The days are getting shorter, the temperature is dropping, and before you know it, the holiday season will be upon us. While this time of the year is magical, the holidays also can bring loads of stress along with them – especially when it comes to money. According to a recent study, shoppers are predicted to spend an average of $1,638 on Christmas in 2025.1
Buying gifts, traveling to see family, and hosting holiday parties are not exactly budget friendly. However, a little planning can help you enjoy the ”most wonderful time of the year” without breaking the bank. Are you ready for a festive season where you don’t have to cringe when the credit card bill arrives in January? Read our holiday savings tips to learn how.
Set a Budget and Stick to It
It’s easy to go overboard with holiday spending – especially on gifts. In fact, roughly 41 percent of U.S. adults who celebrate the holidays said they’d be willing to go into debt, or deeper into debt, for shopping; however, preparation and budgeting can help prevent overspending and post-holiday financial stress. Before you even start shopping, sit down and determine how much money you can reasonably afford to spend on the holidays this year.
To make it easy on yourself, set a spending limit for each person on your list. If possible, give yourself a little wiggle room for extra costs such as wrapping paper and shipping. For more budgeting tips, take a look at our budgeting on a limited income article.
Make a Gift List
After you’ve determined a budget, it’s time to play Santa’s helper. Make a list of everyone you would like to buy a gift for – prioritizing the people closest to you. Write down what you would like to gift each person this year and the cost associated with each present, but be mindful of your budget. By writing down your planned purchases in advance, you won’t be shocked when you get your credit card statement.
Creating a list also helps you to be more intentional with your holiday gift giving. Set aside time to think about what you’re buying before you go into the store. This way, you might be able to get someone one thing they really want or need, as opposed to ten things you’re purchasing just for the sake of giving a lot of gifts. Remember: quality over quantity.
Start Shopping Early – and Take Advantage of Sales
According to Oberlo, 90 percent of US consumers start their holiday shopping prior to December. Starting early gives you the opportunity to avoid the hustle and bustle that comes with last-minute shopping, and you can maximize your dollars by taking advantage of sales – especially for the pricier items on your list.
If you’re an avid online shopper, websites like Rakuten allow you to earn cashback on your purchases if you go through them. Combine your Rakuten cashback with your credit card rewards and you might be surprised at the pretty penny you earned – on money you were going to spend anyway. But make sure you stay vigilent, this time of year online shoppers are more susceptible to online shopping scams. Read more about how to stay safe and report online shopping fraud.
Always Check for Online Store Coupon Codes
When it comes to holiday savings, one of the savviest tricks to have up your sleeve is hunting for online store coupon codes. Before you hit ”checkout” next time, take a few minutes to scour the web for a coupon code. A few minutes of searching can often yield substantial discounts, free shipping, free gifts, and other enticing deals. Not only will your wallet thank you, but you might just find yourself with some extra holiday cheer in your budget.
Redeem Your Cash Back and Rewards Points Near the Holidays
Do you find yourself needing a little help offsetting holiday expenses? You might notice your grocery bills getting more expensive as you’re hosting parties, or maybe you find yourself filling up your gas tank more often as a result of extra trips to the mall. You might not have included these extras in your budget, but your credit card rewards might be able to help offset your extra expenses. If you save your rewards throughout the year, you’ll have a little extra spending freedom when the festive season rolls around.
