday coffer by next December. Up that to $80, and you'd have close to a $1,000 stash.

And after the holidays have passed, stock up on clearance-priced decorations and greeting cards for next year.

MORE: Kiplinger.com | Spending Wisely | Column

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