One minute, you’re sipping margaritas on the beach and the next second, it’s pumpkin-spiced lattes! Is it us, or does the holiday season start earlier and earlier each year? We love that the holidays bring festive meals, gift-giving, and celebrations, but they can also be the source of some pretty cringe financial stress if you’re not careful. Between Halloween, Thanksgiving, and the end-of-year holidays, it’s easy to overspend and start the new year with a debt hangover.
But don’t worry! We’ve put together five simple and practical money-saving tips to help you get through the holidays without emptying your wallet. Check out our handy infographic below for a visual guide, and read on for more details on how you can apply these tricks this season.
1. Don’t get spooked by holiday spending: Set a budget early
One of the best ways to avoid holiday financial stress is to set a budget before the season even begins. It’s easy to get carried away with spending, but setting a clear limit on how much you’re willing to spend on gifts, food, travel, and decorations will keep you on track. Break your budget down into categories, and use apps like MoneyLion’s budgeting tool to track your expenses as you go.
2. Focus on experiences over expensive gifts
Instead of splurging on expensive presents, consider giving meaningful experiences. Whether it’s hosting a family movie night, making homemade holiday treats, or planning an outdoor activity, experiences can create lasting memories without a hefty price tag. Surveys show that many people actually prefer experience-based gifts, so get creative and think outside the gift-wrapped box.
3. Compare prices before you buy
Just because something is labeled as a holiday sale doesn’t mean it’s the best price. Always compare prices between different retailers before making big purchases. Tools like Google Shopping and CamelCamelCamel allow you to see price history and get alerts when items drop in price. This helps you avoid spending too much, especially during busy shopping seasons.
4. Shop smart: Take advantage of discounts and sales
Black Friday and Cyber Monday are great opportunities to score discounts on gifts, but don’t stop there! Many retailers offer holiday deals all season long. Make a list of what you need and avoid impulse buying, which is one of the biggest culprits behind holiday overspending. Use browser extensions like Honey to automatically apply coupons and cashback offers.
5. DIY your decorations and gifts
The holiday season is perfect for getting crafty. Instead of spending hundreds of dollars on decorations, consider making your own! You can find plenty of DIY ideas on Pinterest, from making wreaths to crafting ornaments. DIY gifts, like homemade cookies or personalized items, add a special touch and can save you a significant amount of money.
Bonus tip: Avoid the holiday debt trap
It’s tempting to put everything on a credit card during the holiday rush, but be careful. The key is to plan ahead and make sure you have a strategy to pay off any holiday debt quickly. Carrying a balance on your credit cards can result in high interest charges that extend well into the new year. If you do use credit, make sure to pay it off as soon as possible to avoid starting the next year in debt.
The bottom line
With a little planning and a few smart money-saving strategies, you can fully enjoy the holidays without worrying about your finances. The key is to budget, be mindful of sales, and focus on experiences rather than expensive gifts. By following these tips, you’ll be ready to celebrate the season without breaking the bank. Happy holidays, and don’t forget to share our festive infographic with your friends and family!