14 holiday shopping & budgeting tips to save money this year

The holidays can be a wonderful time to spend time with loved ones, but the cost of gift giving, travel, festivities and other holiday cheer often adds up fast. However, with the right strategies in place, you can find ways to save money.  

How can you save money during the holidays? 

If you’re feeling a pinch in your wallet this holiday season, you’re not alone. According to recent Bank Rate data, more than a quarter of Americans (28%) are feeling stressed about holiday shopping costs and 27% plan to take on debt to cover holiday costs.^[1] To cut costs, consider some of the below strategies to save on gifts, travel, and more.  

1. Make a holiday budget 

Before the holiday season kicks off, create a budget that includes all of your anticipated holiday costs, like gifts, travel, pet boarding, events, extra groceries, and seasonal home decor. As the holidays approach, make sure to stick to your budget and avoid temptations that may cause you to overspend.^[2]  

2. Set up a holiday savings account 

Based on your holiday budget, put money aside periodically into a holiday fund. You can stash $20 a week into an envelope or have a percentage of your paycheck automatically deposited into a savings account. Try not to dip into your holiday cookie jar for other expenses. 

3. Shop early 

Consider what you’ll need this holiday season, and start buying early. Whether it’s stocking up on party supplies, buying gifts throughout the year, or purchasing clearance holiday decorations for next season, there are many strategies to get a head start. Shopping early helps spread out spending over time, allowing you to avoid the holiday rush. In some cases, you may be able to save when you buy in bulk or shop sales.  

4. Make a shopping list 

To avoid overspending or impulse purchases, create a list of what you need to buy. When shopping in person or online, be sure to stick to your list. From gifts to groceries, a well-thought-out list can help you more easily comparison-shop and stay on budget. 

5. Don’t pay for shipping 

Shopping online is convenient, but it can come with added shipping fees. To save money, take advantage of free shipping offers. If you’re a last-minute shopper, consider waiting until National Free Shipping Day^[3], an annual December event where thousands of retailers offer free shipping. Some participating stores also waive minimum ordering requirements and offer additional discounts. 

6. Skip Black Friday 

It may be tempting to take advantage of Black Friday and Cyber Monday, but the deals aren’t always what they’re cracked up to be. Still, the hype often lures people into piling their carts high with budget-busting impulse buys. This year, consider opting out altogether or if you do feel the need to shop on these sale days, stick to your list and budget. 

7. Plan travel carefully 

Staying home for the holidays saves the most cash, but it’s not always possible to skip holiday travel. The cost of airfare tends to increase in the last six weeks of the year. Book early and be flexible about what days you choose to fly. In some cases, it’s less expensive to fly on the holiday itself instead of the days leading up to it. Try to book rental cars and hotels early, and if you have travel rewards, the holiday is a great time to cash in. While it may not be as comfortable as a hotel, staying with friends and family can also help you save.  

8. Keep festivities simple 

Throwing a holiday party or hosting a holiday dinner can be a big investment of time, money, and energy. Keep meals simple to minimize costs and trips to the grocery store. Skipping the alcohol can help you save, too. Or if you feel comfortable, ask guests to bring their favorite side dishes, desserts, or drinks. You can also skip the full sit-down meal, and host a holiday open house or gathering with finger foods, pastries, appetizers, or just dessert.  

9. Pay cash 

It may be tempting to put all of your holiday spending on your credit cards, but you could rack up interest charges if you’re not able to pay off balances in full. Instead, limit credit card use, and try to pay for gifts and other holidays with cash. If you have trouble sticking to your budget when gift shopping, you can even consider giving cash for gifts. Although it’s not the most creative, sometimes it’s more than fine to be the one who pops a $20 in a card.^[2]   

10. Get creative 

Whether it’s gifts, cooking, or decorations, thinking outside the box can help you save during the holidays. Upcycle holiday decor, make cookies from scratch, or give people something you made with love. You can also thrift your holiday outfits and even give gently used items, like books and jewelry, as gifts. Think about ways to get crafty when you wrap presents, too. Recycle old wrapping paper or use something unexpected, like old newspapers. Mother Nature is also a great source of inspiration during the holidays—pinecones and evergreen branches work well for free (and fragrant) holiday decor.  

11. Limit gifts 

Rather than exchanging gifts with everyone in your family or friend circle, consider setting up a holiday gift exchange like a Secret Santa or Holiday Swap. Or, you can set boundaries, like only giving gifts to children under 18. Some families decide to chip in on one big-ticket gift or a family experience that everyone can enjoy, like a trip. Another option is to skip gifting entirely and focus on togetherness.  

12. Use technology 

Buying holiday cards and postage can add up quickly. Instead, send e-cards to friends and family or find an online service that will print and mail holiday cards at a discount. Shopping apps can help you get cash back and discounts online. You can also use budgeting apps to help you stick to your holiday budget.  

13. Check out free activities  

The holidays come with many types of family-friendly activities, usually at no cost. From town and city tree lightings and holiday walks to light displays and pond ice skating, you can usually find something to do every weekend during the holiday season. Many schools and churches also offer free holiday concerts, too.  

14. Watch out for porch pirates 

Don’t let a package thief ruin your holiday. Sign up for UPS^® My Choice, USPS^® Informed Delivery, or FedEx^® Delivery Manager—free services that let you know when your packages are scheduled to arrive. You can also have Amazon^® orders delivered to an Amazon Hub Locker near you. USPS and UPS will also hold and redirect mail and packages for you. 

The bottom line 

A little planning can go a long way to help you save and feel in control financially this holiday season. Choose a strategy that makes sense for your family’s needs and budget. Remember, it’s okay to start new traditions or pass on things that align with your budget or financial values. If you’re still paying off last year’s holiday debt, don’t beat yourself up. There are solutions available to help you get back on track, like a debt consolidation loan for your high-interest credit card.     

1. USA Today. “Forget Halloween, it's Christmas already for some American shoppers.” 

2. Consumer Financial Protection Bureau. “Budgeting: How to create a budget and stick with it.” 

3. National Today. "National Free Shipping Day."