The holiday season is magical and fun, exciting and sacred- but it is also one of the most expensive times of the year. The costs can add up quickly between purchasing all the gifts, hosting or attending parties, travel expenses, and doing special family activities. But you don’t have to drain your wallet to create a memorable and meaningful holiday. There are ways to save money during the holidays to keep you within your budget and prevent you from going overboard and spending too much. It might take a little effort and intention on your part, but it’s worth not having to worry about big bills to pay in the New Year. Here are some practical tips to help you save money while still enjoying the season to its fullest.

10 Ways To Save Money During The Holidays

1. Set a Holiday Budget

Before the hustle and bustle begin, decide how much money you’re comfortable spending. Break your budget down into categories like gifts, food, decorations, and travel. A clear budget helps you stay on track and prevents post-holiday financial stress. The key is to stick to that budget. Sometimes, unpredictable expenses come during this time of year, so allow for flexibility with those, but do your best to adhere to the amounts you choose to spend on everything else. It might sometimes feel difficult to stay within your financial limits, but remember the most treasured moments of the holidays with family or friends are rarely about receiving big gifts.

2. Give Thoughtful, Not Expensive, Gifts

It’s easy to think a bigger price tag equals more thoughtfulness, but meaningful gifts often cost less. Those special gifts are the ones people might even like more- because you’ve put more intention and care into picking them out. Consider the following gift ideas to save money during the holidays:

DIY Gifts: Handmade items like baked goods, crafts, or personalized photo albums can show you care without breaking the bank.
Experience Gifts: Instead of material items, gift an experience like a movie night, homemade dinner, or a shared activity you know they’ll enjoy.
Gift Exchanges: To reduce the number of gifts you need to buy, organize a Secret Santa or White Elephant gift exchange with family or friends.

3. Plan Ahead and Shop Smart

Impulse buying is a budget killer. Make sure you take a minute to think before you buy that item you have in your hands. Make every gift count- which means don’t buy random gifts just for fun or you “think” someone might like—those purchases you pick up here and there can seriously add up. Be intentional with all your shopping- the best gifts have a lot of thought behind them. You can also take FULL advantage of all the sales during the holiday season. Almost everything you are looking for will be at a lower price- so do NOT buy anything for full price. Keep an eye on the items on your shopping list in various store sales, and only buy them during a really good sale when the price is much lower! It will be worth the wait! Here are a few more tips for making holiday shopping more affordable:

Use apps and websites to track deals and coupons.
Look for cashback offers or rewards programs.
Shop second-hand for unique gifts or decorations at thrift stores or online marketplaces.

4. Simplify Decorations

You don’t need to cover your house in lights or buy new decor to feel festive. Having the same traditional decorations, ornaments, lights, and holiday dishes is part of the wonderful holiday experience. I know it’s tempting to get new and shiny updated items to make your home bright and beautiful! But take a pass this year, and you can wait until the post-holiday sales to get them at a much lower price! Next year, you’ll love putting them out and feel good about the bargain price! Here are a few more tips to save money during the holidays.

Reuse and refresh your existing decorations.
Focus on small, meaningful touches like candles, greenery, or handmade ornaments.
If you love outdoor lights, consider energy-efficient LED options to save on electricity costs.

5. Cut Down on Holiday Cards

While holiday cards are a lovely tradition, they can be pricey. Instead of sending your annual photograph, think about writing a letter instead. The more personal you are, the more special it becomes. You can send your letter to close friends and family members, email it, and download a few pictures, and that connection will be better than any other expensive card you send. Two great tips to save money during the holidays with Christmas cards:

Go digital with e-cards or personalized emails.
If you still want to send Photograph cards, limit your mailing list to close friends and family.

6. Host Potluck Gatherings

Holiday entertaining doesn’t mean you need to shoulder the entire cost of a feast. With the price of groceries these days, that would be incredibly expensive. Instead, host a gathering where everyone contributes their dishes as well! You can have your guests bring any sides, salads, desserts, or even their favorite casserole dish. The cost of feeding everyone won’t be on you, and all can have a smorgasbord of delicious meals to try!

Invite guests to bring their favorite dish or dessert to share.
Keep your menu simple instead of an elaborate spread.
Assign specific dishes to different people so you have a balanced meal. (i.e., Kendra brings the salad, Bob brings the potatoes, and Carry brings a dessert.)
Remember, it’s not all about the food, but about connecting with people you love that matters most.

7. Make Travel Plans Early

Book flights and accommodations early to lock in lower prices. During the holiday season, prices usually skyrocket, but you can still find great deals on flights with some airlines. Watch out for flash special holiday sales and purchase your tickets when they come out. You might also want to consider these two tips to save money during the holidays when you travel.

Consider staying with family or friends instead of hotels.
Drive instead of flying for shorter distances.

8. Focus on Traditions, Not Things

The best memories come from shared experiences, not expensive gifts. Always remember that truth. Sure, it’s fun to get big gifts and enjoy high-ticket experiences with our kids, but your presence is the most valuable gift you can ever give to anyone. This has been said countless times, but for good reason- it’s TRUE. The memories of past holidays that are most treasured are the ones with everyone all together, snuggling on the couch, playing games, watching movies, or doing some fun traditional activity. Plan on focusing on what makes YOUR family time together special and do more of those things instead. Here are a few more ideas that can save money during the holidays.

Plan free or low-cost activities like baking cookies, watching holiday movies, or taking a walk to see holiday lights.
Involve your family in creating traditions that don’t revolve around spending money, like writing heartfelt notes to each other or volunteering together.

9. Encourage Kids to Help Save

If you have tweens or teens, use this season to teach financial responsibility. Talk to them about how to set up smart budgets with their money by showing them how your family budget works. This can be an excellent opportunity to teach your kids about costs, spending habits, managing money, and savings programs. Here are a few ideas to help with this.

Give them a budget for gifts and help them plan while making cost-wise decisions.
Discuss how experiences and thoughtful gestures can mean just as much as material items.
Talk about how sticking within a budget takes serious intention and effort.

10. Take Care of Yourself

Stress often leads to overspending and impulse purchases. Make time for self-care and relaxation so you don’t feel overwhelmed and pressured to make high-cost decisions at the last minute. If you can keep a balanced schedule and pace your shopping with careful intention, that will help you stick to your budget.

Enjoy moments of quiet reflection or engage in activities that bring you joy.
Take care of your physical health by getting enough rest and eating well.
Remember that the holidays are about connection, love, and gratitude—not perfection.

I hope you found some good ideas for you and your family to save money during the holidays here. Focusing on what matters most and planning intentionally can make this holiday season joyful and financially stress-free. Remember, expensive gifts or extravagant experiences don’t bring a family closer—quality time together, focusing on enjoying each other and making meaningful memories through family traditions and simple activities, is the best gift you could ever give them.

If you are still shopping for affordable gifts for your family, we have some great gift guides for your daughters for under $50 HERE, gift ideas under $50 for your sons HERE, and many great gifts under $25 for anyone HERE.