It’s no secret that the holiday season can be a doozy for the wallet. According to a recent Bankrate survey, 28% of consumers feel stressed about the cost of holiday shopping and expect it to strain their budget.^* With seasonal traditions like decorating, enjoying lavish meals, traveling to see family and giving gifts, it’s easy to feel torn between enjoying the festivities and keeping your finances in check. Don’t worry! We have five tips to help you save money on holiday shopping — without skimping on the joy or the fun.

1. Set a holiday budget — and stick to it.

It’s easy to get swept up in the holiday spirit and overspend. Your heart might grow three sizes, but that doesn’t mean your credit card bill needs to follow suit. By making a list (and checking it twice), you can make sure your heart doesn’t run away with your head. That way you’ll start 2025 on solid financial ground rather than chasing down extra debt. (New to budgeting? Learn how to get started with budgeting basics.)

2. Get creative with low-cost or homemade gifts.

If your budget doesn’t leave much wiggle room for extra expenses around the holidays, you still have options to show love without a hefty price tag. Remember, some of the most meaningful gifts can be economical or even handmade. Here are a few ideas:

• Kind words: Write a letter or create a journal filled with words of encouragement or your favorite memories. A simple handwritten note can go a long way to showing someone you care.
• Thrifted items: Secondhand stores are the perfect way to find distinctive items at an affordable price. Put what you know about your giftee to work and find something they’d love, such as quirky home décor, vintage cookware, a funny mug or a gently used copy of their favorite book.
• Homemade goodies: If you’ve got a special skill, you can most likely use it to create a low-cost but thoughtful gift. Do you love to bake? Make some special homemade treats. Are you an artist? Use your talents to create something.
• Service to others: Make personalized coupon books to offer your time for things like a home-cooked meal, babysitting or help with a household chore. These thoughtful gestures often mean more than material items.

3. Talk about expectations around gifts in advance.

Before the holidays arrive, have an honest conversation with your family about simplifying traditions to relieve financial stress while keeping the holiday spirit alive. If you have a large extended family, consider making holiday gift giving more budget friendly by sharing the gift-giving load.

One strategy we love is Secret Santa. Instead of buying gifts for everyone, each person draws a name and gets a special gift for that person according to a modest price limit agreed upon by the group. You can even customize the game and assign more than one giftee to each person if that fits your family better. Secret Santa is a great way to reduce the stress and financial burden of gift-giving while ensuring everyone receives a thoughtful gift.

4. Create memories with experiences.

Sometimes, the best gifts aren’t physical things. Creating experiences can be a memorable and cost-effective way to celebrate. Instead of focusing on gifts, try out a new tradition, such as:

• Hosting a family movie night, complete with popcorn and candy.
• Setting up a backyard fire pit, roasting s’mores and telling stories.
• Planning a photo scavenger hunt around your neighborhood.
• Having a family game night or a friendly competition — the winner gets the last piece of pie!
• Singing karaoke in your living room, with everyone doing celebrity impressions.

Whatever fits your family’s style, the time spent together will create lasting memories.

5. Take advantage of special offers at local businesses.

As you’re shopping for holiday gifts, don’t forget to check out your local businesses. Local spots often run specials on seasonal products, gift certificates for future services and more. When you shop locally, more of your dollars stay in the local economy, helping small businesses thrive. It’s a great way to spread the holiday cheer all around! Learn more about ways to support local businesses.

Got more holiday shopping tips? Share your ideas with us on Facebook or Instagram! We’d love to hear how you’re saving this season!

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• General Education