5 Ways To Save Money This Christmas

Christmas is a wonderful time full of joy, warmth and togetherness. The holiday spirit inspires beautiful decorations, fun activities and generous gift-giving. At the same time, this magical season can also be financially stressful. 

The National Retail Federation estimates consumer holiday spending will hit $902 per person this year. Holiday financial strain can be doubly stressful when coupled with high living costs or other financial concerns. However, you can make Christmas special while also managing your expenses. Read on for practical tips on how you can save money this Christmas while experiencing the season’s joy.

Before you dive into this year’s holiday spending, look at last year’s holiday expenses. Nerdwallet recommends pulling out your bank and credit card statements to examine where and how much money you spent. Did you overspend on decorations or gifts? Buy too much food for your holiday dinner? Splurge on a new holiday outfit?

By identifying where your money went last year, you can approach this year’s spending with more awareness. You should also factor in any changes to your finances such as unexpected expenses or debt. This reflection will help you set a realistic budget and highlight areas where you can be more intentional with your holiday spending.  

Just like Santa, you should make a list when gearing up for the holidays. According to Clever Girl Finance, it is a good idea to consider all your expenses (travel, gift wrap, holiday cards, travel, etc.) because things tend to add up. Once you have your list, set a maximum dollar amount for each category. The goal is to stay within the limit in each category.

If you want to stay away from using your credit card, set up a sinking fund and automate deposits. The earlier you do this, the more money you will save for your Christmas fund. Another benefit of starting early is you can take advantage of sales before the official start of the holiday season.

There is no way around spending during the holidays but you can save money this Christmas by shopping sales, using promo codes and leveraging money-saving apps. Newsweek suggests apps like Capital One Shopping, Shop Savvy, and Pay Pal Honey.

These apps will track the prices of items you have got your eye on and automatically apply any available promo codes to find you the best deal possible. If you are an Amazon shopper, Camel Camel Camel will do the same for Amazon items.

Exchanging gifts can get expensive when you have a large family or social circle, especially if you buy individual gifts for everyone. It feels great to see the joy your gifts bring, but you do not need to drain yourself financially to achieve that. Business Insider offers several alternatives to traditional gifting including:

• Secret Santa
• A White Elephant exchange
• Choosing group experiences over gifts

These options focus more on shared fun and creating memories with loved ones while also being more budget-friendly. If you need to purchase individual gifts, you can stay within budget by having a conversation with your family or social circle about setting a price limit.

Christmas also offers plenty of opportunities to use your creativity to save money. Instead of investing in professional holiday photos for your Christmas card, Fidelity proposes taking your own photos and sending an e-card. You can find inspiration online and make it a fun family activity. If photo cards aren’t your thing, handmade cards can become a holiday tradition. 

Decor and gift wrap can also be DIYed with supplies purchased at discount stores like Dollar Tree. They have a large selection of seasonal items that you can turn into one-of-a-kind decorations and gift packaging. Pinterest has fun and creative ideas that are easy to replicate and don’t require expensive materials. Use this as an opportunity to get into the holiday spirit with your family or friends by hosting an artsy evening.