Easy Ways to Save During the Holidays

Posted: December 7th, 2023
Updated: December 30th, 2024

Did you know that in 2022 US consumers spent over $900 billion on Christmas? Whew! That’s a lot! And with 2023 being a year filled with increased living expenses, how can you possibly stay within your budget when you are already strapped for Christmas cash? Here are some ideas and fun, festive, and inexpensive ways to celebrate Christmas on a budget.

First, make a list. It works for Santa! Who do you want or have to give presents to and how much do you want to spend? Talk to your family, friends, or coworkers about setting a spending limit. Remember, everybody is in a different financial situation and would probably welcome somebody taking the pressure off of spending. Nobody wants to go in debt for Christmas. Stick to your list and check it twice.

Of course the best way to save money for Christmas is to start in January for the next December. But who really thinks of that?! But if you are that organized, buy gifts all year long and go ahead and wrap them in the paper you got on sale the day after Christmas or just figure a Holiday Fund into your budget. Didn’t plan ahead? That’s ok. Make it a Cash Christmas. Pay for everything during the holidays with cash. This would include gifts, food, decorations, and clothes. An easy way to do this would be the envelope method. Set a budget, get the cash, label your envelopes, divide your cash into each category. It’s an easy way to help you not overspend. Checkout our previous blog: Are You Stuffed With Money? It goes into the money stuffing idea in more detail. Still need some extra cash. Before you get more stuff sell some old stuff. BOOM!  Extra money and room for new stuff. Some other ideas could be ask for extra hours at work to fill in for people on vacay, get a part time gig working seasonal hours, drive for Uber or Lyft, or pet sit for people out of town.

Some Quick Tips:

• Limit your gifts to just family.
• Trim your gift list. Would a card or baked goods be enough?
• Talk to your family. Maybe everyone would like to cut back. You could draw names or only give gifts to the kids.
• Shop online to cross check for the best price and bundle your orders to save on shipping.
• Share the cost of one, big nice present. This works well for siblings to parents, team to coaches, students to teachers.
• Regift unused items. Come on! It’s not a dirty word! Everybody has gifts they don’t want or need. Thrifty gifties make for smart savings!
• Don’t let old gift cards go to waste. Regift them!
• Create your own e-card. You’ll save on postage and your eco-friendly friends will love it!
• Potluck parties help to spread out the expenses and work load. It adds variety to your dinner and you get to try everybody’s favorite food. Make it an event and combine it with a Christmas movie or local parade.
• Make presents personal. Do an experience like a play or concert or a trip to a zoo or aquarium. Have dinner and a movie, bake and decorate Christmas cookies, or make homemade ornaments.

Holiday spending can creep up on you. Don’t get “wrapped” up in overspending. Some people spend like crazy during the holiday season and then worry about how to pay for it in January. Don’t do that! Sticking to a budget is important during the holidays and all year long. Check out our blogs Save $100 This Month or Payday Not Big Enough? Here are Some Frugal Living Tips. They have some good ideas about how to make a budget and stay out of debt all year long. Christmas is a time of joy and fellowship with family and friends. It is not a competition. Base your gifts on sentiment rather than dollar amount. Spend your hard earned money on what’s most important to you!

Merry Christmas from all of us
at 3D Financial!