The holiday season is supposed to be “the most wonderful time of the year,” but let’s face it: it can also be the most expensive. Between gifts, decorations, holiday meals, and travel, it’s easy for costs to spiral. But with a little planning, you can avoid the post-holiday wallet shock and actually enjoy the festivities without the financial strain. Here’s how to save up for Christmas shopping, no matter where you’re starting from.
1. Start With a Budget (Yes, Really)
It sounds simple, but the first step is actually setting a budget. Make a list of everyone you plan to shop for, along with a dollar amount you’re comfortable spending on each person. Don’t forget other holiday expenses like wrapping paper, decorations, travel, and food. Add everything up—this total is what you’re aiming to save.
For example, if you want to keep it around $300 total, and you have 10 weeks until Christmas, that means you should aim to save $30 per week. Breaking it down makes the amount feel manageable.
2. Set Up a “Holiday Fund” and Automate Savings
Once you know your goal, set up a dedicated “holiday fund” in a savings account or a cash envelope. If possible, automate transfers into this account weekly or biweekly. Even small transfers add up, and by the time December arrives, you’ll have a stash set aside that’s meant only for holiday spending.
Pro tip: Consider using a high-yield savings account for this fund if you have time before your holiday purchases. Even a bit of interest can add to your savings without any extra effort on your part!
3. Cut Back on Small Expenses
Think about small ways you can save each week to fund your holiday shopping. Simple swaps like brewing coffee at home, skipping one takeout meal a week, or temporarily pausing subscriptions can make a big difference.
To track your progress, challenge yourself to “find” $5-$10 in your budget each week and put it directly into your holiday fund. Those little savings add up faster than you might think.
4. Declutter and Sell Unused Items
Take a look around your home for items you no longer need. Sites like Facebook Marketplace, Poshmark, or eBay are great for selling everything from clothes to electronics. Not only will this bring in extra cash for your holiday fund, but it will also help make room for new gifts and decorations!
5. Use Cashback Apps and Rewards
Cashback apps like Rakuten, Honey, or Ibotta give you money back for shopping online. Check these apps before making any purchases, especially if you’re buying items you’d buy anyway. You could even turn the rewards into a virtual savings account to help fund your Christmas spending.
Additionally, if you have credit card rewards points, consider redeeming them for gift cards, which you can use for holiday shopping or even for giving as gifts themselves.
6. Get Creative With Gifts
Consider giving meaningful, budget-friendly gifts this year. Here are a few ideas:
- DIY Gifts: Think homemade candles, baked goods, or personalized photo frames. DIY gifts are often more heartfelt and can save you tons.
- Gift Your Skills: Are you a good cook, photographer, or have a knack for organization? Offer your services as a gift. “A month of babysitting” or “a home-cooked meal” is thoughtful and affordable.
- Secret Santa: If you have a big family or friend group, suggest doing a Secret Santa exchange instead of buying for everyone. You’ll save money, and each person will get one thoughtful gift rather than several smaller ones.
7. Hunt for Deals Early
Start shopping early to avoid the holiday rush (and inflated prices). Sign up for retailer newsletters to get early access to sales, and set up price alerts for items on your list using tools like CamelCamelCamel (for Amazon) or Honey’s price tracker.
Bonus tip: Many stores have pre-Black Friday and Cyber Monday sales throughout November. If you see a great deal, don’t hesitate—grab it early and stash it away.
8. Earn Extra Cash
If you have some extra time, consider taking on a small side hustle to boost your holiday fund. This could be anything from selling crafts on Etsy, doing freelance work, babysitting, or offering a seasonal service like pet-sitting or snow shoveling. Even a few extra hours a week can help cover your holiday budget.
9. Skip Unnecessary Extras
Do you really need a new Christmas sweater this year? And maybe that extra wreath can wait. Try to prioritize spending on things that will bring the most joy and memories rather than getting caught up in all the “extras.” You’ll find that paring back on non-essentials frees up a lot more for gift-giving.
10. Be Mindful and Remember the Reason for the Season
It’s easy to get caught up in the frenzy of holiday shopping, but remember, the holidays are about spending time with loved ones, not racking up expenses. Try to focus on the things that matter most—quality time, meaningful traditions, and the memories you’re creating—rather than feeling pressured to spend beyond your means.
The Bottom Line
Saving for Christmas doesn’t have to be stressful. By setting up a budget, starting early, finding creative ways to save, and staying mindful about your spending, you can have a wonderful holiday season without the financial worry. With a little planning, you can enjoy a joyful, debt-free Christmas and start the new year feeling financially secure.