What are the best ways to cut down on holiday spending?

The holiday season can be one of the most joyful—and costly—times of the year. With gifts, decorations, festive meals, and travel, expenses can quickly add up and leave you feeling the financial strain.

But with a little planning, there are smart ways to keep spending in check without sacrificing the spirit of the season. This guide covers the best ways to cut down on holiday spending, so you can enjoy a stress-free holiday and stick to your budget.

Host a potluck-style holiday meal to share food costs

Hosting a holiday meal can be pricey, but making it potluck-style helps spread the cost. Each guest brings a dish, which means less stress on your budget and a variety of foods for everyone to enjoy. It’s a simple way to save money while keeping your meal festive.

To learn more: 100+ Frugal Meals for When You’re Broke or on a Budget

Use cashback apps specifically for holiday shopping

Cashback apps are a smart way to stretch your holiday budget. By earning cash on things you were already going to buy, you’re cutting down on the final cost.

These little rewards can add up fast, making holiday shopping much less of a burden.

To learn more: Best Cash Back Apps: How to Earn Money and Save Money

Give “time coupons” for services or experiences instead of physical gifts

Physical gifts aren’t the only way to show you care. “Time coupons” let you offer experiences, like a free babysitting night or a home-cooked meal. They’re meaningful and often more memorable, plus they help you avoid overspending on traditional gifts.

To learn more: How to Spend ZERO at Christmas in a Materialistic Society

Reuse or repurpose old decorations instead of buying new ones

Holiday decorations can quickly add up, but you don’t need to buy new ones every year. Repurpose what you have to create a fresh look without the extra expense.

Simple touches like rearranging ornaments or using last year’s décor differently can save you money.

To learn more: Epic Frugal Christmas Ideas with No Money or Very Little

Limit gifts to homemade or DIY crafts

Gifts from the heart are often the most appreciated, and homemade crafts fit the bill. Not only are they budget-friendly, but they also feel personal. Handmade items show you’ve put thought and effort into the gift, which can make the holiday season more meaningful.

To learn more: Awesome Gift Ideas When you’re Broke

Set a strict limit on holiday-related activities (parties, events) to reduce costs

The holidays bring endless events and invites, but each one costs money. Setting a limit on the number of gatherings can help you stick to your budget.

Choosing just a few key activities makes the season special and keeps your spending in check.

To learn more: Prep Your Christmas Budget In Time for the Holidays

Buy wrapping paper, cards, and decorations after the holidays for next year

Stocking up on post-holiday sales is smart for next year’s celebrations. These items are often marked down significantly, so you can save big. Planning ahead means you’re not caught paying full price when the holiday season rolls around again.

Plan holiday travel during off-peak days to save on flights and accommodations

If holiday travel is a must, try booking on off-peak days. This small change can save you a lot on flights and hotels. Plus, traveling when it’s less crowded can make the journey more enjoyable without stretching your wallet too much.

To learn more: 5 Genius Ideas to Save Money on Holiday Travel Costs

Shop second-hand for holiday gifts or décor

Thrift shops and second-hand stores are great places for unique holiday finds at a fraction of the price. From quirky decorations to unique gifts, second-hand shopping can add charm to your holiday without the high costs.

Use digital e-cards or handmade cards instead of store-bought ones

Make your own greeting cards or send e-cards to save on costs. Both options cut costs while adding a personal touch. E-cards are especially budget-friendly, and handmade cards let you share a little extra creativity with loved ones.

Organize a “white elephant” gift exchange to reduce the number of gifts

A “white elephant” exchange is fun and budget-friendly since each person only buys one gift. It’s a lighthearted way to share the holiday spirit without everyone having to buy for the entire group. Plus, it adds some fun to the celebration.

To learn more: 30 Best No Gift Christmas Ideas as in No Presents at Christmas

Volunteer as a family instead of exchanging gifts

Consider giving time together instead of traditional gifts. Volunteering as a family brings people closer while doing good for others. It’s a rewarding way to celebrate without the financial pressure of exchanging presents.

To learn more: 45 Best Family Christmas Gifts: Top Ideas for the Whole Crew

Swap holiday attire with friends or family rather than buying new outfits

Festive outfits can be pricey, so consider swapping clothes with friends or family. You’ll get a fresh look for holiday events without spending a dime, and everyone can enjoy a new-to-them outfit without the guilt of overspending.

Implement a “four-gift rule” (something they want, need, wear, and read)

The “four-gift rule” is a great way to cut back on excess gifts. It helps you focus on thoughtful, practical items, making the holiday more meaningful and manageable. Plus, it sets clear limits, helping you stick to your holiday budget.

To learn more: The Most Epic Gift Ideas for Kids Under $10

Make your own advent calendar with low-cost or homemade surprises

Advent calendars can be pricey, but making your own can save money and feel even more special. Fill it with little treats, notes, or homemade items for a personal touch that doesn’t break the bank.

To learn more: The Ultimate Christmas Bucket List – 125+ Fun Ideas to Do

Download Your Christmas Budget Template

This template can be a lifesaver when planning your holiday spending. It keeps track of everything from gifts to events, helping you stick to a set budget.

With a clear plan in place, you can enjoy the season without overspending.

To learn more: Christmas Budget Template: 6 Tips for a More Adorable Holiday Season

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