The holiday season is supposed to be the most wonderful time of the year, but between gifts, decorations, and travel, it’s easy for spending to get out of control. In fact, the National Retail Federation (NRF) has forecasted that holiday retail sales for 2025 will surpass $1 trillion for the first time, a sign that people are still spending even though many households feel the strain of higher costs and interest rates. Here are some tips and tricks to help you stay organized and enjoy the season without stressing about money.
1. The 50-30-10-10 Holiday Budget Plan
Before shopping begins, take time to create a list of who you’re buying for and set a realistic spending limit for gifts. Gift-giving is an important part of the holidays, but there are plenty of budget-friendly options to help you enjoy the season without guilt or overspending. Breaking down your budget into categories and tracking your expenses is a smart way to stay within your limits. While you should adjust your budget to fit your unique situation, a good starting point is the 50-30-10-10 approach: gifts (50%), parties and dining (30%), decorations (10%), and miscellaneous expenses (10%).
2. Get Creative: Gifting And Décor
You can save money while giving thoughtful gifts and making your home festive without overspending. Try DIY projects by crafting your own gifts or decorations or upcycle items you already have. Shopping secondhand or thrifting can uncover unique presents and décor items. You can also swap decorations with friends and family, reuse items from previous years, or even regift (which works especially well for versatile items like gift cards). With a little creativity, you can make both your gifts and your space intentional and memorable on a budget.
3. Meaningful Gifting
Sometimes memories and experiences hold more value than material gifts, depending on the person you’re giving to. Consider planning a family outing, hosting a cozy movie night or holiday baking day, or gifting an experience such as tickets to “The Nutcracker,” a local concert, or a day of ice skating. You can also give practical gifts that make experiences possible, such as travel gift cards or airline miles for family members or friends who visit from out of town. This thoughtful approach helps prioritize connection and shared joy over consumption.
4. Wrap Thoughtfully, Waste Less
This isn’t about being a penny pincher; it’s about being intentional with your spending and gifting with care, consciousness, and common sense. Did you know roughly 2.3 million pounds of wrapping paper end up in landfills every year? Instead of spending on gift wrap that will end up in the trash, look for stores that offer free wrapping services or gift boxes, and reuse packaging whenever possible. Many retailers even offer prepackaged gift specials that save time and waste. You can also get creative with wrapping by using newspapers, repurposed tissue paper, or other materials you already have at home. A fun and budget-friendly idea for families is to buy a roll of kraft paper for the kids to decorate, or to use their existing artwork as a personal and memorable gift wrap.
5. Use Cashback Offers, Credit Cards, and Reward Points
Stretch your holiday budget by using credit card points, loyalty points, frequent flier miles, or gift cards. Instead of spending cash, you would be tapping into rewards and resources you’ve already earned. Using cashback credit cards or shopping on cashback sites is a great way to ensure you’re getting something back when you spend. This strategy works best for those who already use credit cards responsibly and want to maximize the benefits of their spending. Just be sure to pay your credit card in full when it’s due to avoid interest charges or late fees.
6. Wallet-Friendly Celebrations
Consider hosting a potluck dinner where everyone contributes a dish or plan a gift exchange such as Secret Santa or a White Elephant party to ensure everyone receives a gift while keeping costs low. If you’re hosting, think about borrowing supplies like tables, chairs, and serving items instead of renting or buying them. And, if you don’t have any plans but want to have fun or get active in your community, look into local free events such as church-sponsored events, concerts, or holiday parades. You can usually find information on community boards, local news sites, or social media.
7. Stay Proactive Throughout The Year
Avoid the stress of last-minute buying by planning ahead and staying proactive. Even with a budget in place, it’s easy to lose track during the hectic holiday season. Monitoring your spending and setting aside money throughout the year helps you stay accountable and on track. For example, if you save $50 each month, by December you’ll have $600 dedicated to holiday spending. You can even automate this process with direct transfers to a holiday savings account. Starting your shopping early also helps spread out expenses and take advantage of seasonal sales for significant discounts. By saving and shopping throughout the year, you’ll reduce financial stress and be better prepared for the holidays.
Being prepared for holiday expenses means focusing on what truly matters and being intentional with your spending. By setting limits, shopping smart, planning ahead, and prioritizing meaningful purchases, you can create lasting memories and enjoy the holiday season without financial stress or regret.
Sources:
https://finance.yahoo.com/news/us-retail-growth-signals-upbeat-092656778.html
https://www.forbes.com/sites/truetamplin/article/holiday-budget/
https://www.fidelity.com/learning-center/smart-money/holiday-budgeting
https://www.msn.com/en-us/money/personalfinance/how-to-budget-for-a-stress-free-christmas-this-year-12-practical-tips/ss-AA1vCd93
https://www.focusonthefamily.com/parenting/christmas-on-a-budget-9-easy-money-saving-holiday-tips/
https://www.minted.com/lp/christmas-preparation-checklist
https://raleighnc.gov/landfill-and-reuse/news/take-steps-decrease-holiday-waste
