It is estimated that in 2021 the average person spent $998 on gifts and other holiday related expenses.
We can all choose to spend less and avoid getting caught up in the whirlwind that surrounds Christmas. Deciding instead to be more thoughtful about how we celebrate the holiday. Experiences are more meaningful than things.
We often feel pressured to exchange gifts with everyone close to us. But it is ok to cut back on or eliminate gift giving. Start by having honest conversations with those around you. You may find that they too want to make the holiday more about sharing time and experiences and less about spending money.
Spending quality time with another person is a great alternative to gift giving. Invite them over for a meal, plan a walk or hike, visit a museum or art gallery, attend a concert or lecture, go to a movie. Just plan something you will both enjoy.
Another way to give is by doing something for someone that would be helpful to them. Volunteer to cook a dinner for the family, babysit so the parents can have a night out, or help someone with chores they cannot do for themselves, use your knowledge in a particular area to provide a service that is useful to them.
Even if you decide you will still purchase some gifts and holiday items you can find ways to save.
Set a Budget & Make a List
Create a Christmas budget that includes everything related to the holiday. Gifts, food, travel and decorations and stick to it. Make a gift and grocery list so that you are not tempted to overspend.
Have a Gift Exchange
Instead of buying gifts for all of your friends and family setup a gift exchange. A simple way to do this is to put all of the names in a basket. Each person draws a name and that is the person they will buy a gift for. You can also do a children’s only exchange or a family exchange.
Make Your Own Gifts
Use any talent you have to come up with creative gift ideas. My grandma crocheted and everyone loved receiving blankets, slippers and scarves at Christmas. My Mom was an excellent baker and passed out cookie trays each year.
Plan Ahead
According to a survey done by LendingTree 36% of consumers went into debt at Christmas in 2021, the average owing $1,249.00.
To avoid debt, save money throughout the year. This can be done by simply saving money in a jar or envelope at home or by depositing money into a savings account. Check with your bank or credit union some offer Christmas Club savings accounts.
Cut Back Before Christmas
Anytime is a good time to go over your budget and trim expenses but if you are looking for extra money at Christmas, find things you can eliminate, cable and streaming services, expensive cell phone plans, newspaper and magazine subscription, takeout food and beverages and entertainment.
Use Credit Card Cash Rewards
Save up your cash reward points and use them for Christmas shopping.
Shop All Year
You don’t have to wait for the holiday season to start Christmas shopping. Watch for big sale days like Black Friday, Cyber Monday, Amazon Prime day, Memorial Day, Labor Day, Halloween, Thanksgiving and Christmas. Shop when the sales happen. Not only will you save money, but you can be done Christmas shopping well before the holiday.
Thrift Shop
Thrift shops, the Salvation Army and the Goodwill are great places to find holiday decorations, gift boxes and bags, ribbons and bows, artificial Christmas trees and items that you can use to make your own gifts, for example you might find a lovely picture frame and use it to frame children’s artwork to give as a gift.
The dollar store is also a great place to buy wrapping paper, tissue paper, gift bags, bows and ribbons, holiday decorations and greeting cards.
Save on Groceries
Turkeys, hams and other holiday food items go on sale after Thanksgiving, stock up then for Christmas. If you serve candy at your Christmas gatherings buy it right after Halloween when it is marked down for a fraction of the cost. Candy also makes a great stocking stuffer.
Watch weekly ads for sales and shop at discount stores like Aldi.
When hosting Christmas dinner ask each person to bring something, a covered dish, dessert or a beverage.
Buy Holiday Items After Christmas
Holiday decorations, artificial Christmas trees, wrapping paper, gift bags, Christmas cards and other holiday items go on sale after Christmas. Stock up then, not only will you save money, but you will be well prepared for next year.
Plan Travel in Advance
If you will be driving to your destination start saving gas, lodging and food money a few months in advance. And use the GasBuddy app to find the lowest gas prices. Consider packing food for the trip instead of dining out.
If you are flying, use websites like
to find low-cost air fare and hotel rooms.
If possible be flexible with travel dates. Rates are often higher a few days or the week before Christmas but if you fly on Christmas Eve or Christmas day the rates are typically lower. Save travel rewards points for the holiday.
Send eCards
Instead of buying Christmas cards and paying for postage consider eCards.
Make Your Own Gift Tags and Post Cards
Use last year’s Christmas cards to make personalized gift tags. Use the front of the card to make post cards.
Recycle Wrapping Paper & Gift Bags or Use Alternatives
Save wrapping paper and use it to wrap gifts next year. Or use alternatives to wrapping paper such as paper bags, pictures drawn by children or newspaper. Save gift bags, ribbon and bows and reuse them. Not only will this save you money, but it is good for the environment.
Use Browser Shopping Tools
Use browser tools like the Microsoft Edge Shopping Tool, Capital One Shopping and Honey do find the best deals and apply coupon codes when shopping online. See my article on how to use each tool. Browser Tools to Save Money
Find the Best Shipping Rates
Use sites like
and
These sites find the cheapest way to mail a package. They compare prices between multiple carriers like UPS, USPS, FedEx, Sendle, and DHL.
Be Careful with Electricity Costs
Use energy-efficient LED Christmas lights. They use 90% less energy than traditional lights. Put lights on a timer so that they turn on and turn off automatically. Don’t leave lights on overnight.
The Tech Minimalist 