It’s easy to stress about money during the holidays, which can take some of the fun out of Christmas. According to The National Retail Federation, holiday spending this year is expected to grow between 2.5% and 3.5% from 2023. This totals around $989 billion in holiday spending. While the numbers are growing nationally, you don’t have to spend more this year. It is possible to focus on savings this Christmas and not put yourself in a precarious financial situation. Let’s take a look at some of the key strategies to help you save money during the holidays this year.
1. Come Up with a Strategy and Budget
First, for the most Christmas savings come up with a game plan. Decide what your gift-giving philosophy will be. Maybe you will focus on giving fewer presents this holiday but will focus on meaningful gifts. You should have a budget for each family member, friend, or co-worker. Most people spend $20-$50 per friend or colleague and $50-$100 per family member, but this number should work for your budget. There’s no need to spread yourself thin buying gifts. As you shop, make sure to track your spending either with a budgeting app or spreadsheet. Holding yourself accountable will make you less likely to fall for holiday marketing and impulse purchases.
2. Utilize Rebate Apps
One way to rack up Christmas savings is to use cash-back apps like Rakuten. Many banks also offer cash-back deals such as Bank of America. The more cash-back deals you can accrue the more you will save on your purchases.
3. Pay The Right Way
Don’t fall into the trap of charging everything onto a high-interest credit card. Also, beware of deferring payments with Shop Now Pay Later apps. They can often make you spend more and exceed your budget. Instead, opt for a 0% interest credit card or rewards card.
4. Compare Prices
One way to save money is to shop around before making purchases. It’s usually best to shop online rather than go to the mall where it’s difficult to compare prices. Consider using tools like Google Shopping to get the best price on items. Take your time when making purchases and do your research to get the most Christmas savings possible.
5. Cut Back on Other Spending This Month
If you haven’t been saving for Christmas spending throughout the year, you may need to cut back on other discretionary expenses this month. This may mean eating out less or skipping other non-essential spending. Next year, try putting aside at least $20 a month so that you’ll feel less of a pinch during the holiday season. Then, you can worry less and celebrate more.
6. Shop Off Brand
Is it possible to find similar items at a lower price? Try to find comparable items that don’t have name brands attached to them. For example, many of the items that you can purchase on Amazon have alternatives on sites like Temu for a discounted price. There’s nothing wrong with getting a little scrappy with your shopping to fit it into your budget.
7. Save with Homemade Gifts
Homemade gifts will not only help you with savings this Christmas but can be especially thoughtful. Is there anyone on your list that you can make cookies for? You can even assemble your own gift baskets instead of paying for a pre-made basket that usually has a high price tag. These can make great gifts for neighbors, teachers, and co-workers. You can even gift acts of service like promising to shovel your neighbor’s driveway or creating a meal train for new parents in your life. These gifts often mean more than things.
8. Shop The Resale Market
Secondhand items can make excellent gifts. Especially if you are shopping for designer items, this can save you a significant amount of money this Christmas. Sites like Poshmark, eBay, and The Real Real all have great deals on quality items, sometimes even new with tags. This will help you stretch your Christmas budget even further.
Focusing on Christmas Savings
Don’t let the noise of the holidays or social pressures make you spend more than you are comfortable with this Christmas. Stick to your budget and use these helpful Christmas savings tips to guide your spending. Come January, you’ll be happy that you didn’t overextend yourself.
How do you save money during the holidays? We would love to hear your thoughts on how you stick to your Christmas budget.
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Teri Monroe
Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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