How to save money during the holidays

Create a holiday budget

Creating a budget for the holidays is the best way to stop yourself from overspending. Look at where you currently stand financially and set a realistic budget for how much money can go toward your holiday expenses without causing you debt. 

A budget is meant to keep you on track. Once you have one, stick to it.

Categorize your budget

Don’t just think about gifts for your budget; use it to look at all the areas you may want to spend money. So yes, include gifts, but also food and drink, decorations, any travel costs, charitable giving, and entertainment/outings. 

When it comes to gifts, you may want to categorize your holiday budget by separating the people you’ll spend more on from those you’ll spend less on. You’re more likely to spend money on gifts for your immediate family than a present for a coworker.

Keep your budget with you when shopping

While many of us may have an idea of how much we want to spend on the holidays, it often gets forgotten once we start shopping.

Keeping your budget with you when shopping is the best way to avoid this. There's a way to do this no matter which way you prefer to shop.

Shop online? Tape a copy of your budget to your computer so you’ll always be able to see it.

Use your phone to shop? Set your alarm for 30 minutes or so to remind you to look at your budget. You could even set your screen lock to a picture of your budget, so you’ll see it before even opening your phone.

Prefer to shop in person? You can put a sticky note with the main points of your budget on your credit card; this way you'll be reminded of your spending limits when you reach for the card.

A budget creates freedom, not restrictions. It puts you in control of your spending.

How to save money on gifts during the holidays

Gifts are often the most expensive part of holiday spending. There are some easy ways to ensure you don’t overspend, without sacrificing the quality or thoughtfulness of the presents.

Set spending limits

As we said, you’ll likely want to have separate spending categories for different people. Resist the urge to exceed these limits even if you see ‘the perfect gift.’ Once you do that for one person, you’ll likely do it for everyone. 

Remember, the best gifts often don’t have the biggest price tags.

Take advantage of sales and price-matching

Sales are constantly advertised this time of year. Retailers do all they can to entice shoppers to buy from them. 

If you have specific items you want to buy, it’s best to look at multiple stores and compare prices. You may be able to snag something for cheaper by spending half an hour looking online. 

Also, take advantage of price-matching. This can be particularly effective when grocery shopping for large meals. Apps like Flipp can help you compare prices at other grocery stores in your area to ensure you always get the best deals.

Give experiences and homemade gifts

You don’t need to spend tons of money to make someone feel special. There are many ways to get creative when it comes to gift-giving. 

Do you know people with young children who haven’t had a night out in ages? Create a homemade coupon for a free night of babysitting. You can also cook some homemade baked goods to go with it.

Can’t afford to get someone a high-priced concert ticket? Give them a gift card so they can at least lower the cost for themselves. The same goes for gift cards from restaurants as well.

Gifts like these allow others to create lasting memories without cleaning out your bank account.

How to save money on holiday experiences

Gifts aren’t the only thing that quickly adds costs during the holidays. Holiday experiences can quickly blow your budget. While balancing your budget and social life might seem challenging there are always ways to cut costs and still have fun.

Create your own holiday events

We all know many communities have simple free events you can attend. There are often small free concerts, tree lighting ceremonies, and drive-through light show displays that don’t cost a nickel.

But you don’t have to be stuck with what others have put together; you can hold your own. 

Organize a holiday movie marathon with your friends; have each person pick a movie, then watch them all together.

Hold a potluck of baked goods or homemade food with friends or family. It’s an easy way for everyone to try multiple different holiday foods without much cost.

For something really simple, gather some friends or family for a walk around the neighbourhood and try to spot the house with the biggest holiday display or the most lights.

Remember what the holidays are really about

The holiday season should be focused on spending time with loved ones and creating memories together. Rarely is the best part of the holiday season something you spent lots of money on. This is a time to slow down, enjoy shared traditions, and make meaningful moments that don’t come with a price tag.

Focus on connecting with others, not spending.

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