The holiday season is here, and it’s time to start making your shopping list—and checking it twice! You’ll want to make sure everyone in the family gets what they want, but without overspending. Since money doesn’t grow on trees, setting a budget is key for stress-free holiday shopping.
But don’t worry—whether you’re celebrating Thanksgiving on a budget, Christmas on a budget, or both, you can still make this season special on any budget.
We’ve got some great tips and ideas to help you save money and enjoy the holidays to the fullest in 2024!
Setting a Budget for Thanksgiving and Christmas
The key to saving money for your holiday shopping? Setting a budget. Having a budget is a smart way to manage your money no matter the time of year. Read below to understand how creating a budget can help you save money during the holidays.
Importance of setting a budget
It’s simple–when you set a budget for yourself, you’re being responsible and smartly managing your finances. By taking a good look at what you earn each month as well as all of your monthly expenses–such as food, utilities, credit card payments, and any other bills–you can figure out how much money you have left over each month. From there, you can decide how much money you’re able to save each month and how much you can spend on things such as holiday items.
Creating and adhering to a budget brings several benefits that can enhance your financial well-being:
- Preventing Debt: By sticking to your budget and only spending what you can truly afford, you can avoid accumulating unnecessary debt, such as high credit card balances.
- Reducing Stress: Living within your means significantly eases financial stress. A well-planned budget allows you to concentrate on what you can enjoy rather than worry about what’s beyond your reach.
- Focusing Your Spending: Knowing your spending limits helps you prioritize your purchases, ensuring that your hard-earned money goes toward meaningful items. During the holidays, this could mean allocating funds for the gifts that will bring the most joy to your loved ones.
Tips for setting a realistic budget
When you’re setting a budget, it’s important to set one that you’re realistically able to stick to. Here are a few ways to do that.
- Review your past spending. You can learn a few things by looking at how much you’ve spent during past holiday seasons. If you spent a little bit too much one year and had to deal with debt as a result, that’s a good lesson because now you know you can’t spend that much again. On the other hand, if you found yourself with more money left over than you expected one year, you can use that as a guide and know that you can spend a little more without worry.
- Consider all expenses. During the holiday season, it’s easy to focus your spending on one thing–gifts. But if you don’t take into consideration all of the other holiday expenses, you could find yourself in trouble. Things like wrapping paper, decorations, cards, boxes, extra food, stocking stuffers, and plenty of other costs add up, so make sure all of that is included in your holiday budget.
- Adjust for income changes. Maybe you earned a promotion or a raise. Or perhaps you had to take a pay cut. Either way, make sure to update your budget with those income changes in mind. An increase in your pay or a well-earned bonus can help you expand your budget so you’re able to spend more. But if your income is less, you’ll have to adjust your budget so you’re not spending as much as you normally would.
Budgeting tools
When trying to set a budget, it’s helpful to know that there are plenty of tools to help you save money.
- Budgeting apps. All you need is a phone to get yourself on a budget thanks to the many available budgeting apps. Investopedia provides a helpful list of the best apps in 2023 for every type of spender and saver.
- On their list is You Need a Budget (YNAB) as the best overall budgeting app
- Mint as the best free budgeting app
- Simplifi by Quicken as the best for cash flow
- PocketGuard as the best app for people who overspend
- Zeta as the best budgeting app for couples.
- Spreadsheets. Sometimes a simple spreadsheet like Microsoft Excel or Google Sheets is all you need to keep all of your expenses organized. Quicken is also a helpful budgeting program.
- Online calculators. From basic calculators to financial calculators, a quick Google search will provide you with plenty of options that help you do the math when it comes to keeping a budget.
For more tips on how to prepare a budget for the holidays, read our article, Holiday Budgeting and Planning Tips!
DIY Thanksgiving and Christmas decorations
Creating your own Thanksgiving and Christmas decorations offers several benefits for your family during the holiday season. First, it saves money; while holiday decorations can add up, making your own can significantly reduce costs. You can use items you already have at home—there are countless DIY decoration ideas available online that can inspire you.
Additionally, crafting decorations allows you to express your creativity and enjoy quality time with family as you create together. Homemade decorations also carry personal significance. By adding touches like names and dates, you’ll create cherished keepsakes and unforgettable family memories.
DIY decoration ideas
The sky’s the limit when it comes to do-it-yourself decoration ideas. Here are just a few:
- Centerpieces
- Wreaths
- Ornaments
- Candle holders
- Garland
- Napkin rings
How can you save money by making your decorations? By buying your materials in bulk for a discounted rate, by using recycled materials, and also by reusing items you already have in your home.
If you have a Pinterest account, search there for some great inspiration and specific ideas.
Affordable meal ideas for the holidays
Another way to save money during the holidays is by making a budget-friendly meal and by shopping smart.
First, decide on a menu and list everything you’d like to serve as well as how many people you’ll be serving. From there, make an ingredient list.
Next, compare prices and sales between your local grocery stores and warehouse stores (Costco, Sam’s Club, BJ’s, etc.) to find the best deals on the items you need for your meal. Finally, take advantage of store coupons, either in your local newspaper or online.
Most supermarkets begin having sales on Thanksgiving meal items–such as turkeys, potatoes, vegetables, cranberry sauce, stuffing, and pies–in early to mid-November. So be sure to watch for those sales and do some comparison shopping to get yourself the best deals on your holiday meals!
Ideas for affordable Thanksgiving and Christmas dishes
Fill your table with affordably delicious dishes. These are staples at the holiday meal table and can be purchased at a low price in most cases.
- Mashed potatoes. If you like to mash the potatoes yourself, a bag of potatoes is generally very affordable. However, if you want to go the easier route, you can buy pouches or boxes of instant mashed potatoes, usually for less than $2 each. Most are made with real potatoes and are available in different flavors as well.
- Homemade stuffing. If you have bread, seasonings, broth, and some veggies in the house, you’ve got what you need for tasty, budget-friendly stuffing!
- Roasted vegetables. Fresh produce can be inexpensive, so pick up some vegetables to roast for a healthy side dish. If you have a vegetable garden, you can save even more by using your homegrown veggies!
Along with budget-friendly menu items, there are also a few ways to save even more when shopping for groceries.
- Choose generic brands. In many cases, generic-brand items are virtually identical to their more expensive name-brand counterparts. So, rather than pay extra for a label and a recognizable name, go for store brands to get the most for your money. These include Good & Gather (Target), Market Pantry (Target), Great Value (Walmart), Kirkland Signature (Costco), Member’s Mark (Sam’s Club), Wellesley Farms (BJ’s), and a variety of grocery store generic brands.
- Shop at discount stores. You’re going to save money when you shop at a discount store. Consider visiting places like Ollie’s Bargain Outlet, Big Lots, dollar stores, Aldi, Lidl, Save-A-Lot, Trader Joe’s, and Grocery Outlet. If these stores are nearby, take advantage of their great prices and quality products.
- Use cashback apps. If you haven’t already, download cashback apps like Capital One Shopping or Rakuten. These free apps allow you to earn money back when you shop at participating stores. For instance, if you order groceries online from Walmart through Rakuten, you might receive 2% back on your total purchase. While it may not seem like much at first, those savings can add up quickly. Plus, these apps often offer limited-time promotions where that 2% cashback could increase to 6% for a few days.
Gift giving on a budget
The heart of the holiday season lies in family gatherings and shared meals, but no celebration is complete without the joy of gift-giving.
Gifts often make up a significant portion of your holiday shopping budget, and it’s easy to overspend while trying to find the perfect present. However, with some creativity and careful planning, you can give thoughtful gifts without stretching your budget or ending up in debt.
Remember, it truly is the thought that counts, and your loved ones will appreciate any gesture, no matter the cost.
Tips for affordable gift-giving
In addition to shopping smart and keeping an eye out for sales, consider these budget-friendly options for gift-giving:
- Create Homemade Gifts: Use your special talents to make personalized gifts that will be cherished. If you knit or crochet, consider crafting a hat, scarf, or blanket in the recipient’s favorite colors. Artists can create a unique drawing or painting and frame it affordably. Writers might pen a heartfelt poem or short story. Handmade gifts often carry more meaning due to the thought and effort involved.
- Opt for Gift Cards: Gift cards are universally appreciated and available at virtually every restaurant and retailer. Many businesses offer bonuses during the holiday season, such as a $10 gift card when you purchase $50 worth. This way, you can provide your loved ones with even more value without overspending.
- Give Experiences: Instead of material gifts, consider gifting experiences like skydiving, wine tasting, cooking lessons, or a fun day out like go-karting or whale watching. You can often find great deals on these experiences through sites like Groupon, allowing you to create lasting memories without breaking the bank.
- Regift Thoughtfully: If you have unused gifts or items lying around, consider regifting them to someone who would appreciate them. It’s a practical way to give a nice present without spending anything. Don’t worry; your secret is safe!
- Participate in Gift Exchanges: Organize a White Elephant, Secret Santa, or Pollyanna gift exchange. By setting a budget limit, you can enjoy the fun of trading gifts while keeping costs down.
- Volunteer Your Time: Consider giving the gift of time to a loved one or a charitable organization. Volunteering is free and can be incredibly rewarding for both you and those you help.
By thinking outside the box and exploring these options, you can enjoy the holiday season without the financial stress often associated with gift-giving.
Black Friday and Cyber Monday deals
Just about every retailer has a Black Friday and Cyber Monday sale, but certain product categories remain the most popular for shoppers on these days.
Electronics generally dominate the sales, as stores offer big discounts on items such as TVs, computers, phones, headphones, and appliances. But you can find great deals in literally every other category–clothing, home goods, gadgets, and even cars.
Tips for finding the best deals
How can you find the best Black Friday and Cyber Monday deals? Here are a few ways:
- Compare similar products. If you’re looking to buy a new TV during the holiday season, for example, the first step is to do your homework and compare brands. Check out expert and customer reviews on the products you’re considering to see how well-made and reliable they are.
- Research prices. Once you’ve narrowed down your choice to a few brands, start looking at prices. Every store that sells TVs will have some type of Black Friday or Cyber Monday sale on televisions. Keep a list of each store and their price for the items you’re thinking of buying. Then dig even deeper…do you have a store credit card that offers an extra discount? For example, Target’s Red Card gives you an extra 5% off purchases. That makes a huge difference on an item like a TV. Remember when we talked about cashback apps? Be sure to use those when you’re calculating final prices. Walmart may offer only 1% cash back on electronics, but Best Buy could be offering 3% at the same time. That will also make a big difference in price. The bottom line is, consider all kinds of discounts before making your purchase.
- Set a budget. As we mentioned before, setting a budget and sticking to it keeps you from spending more than you can afford. If a TV is someone’s big gift this holiday season, they might not get much else besides that if you work within your budget.
Here are some other ways to avoid overspending during Black Friday and Cyber Monday sales.
- Make a list and stick to it. Don’t let those huge discounts tempt you. As soon as you go off of your list, you’re going to start overspending. Stay with what’s on your list, no matter how low some prices are.
- Avoid impulse buying. Sticking to your gift list helps you avoid buying impulse items simply because they’re on sale. If you don’t need the item and it’s not on your list, just keep moving.
- Pay with cash. This is a great way to stick to your budget. Because if you have $300 in cash with you, and you want to buy more than $300 worth of gifts, you’re out of luck. It’s harder to be that disciplined when you’re charging gifts on your credit card, which will ultimately lead to debt you don’t want.
Spirit has no budget!
The commercialism of Thanksgiving and Christmas makes it easy to get swept away in the season. And while all of those things are fun, the most important part of the season is spending time with family and friends and making wonderful memories you’ll cherish forever. The last thing you want is for debt to ruin all of that.
By creating a budget ahead of the Thanksgiving and Christmas holidays, saving money by creating your own decorations, shopping wisely for your holiday feasts, and putting in the time to find the best deals on gifts, you can spend your entire holiday season basking in all the joy that comes with this most wonderful time of year without a single worry about money.
Sun Loan wishes you and your loved ones a Happy Thanksgiving, Merry Christmas, and a joyous holiday season!
