8 Money Saving Tips for the Holidays

It’s the most wonderful time of the year, and you know what that can mean: additional expenses, holiday spending and blown budgets. But you can lessen your financial anxiety if you approach the season of giving with a thoughtful holiday savings plan and holiday budgeting tips.

Unfortunately, many people throw out their budget during the holidays. In 2023, personal finance company Achieve found that half of American consumers expected to take on debt to pay for the holidays, and 37% believed it would take two or more months to pay off all the bills. 

Saving money on gifts and curbing holiday spending doesn’t have to mean you’re a grinch. If you’re looking to save money during the holidays and avoid debt this year, use these tips and kick the stress that comes with it to the curb.

1. Make It a Potluck

Sharing a meal or celebrating with family and friends is one of the best parts of holiday celebrations. But it can get expensive, whether you’re hosting gatherings in your home or going out to a nice restaurant. To save money on food during the holidays, you could opt to host the gathering, then ask everyone to bring a dish with them. This will help you minimize the huge grocery bill that often comes with hosting.

A spreadsheet or sign-up sheet can help organize so that you don’t end up with six plates of brownies and no vegetable sides. And if cooking is part of the fun for you, then let guests pitch in with the extras, like cocktail fixings, desserts or appetizer trays.

2. Get Creative With Gifting

Gift-giving can really blow your budget, especially if you love to hear exclamations of delight when the wrapping paper comes off. And sometimes it can feel like gift-giving obligations balloon with expectations that you’ll give gifts to family, friends, acquaintances, service providers, coworkers and more. 

But there are plenty of ways to minimize the account hit when it comes to gift-giving. Strategies like Secret Santa work great for office parties, get-togethers with extended family and celebrations with friends. Don’t be nervous about asking relatives and friends to change traditions or nix gifting altogether. It’s likely that others are looking to save money, too. Or you could consider suggesting a new tradition, such as gift cost caps, or giving only books, food items or intangible items like music playlists to one another. As an added bonus, you’ll lose the stress of shopping and enjoy the opportunity to focus on the experience of hanging out and celebrating with loved ones. 

3. Make a List and Check It Twice

For the gifts you must buy, the best money saving tip is to make a plan. Don’t just head to the mall and buy whatever strikes your fancy that day. That can make for a fun outing, but it can also quickly blow your budget. Make a list of the items you want to buy for loved ones, then do your research online to see where and when you can get the best deal. 

Think outside the box, too. Did you know life insurance makes a great gift?

4. Shop on Small Business Saturday

Instead of buying the latest gadget for someone, explore local boutiques on Small Business Saturday. You might find unique gifts that will impart more meaning to the receiver, like a piece of artisan jewelry, an eco-friendly bath product, a delicious treat from the place where you live or a hand-stitched backpack. Plus, you’ll likely spend less money and feel better about making a purchase that supports your community.

5. Use Rewards Points

One of the best holiday money saving tips revolves around your rewards points. Examine your credit and debit cards rewards systems to redeem gift cards, cash, airline miles and more that you can apply toward holiday spending. You can give gift cards as presents or use them to buy specific items, groceries and even holiday decorations. Is your niece hoping to travel to Paris next summer? She’ll love getting some airline miles!

6. Use DIY Decor

If you’re a new homeowner or just starting out on your own, you might not have much for holiday decorations. Instead of splurging on new items, think of free and inexpensive ways to jazz up your home. Hang last year’s holiday cards on a ribbon and add the new ones as they arrive. A big bag of inexpensive tealights can transform your home into a twinkling winter wonderland. If it’s in your wheelhouse, get on Pinterest and have fun creating DIY projects like pinecone wreaths or tree ornaments.

7. Don’t Fall Prey to Glitz

Sparkly clothing and holiday-themed tchotchkes fill stores this time of year. But remember that you’ll have to store them all somewhere. Avoid impulse buys that will end up at the back of the closet in a few weeks. If you want decorations, you could shop the post-holiday sales when they are heavily discounted and store them away for next year. And if you’re in need of party attire, think of ways to holiday-up an old favorite with a colorful scarf or earrings, rather than buying a new ensemble. 

8. Take a Trip

Eschew the holidays altogether. Instead of buying gifts and going to gatherings, put your money toward a sensible, fun vacation. If you’re in the Southwest, consider a snowy December trip. Those in colder climes might enjoy a long weekend on the beach. Enjoy the experience and the memories!

Holiday Budget Concerns Be Gone

Don’t let budget concerns put a damper on your holiday enjoyment. Talk to your Farm Bureau agent today about budgeting and money tips for the holidays and throughout the year, including ways to save on energy costs when the weather gets chilly.