10 Spending Solutions for the Holiday Season, According to Experts
Written by
Martin Dasko
Edited by
Elizabeth Constantineau
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The holiday season is upon us, and the events are quickly piling up. As much joy as this time of year can bring, it also can be expensive as you spend money on gifts and holiday events.
We contacted financial experts to gather spending solutions for the holiday season to ensure that you don’t rack up credit card debt that you have to stress about in 2024.
What are spending solutions that you can adhere to during the holiday season?
Also see ways to control credit card during the holidays.
Budget for All Holiday Travel and Events
“Events during holiday season start to really stack up,” according to financial coaches Haley and Justin at Price of Avocado Toast. “Identify what you might spend at each event — and subsequently decide you want to pass if you’re trying to save some money.”
You want to ensure that you budget for all travel and events. If you’re planning on visiting family or friends out of town, you may have to consider fuel costs and renting a place to stay. You may also have to decide which events you’ll skip this year since they don’t fit your budget. You don’t want to go over budget because you didn’t plan for all of the events.
Decide How Many People You’re Getting Gifts For
“The best way to make a holiday budget is to make a list of all the people you want to get gifts for,” said Deacon Hayes, founder of Well Kept Wallet. “Then figure out how much money you have to spend for the holidays. For instance, if you have $500 to spend and 10 people to buy gifts for, then you have $50 per person to spend.”
It’s crucial that you calculate how much flexibility you have in your regular budgeting for spending money during the holidays. You also want to have a clear plan for how much you’re spending on gifts.
“From your household budget, you should be able to determine how much you can and want to spend,” said Tanya Peterson, vice president of brand at Achieve. “Then list everything and everyone you anticipate spending on this holiday season, with costs. To be as detailed and realistic as possible, this will take some thought and time.”
Factor All Holiday-Related Expenses
“You should also make sure you factor in other expenses like cooking the holiday dinner, Christmas decorations and other holiday expenses so that you don’t go over your total household budget for the month,” Hayes said.
It’s essential to remember that these holiday expenses will come on top of your other fixed costs. You don’t want to forget about the little things that can quickly add up to make a dent in your budget.
Give Only What You Can Afford
“Give what you can afford and don’t go into debt on holiday spending,” Peterson said. “Do not try to give to equal what someone gave you last year, enough presents to make a big pile under the tree, or whatever other measure might lure you into overspending.”
You want to be realistic with your spending so you don’t go overboard with how much you allocate toward gifts.
Keep a Shopping List
“One of the best ways you can save money during the holidays is by making a list of the items that you want to buy,” Hayes said. “Then keep an eye out for deals as you get closer to the holidays.”
Peterson echoed a similar statement: “Keep a copy of your list with you so that when you see the right gift at the right price, you can purchase it. Set aside a basket, closet shelf or other area as your gift repository at home. Attach your list. Then check off gifts as they’re purchased so you don’t over-shop or duplicate.”
Use Online Shopping Tools
“You can also use a coupon browser extension that will let you know the best deal for the particular product that you are looking to purchase,” Hayes said.
Many comparison tools are available to ensure you get the best deal on your gifts. You don’t want to overspend on an item when you can avoid it.
Plan Your Shopping in Advance
“Don’t just go browsing — online or in person,” Peterson said. “Instead, map out what stores you want to check out, with the order in which you’ll do so. Know what you want to look for at each store. If you can, when shopping in person, try to do so at less-crowded hours.”
You don’t want to browse aimlessly or walk into a mall without a plan because impulse purchases can hurt your finances.
Consider Giving Your Time
“The gift of time truly can mean much more than a packaged gift and be a wonderful gift to your budget,” Peterson said. “Make plans to shovel snow during the winter for a neighbor, offer babysitting services during the holiday season, plan a neighborhood caroling party, or make a video for far-away family.”
You don’t have to spend money on all of your gifts; you can offer up your services instead. You never know how valuable a simple act of kindness could be to someone during the holidays.
Get Creative With Your Gifts
“Get creative with tips and gifts that you plan on giving during the holidays,” Peterson said. “A small, thoughtful gift can show your appreciation; maybe it’s a batch of holiday cookies or a small gift card for a local coffee shop. Also, remember that some people — teachers, mail carriers, delivery workers, doctors, coaches — are generally prohibited from receiving cash gifts.”
You can use this holiday season as an opportunity to support local or make homemade gifts for everyone you want to add to your gift list.
Watch Your Other Spending During This Time
“As far as dining out, rein it in this month because events are usually centered around some type of food — and that might be somewhere some of your money goes,” according to Haley and Justin. “So make sure your dining-out expenses aren’t inflated as well.”
Because you may be out more often than usual, it can be tempting to dine out more frequently or treat yourself. You want to be careful of these expenses that can creep up when you’re not paying attention.
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