Money Saving Tips For the Holiday Season
For some people, holiday shopping is fun and exciting. For others, it's an overwhelming and stressful routine. Whether the holiday season is a time of joy for you or a miserable experience with obligatory expenses, these tips will help you to save money and avoid the stress of festivities.

Set Up a Holiday Spending Plan
Start by creating a spending plan. A spending plan will help you get more for your money and avoid getting caught up in the spending frenzy. Come up with a sum you are comfortable spending during the holiday season and use it to build a list of holiday expenses. Set limits for how much you are willing to spend on gifts, decorations, parties, travel, and other expenditures that usually arise during holidays.
If you are unsure what is the right amount to spend on holidays, try budgeting. Budgeting works for everything, including holiday spending. It will help you to estimate how much you can afford to spend on holidays.
Related: What is a Budget and How to Start Budgeting?
Ways to Save Money on Holiday Gifts
Let's talk about ways to save money on holiday gifts first, since most people spend their money on presents during the holidays.
Make a Gift List
Make a list of people you need to buy gifts for and set a limit for each person. You can use this list to plan what to buy for each person by writing gift ideas next to each name. The limit will help you avoid shopping sprees and going over your budget.
Split the Gift Cost
Split the cost of a gift with someone else. You can spend less money on a much nicer gift. For example, split the cost with your siblings of a more expensive gift for your parents.
Propose A Gift Exchange
You can take the idea of splitting the gift costs one step further. Instead of buying a small gift for each family member, propose a gift exchange where you only buy a gift for one person. Your first step in organizing your gift exchange is to decide to whom every person will be giving a present. You may also agree on a price limit and ask everyone to bring in only one gift.
Gifts Don't Have to Be Expensive
The list will help you to come up with gift ideas, think them through, and make your presents personal. An inexpensive but thoughtful gift is worth more than an expensive gift that may never be used. Putting some thought into what those on your list would really like will help you avoid impulse purchases at trendy stores. A personalized gift will always be appreciated by people close to you, regardless of how much it costs.
Gifts Don't Have to Have Monetary Value
Giving a voucher for a "free night of babysitting" to your family members with children, or a "good for a home-cooked meal" certificate to your lonely relative may be the best present. And your family and friends might love nothing more than a visit from you.
Make Gifts
A homemade gift is a great way to save money and make a memorable present. Homemade gifts might not work for everyone on your list, but they may be the perfect present for some.
A homemade holiday gift can be anything from giving your friends some homemade jam, baking cookies for your kids' teachers, or knitting mittens for your nieces. You can also put your kids to work to make holiday cards for the grandparents. Homemade holiday cards are fun, personal, and unique.
The internet has an endless supply of homemade gift ideas, here are a few: Homemade Holiday Gift Ideas.
Set Boundaries With Your Friends and Family
If you want to spend less this holiday season, be transparent about your budget with your family and close friends before the season begins. While the conversation might seem awkward, honesty and transparency may release you from anxiety and pressure to spend money and help you achieve your financial goals.
You can tell your family and friends about your goals and your intention to save money, and they may support your decision and offer help.
Tips for Reducing Holiday Spending
Here are a few more ways to keep your spending in check this holiday season.
Avoid Shopping Sprees and Impulse Buying
Companies are good at enticing us to spend during the holiday season. As the season begins, we get bombarded by holiday ads, social posts, and marketing emails that urge us to buy, or else we will miss the opportunity. Everything from store displays to lighting and music is designed to condition us to spend.
Resist impulses by sticking to your shopping list and spending no more time in the store than necessary to buy what you planned to avoid the temptation to buy things you don't really need.
Don't Wait Until the Last Minute
Waiting until the last minute to do holiday shopping promotes impulse spending. You also may not find what you have planned in the holiday scramble and spend more on an alternative gift. Start early or shop for holiday deals year around to save big.
Shop For Holidays Deals Year Around
Who says you can't buy seasonal decorations or holiday gifts in May? The earlier you begin your holiday shopping, the more deals you will find and have more room to work with your holiday budget. Another benefit of shopping early is that you can avoid the holiday scramble altogether.
Buy things you know you will need when they are steeply discounted. Start with post-holiday sales. Buy decorations, wrapping paper, and other holiday stuff for a fraction of the original retail price. Shop throughout the year and pick up seasonal decorations at garage sales during spring cleanings when everyone else is trying to get rid of them.
Celebrate After the Holidays
Holiday travel costs skyrocket during the holiday season. Plan your family gathering for after the holiday to cut travel costs. It may feel a little awkward, but think if the time on the calendar really matters. This strategy will also help you save on gifts, as most holiday merchandise will be less expensive during post-holiday sales.
Make It a Potluck
If you plan a holiday party, you can save money on food by hosting a potluck. You can ask guests to bring their favorite holiday dishes. If you enjoy cooking, let your guests contribute the extras, such as drinks, desserts, and appetizers.
Final Word
Think what you miss most, the presents or the people? Focus on making memories rather than buying and accumulating stuff. Think of ways your family and friends can have fun together for free, like attending a local festival, making holiday crafts, having a game night, or volunteering.
There's nothing more valuable than spending time with your close ones during the holidays.