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Right during this time of the year, people start thinking about New year’s resolution and what they would like to accomplish come January 1st. There are all sorts of ideas ranging from weight loss to career prospects. It’s a joyous, fun-filled, and happy time of the year and the spirits are high.
But, very few think about the holiday season debt that is incurred.
Almost 8 out of 10 folks will overspend during the holiday season and spend hundreds of dollars on decorations, food, entertainment, travel, and other things, not on the shopping list.
So, if you want to avoid focusing on paying off the holiday season debt after New Year, and instead, save money during the holiday season, keep reading…
We are going to look at 21 ways in which you can save money during the holiday season.
1) Come Up With A Budget
This is the first and foremost step you’ll need to take if you want to save money during the holiday season.
Why?
Because if you do not set a limit to how much you need to spend, you are going to incur hundreds of dollars worth of holiday season debt.
And, I’m sure you do not want that!
Depending on your monthly income and expenses, you will determine the amount you save every month. For the holiday season, you will have to include additional expenses related to home decor, food, travel, entertainment, gifts, and other items.
Make sure you think about every single item you need to purchase and budget for it. This will avoid surprises and will save you both time and money. To learn more about the budgeting method, template format, and other budgeting tips, check out this related article.
Related Article: 10 Budgeting Tips For Your Money
2) Make A Wish List
Yes, you read that right! I want you to make a wish list of all the items that you would like to buy during the holiday season.
Once you have your wish list, go online and research the amount of money it costs. This will give you a perspective of the money you will either spend (if paid in cash) or borrow (if purchased via a credit card)
Calculate the total amount (add) of money you’ll need in order to fulfill your wish list.
Next, compare the total amount of your wish list with the budget you set forth for your holiday season. In most cases, your wish list total will be significantly higher than the budget you want to stick with.
Once you compare your numbers, the realization about overspending and incurring additional debt kicks in. This will get your creative juices flowing and help you trim down your list to match your budget.
3) Determine Your FINAL List
Your final shopping list is going to be your blueprint during the holiday season. If you stay true to the course, you are going to thank yourself in the new year as you will avoid unnecessary spending/debt and save money.
Try to breakdown your spending list into categories and sub-categories. This will help you keep a track of each item and also make it easier for you to budget for them.
For example, your list could look like the one below:
- Food
- Breakfast
- Lunch
- Supper
- Dinner
- Drinks
- Bottled water
- Sodas
- Alcohol
- Home Decor
- Christmas tree
- Lighting
- Christmas tree ornaments
- Exterior decor
- Interior decor
- Gifts
- Gifts for kids
- Gift for spouse
- Gifts for parents
- Gift for grandparents
- Gifts for other family members
You get the idea, right?
Once you have your trimmed down list, revisit the list after a couple of days to make edits and then finalize the list.
4) Set Budgets For Each Category
Once you have the FINAL list, assign dollar amounts that you want to spend for each of the sub-categories while keeping in mind the total budget from #1.
Add all the amounts and compare vs. budget. If you are within your budgeted amount, you are good to go. If not, you’ll either have to trim down the wish list or reallocate the dollar amounts for the gifts (if you had a $40 gift assigned to a family member, maybe make it $35 or $30)
Saving money during the holiday season can be tough as there are a lot of things to buy and some we have to buy that we don’t have a say in. For this reason, be a little conservative, to begin with.
Once you assign the budgets to each category and sub-category, stick with the plan and do not change, except for unforeseen circumstances.
Download FREE Budget Checklist
>> 50+ List of Budget Items
>> Budget Items categorized into 3 sections: Income, Fixed Expenses, Variable Expenses
5) Transfer Holiday Money To A Seperate Bank Account
This will almost always save your day, especially during the holiday season. Once you have the TOTAL budgeted amount finalized, move that amount to a separate account.
It will be much easier to track the spend and keep track of the items bought.
Also, I would recommend withdrawing money in chunks rather than a lump sum. This will ensure that you are not overspending and do not run out of money.
6) Go CASH Only
You would strongly want to consider buying in cash during the holiday season, especially if you are not good with credit cards.
If you use cash for all your holiday shopping, you do not incur credit card debt and do not have to worry about astronomical interest rates.
Also, make sure that you are only withdrawing cash from a separate account that had the budgeted amount for the holiday season. Do not go back to your checking account and withdraw money. If the cash is over, the party is over. In other words, do not cheat 🙂
I understand the challenges of trying to save money during the holiday season but it is for your own financial good that you stay true to yourself.
Related Article: How To Save Money
7) Shop Smart During The Year
One of the common mistakes people make (sometimes, me too :() is to wait until the last minute to buy what they need. If you do not plan in advance, you might have to pay more for the same stuff that you would have gotten for a cheaper price.
There are certain items that are required no matter the occasion or time of the year. For example, you would always need plates, cups, napkins, glasses, etc. if you are hosting.
Try to buy them in bulk at Sam’s Club, Costco or BJs. They offer coupons on a year-round basis and you can get a great deal on a lot of household items.
In addition, Amazon offers Prime Day for its prime customers. The deals are fantastic and will almost cover every category and sub-category on your list.
You’ll have Black Friday, Cyber Monday and Christmas day shopping discounts every year but they might not always offer the best price.
Also, look for coupons and special offers from the retailers you shop at regularly. Sometimes, the discounts are worth it to buy ahead of time if the items are not perishable.
8) Research Multiple Websites Before Buying
If you want to save money during the holiday season, do not miss this tip. You see, as the online price competition intensified over the years, most of the websites offer heavy discounts to match their competitor’s price.
This is a huge advantage for you and me as a shopper. If you are planning to buy from Walmart, check the price at Target or Amazon before buying.
You will be surprised that often times you can find the same item for a cheaper price.
A little bit of time and effort can help you save money.
9) Ask For A Price Match
A lot of stores offer a price match guarantee – which means that if you found a store that offers the same item at a lower price, the store will match the lower price for you.
Isn’t that a great way to retain the customer?
I have used this option a few times and every time I ended up saving at least $3-$5 on average. Over time, the savings add up and it is a great way to save money during the holidays.
10) Stick To The Purpose Instead Of The Glitz
Being in the thick of the holiday season, it is easier to get distracted from the true purpose of celebrating the holidays.
The holiday season is a time where family and friends come together to spend quality time, enjoy delicious food, relax, and catch up on stories and experiences. At its core, there is nothing more important than this during the holiday season.
But, we get distracted by the million other things that need to be taken care of from over the top home decor and expensive gifts to spending more money shopping and buying stuff we do not need.
Focus on the purpose of the holiday instead of how the home decor looks during the holidays. Don’t get me wrong – I am not saying to not put in the effort for home decor. All I am saying is if you can make do with a lighting system that is $20-$30 cheaper instead of the expensive one, you should make it a priority to save money.
11) Avoid Buying Expensive Gifts
This idea seems to be an obvious one if you are trying to save money during the holidays but in reality, countless folks buy expensive toys during the holiday season.
A few years ago, at one of the dinner parties, I saw a couple gifting expensive gifts (each easily over $100) to at least 3 kids. They opened the gifts and 2 of them had American Girl dolls and the third one was a train set.
Back then, I had no kids so the realization did not come to fruition but today, I know that those $300+ gifts were probably used for a week or two and must be sitting in a toy box soon after that.
In addition, I was thinking – what if the kids did not like their gifts?
Instead, you can put a dollar limit on the gifts you are buying. An even better option would be to ask the parents of the kids what gifts would they like within a certain threshold. To make it easier, you can research and provide a couple of options and let the parents decide what is best for their kids.
Often times, this is the better strategy as both the kids and parents are happy with the gifts.
12) Use Cashback Credit Cards
If you prefer to use your credit cards instead of cash for purchases, I’d recommend using the cash back card for your holiday purchases.
This is one of the smartest ways to get paid for your shopping and save money during the holidays. Cash back cards offer anywhere from 1% to 5% cash back on purchases made via the card. If you do the math, for every $100 spent, you get a $5 back (this could be a free latte for you)
So, be smart about your purchase options and maximize your money.
Related Article: How To Use Your Credit Card Wisely
13) Go DIY
One of the ways in which you save money during the holidays is to do-it-yourself (DIY).
It is important to plan the holiday list in order for the DIY option to work. The reason being, you do not want to be overwhelmed and instead would want to enjoy the time doing something together.
You can hang up the lights (both interior and exterior) on your own or with the help of family members. This will further enhance the bonding and you will save money.
Also, you can gift wrap all the gifts by yourself instead of getting it done at the store and save money. You can even include kids in the gift wrapping activity and make it a fun-filled project for them.
Instead of getting dessert from outside, you make some at home. This will not only save money but also provide an opportunity to showcase your culinary skills. The best part is, it’s home-cooked and a healthier version than buying from the store.
14) Introduce The Potluck Theme
This idea is increasingly becoming popular. Potluck in itself is not a new idea or a theme but making your holiday dinner a potluck, makes it easier for the family that is hosting.
As we know, there is generally more food that is cooked for holiday meals as opposed to any other time of the year.
So, it would be great if each family can bring 1-2 dishes instead of the host cooking 10-12 dishes and managing everything.
In addition, it is less of a burden on the host’s wallet to buy groceries and cook so much food and can help save money during the holidays.
15) Buy In Bulk
This is a very common way to save money during the holidays. You can buy a lot of household items in bulk and save big.
Warehouse stores like Sam’s Club, Costco and BJs are popular places where you can find great deals and discounts on everyday items. If you plan ahead, you can really save a good chunk of money on your holiday season purchases.
16) Say Hello To Secret Santa
This is one of my favorite ways to save money during the holidays. Secret Santa is a way in which each family member is responsible to bring a gift for the other family member.
The fun part is that only you will know the name of the person you are buying the gift for. It will be a surprise (Secret Santa) for others.
Also, you will NOT know who will be giving you your gift and this makes it more interesting.
Every year for the last 8 years, we have been doing Secret Santa with a dollar threshold for the gifts and it has been the best part of the entire holiday experience. Adults and kids alike wait for Secret Santa and we have a blast opening up gifts.
This also ensures that no one is going to pay more for the gifts beyond the dollar threshold and makes the gift buying process stress-free.
17) Give Yankee Swap A Shot
If your party has no kids, instead of Secret Santa, you might want to try Yankee Swap.
The idea is similar except that each adult is given a number and when called upon, they can choose any gift from the lot. If they do not like the gift after opening, they have an option to swap with any other member who already has an opened gift. The swap can happen ONLY once.
The best part?
If you are #1, you get to wait until the end and pick the gift you like and no one can swap with you 🙂
There is a dollar threshold for the gifts so you are not spending more than required and this helps save money during the holidays. Also, you get a gift in return which is equivalent to the amount you spent buying a gift for someone else.
It is more fun than Secret Santa due to the swap option.
18) Send E-Cards
Holiday greeting cards can be an expensive affair as the cost of each card runs around $3 on average. The envelope costs extra so you are looking at $4 on average for each card.
Instead, you can go with a cheaper and greener option, E-Cards and save money during the holidays!
There are so many FREE options online and you can customize each card with the design, music and other elements (not possible with a physical greeting card)
One of the popular websites to find free and affordable greeting e-cards is 123greetings.com
19) Don’t Go Crazy With The Lightings
I understand the whole holiday season vibe and once a year decoration opportunity when it comes to home decor.
But, that is just money spent on something that you might not even again next year.
When it comes to holiday lighting, every year there is new technology and lighting options in the market. There are some options that run close to $80-$100 just for outdoor lighting.
If you are looking to save money during the holidays, find cheaper options and reallocate the extra money somewhere else.
20) Celebrate Christmas By The Pool
To mix things up, you can celebrate Christmas and holidays at a resort or a cruise ship or both.
One of the slowest seasons for the tourist industry is the holiday season as most spend time with family. But if you have been wanting to go on a cruise and stay at a popular/luxury resort, the holiday season is the best time to make that trip.
The rates are heavily discounted due to lower demand and you can take full advantage of the prices. It is a perfect getaway as most hotels and resorts offer bargains that are simply too good to pass on.
In addition, sometimes you can also negotiate the rate further. If a competitor is offering a similar package at a lower cost, you can ask if the hotel will match the price. You might just luck out and get a deal of the lifetime.
21) Use Online Apps That Can Save Money
Similar to the idea of receiving cash back after using a credit card, there are online apps that help you save with your purchases.
Swagbucks is one of the popular ways in which you earn Swagbucks (SBs) when you shop through their site. For example, instead of going directly to Amazon for shopping, you can go to the Swagbucks website and click on Amazon and shop instead.
There is no change in the shopping experience and those Swagbucks can be converted into real money that you can transfer to your bank account.
Another app is Acorns. The concept is really amazing in which if you purchase a coffee for $3.50, it is going to round up to the next highest dollar (in this case $4) and invest the balance ($4 – $3.50 = $0.50) in your investment account.
It might not seem much on a per-transaction basis, but if you add up your monthly expenses, it is a good chunk of money automatically invested for you.
Download FREE Budget Checklist
>> 50+ List of Budget Items
>> Budget Items categorized into 3 sections: Income, Fixed Expenses, Variable Expenses
Summary
If you are trying to save money during the holidays, it is essential you have a list of the items required for the holidays and a budget for each item.
Do not stray away from your shopping list and try to spend less. There are countless options to find cheaper options for the household items you buy, so make sure you do your research thoroughly.
In the end, saving money during the holidays is going to help you get a better head start in the New Year.
How do you plan on saving money during the holidays? Please share your experience, thoughts, tips, and ask away any questions in the comment section below!
These are so helpful!
Thanks Hannah!
I’m always looking for ways to save money. I didn’t think about transferring money to a special account before, great idea!
Thanks jk!
Thanks for sharing, Christmas can get very expensive very fast, what with extended family, workmates and neighbors to get some Christmas presents.
will follow your tips to try and save some money this festive season.
You’ve got this Roamy!
Such great tips for saving money at the holidays! The Paribus app is great for getting price match refunds if you shop online. A d MyPoints is good for earning free gift cards that you can give as gifts or use to shop for Christmas.
Thanks Rebecca for sharing other options!
Extremely useful list. I often use point 9 regards asking for a price match and it has saved me tonnes of money, not just in the holiday season but year-round. Energy suppliers are especially good at asking for a price match!
Great blog.
Thanks so much Paul!
Separating your holiday spending money out of your regular cash is such a smart idea! I do that and then go get a prepaid visa so I don’t have to carry all the cash around! And this way I never overspend!
Great idea Kari!
I like that you included all possible expenses including food and drinks for having parties or going out. I think people forget about these expenses and tend to only budget for gifts. Things can add up really quickly. Great post.
Thanks Maura!
These are great tips. Going cash only is the best way to go. Thanks for sharing.
Thanks Natalie!
My biggest thing is planning ahead. If we don’t have a budget and stick to it… it never goes well. Thanks for these tips!
Thanks Carrie!
so many fabulous tips to save money during the holiday season.
I particularly love secret santa.
thanks for sharing this awesome post.
Glad you liked it Hari!
This is an amazing list but my favorite money saving tip is putting the budgeted money in a separate bank account. I never thought of that before but it is genius. Easy way to track and make sure you don’t spend more than necessary.
Thanks Caitlin!
Great tips! I really like the idea of buying gifts in bulk; it’s so much cheaper. Also like saving Christmas money in a separate account. It’s so easy to spend it if it’s in your main account!
Thanks Melissa!
This is a great article! I loathe Christmas for this very reason. Everyone is expected to go in debt buying presents. I never understood why why people buy presents in the first place.
I do buy gifts, I start months early, picking up something here and there. I don’t buy expensive gifts. I don’t break the bank. I shop around for good deals on said items.
I’ve had one amazing Christmas in my life and I couldn’t tell you what gifts I got. One year as a teen we had a family renunion at my grandparents cabin. We all played in the snow and enjoyed each others company. It was my best xmas becuase I was able to see family, that I hardly ever saw. Family and the snow was my gift.
Thanks Isabelle for sharing!
These tips are great! I’ve been hit hard by this virus this year, thankfully I don’t have kids to shop for just a boyfriend and a cat. I like the idea of using cash and I was trying to get use to it before the coin shortage ????????♀️. I’m pinning this post!
Thanks, Leslie!
I love #5 and #9!
I always set up a sinking fund for holiday seasons, it’s much more bearable to cover all the expenses that await!
And I’ve never actually done #9 – might do it this year! I never knew some stores will price match. I’ve only done this once with hotel bookings.
Thanks for the tips 🙂
Thanks, Wina! Yes definitely give it a shot and let us know your experience! Thanks for sharing!