How to Save Money This Christmas: 25 Helpful Tips

If you want to rock around the Christmas tree without worrying about racking up Christmas debt, you’re in the right place. I’ve got plenty of ways you can be more thoughtful in your spending and saving during the holiday season. Here are 25 tips to help you celebrate Christmas on a budget.

Tips to Save Money at Christmas

1. Decide your philosophy on gift-giving.

Normally, my first suggestion—no matter what you’re spending on—is to budget. And I’ll get there. But before you budget, my very first money-saving Christmas tip is this: Come up with a philosophy around Christmas gift-giving.

What does giving mean to you? Why is it something that you value? Maybe you love finding the perfect presents, or you want to impress people with how much you can afford to spend. On the other hand, you might feel obligated to buy stuff because of traditions or social media pressure. These inner motivations can really affect how you view the season.

Be honest with yourself. Think about why you’re buying presents before thinking about how you’ll pay for them.

2. Make a budget before you start shopping.

Now that you’re in a good mindset, you can do what it takes to really win during the holidays: budget. Yep—if you want to stay on Santa’s nice list, set a limit for how much you’re going to spend and stick to it. You can use this Christmas Present Planner as a guide, and download the free EveryDollar budget app to get started. It’s what I use every year to track my Christmas spending!

3. Track your spending as you go.

Speaking of tracking spending . . . Lots of people spend like crazy through December without checking in on their budget. Instead, they wait to worry about it in January. Don’t. Do. That. Track your expenses as you go so you don’t end up overspending and ruining this month’s and next month’s budgets.

4. Cut back on other spending.

First of all, don’t spend outside of your comfort zone this season or any other season.

If you’ve been shopping throughout the year or stashing cash in your Christmas sinking fund, you might be set. But if not, you’ll have to free up money from somewhere else in your budget by spending less on some nonessential categories in December to make up for the extra Christmas costs.

(Here are more Tips to Make More Money This Christmas!)

Tips to Save Money on Christmas Gifts

5. Choose time over money.

For some people, spending quality time together really is better than a physical gift. You can save money this year by being intentional about being together—in whatever way you can, whether that’s in person enjoying holiday activities or on a video call connecting with loved ones in other states. Give experiences instead of accessories and exchange clutter for conversations.

6. Shop early—or throughout the year.

Don’t wait for Black Friday to start Christmas shopping—look for sales all year long. Grab that stuffed Sasquatch on clearance in July for your bigfoot-loving nephew. When you’re mindful of your list throughout the year, you’ll spread out both the spending and the stress (and maybe even get rid of the stress altogether).

If you missed the chance to jump on the early shopping train this year, remember it in January when you’re budgeting for the next Christmas season!

7. Give fewer gifts.

While you’re in the spirit of trimming the tree, trim down your Christmas list too. Of course, you do have a bit of holiday obligation to deal with. You can’t pass around gifts at family Christmas and conveniently forget someone! No one wants to hear, “Oh, sorry . . . You’re the only person I couldn’t find anything for.”

Start budgeting with EveryDollar today!

But not everyone needs a store-bought gift. You can send your tidings of comfort and joy to some people on your list in other ways, like:

• Making a batch of cookies and giving a few in a pretty snack bag tied with ribbon
• Hosting a Christmas movie night where guests bring a dish to share
• Getting crafty with homemade decorations using dried fruit, pine boughs, popcorn, cranberries and other festive touches
• Giving a meaningful act of service—like cooking an elderly neighbor’s dinner, watching a friend’s pet over the holidays, or shoveling walkways if you live somewhere snowy
• Drawing a name out of a hat so you won’t have to buy a gift for every family member

And if you want to save even more money, don’t be afraid to ask your family what their giving plans are. Are you all giving just to give? Do you all want to cut back? A clear conversation about skipping presents this year for a shared meal (if you’re able) and stocking stuffers instead could be just the thing both your family and your finances need.

8. Resist retail marketing.

Americans are predicted to spend between $979.5 billion and $989 billion on the holidays this year.¹ That’s a lot.

Don’t let yourself get wrapped up in all the sales and marketing. You may think retailers are posting deals from the goodness of their hearts to help you—but their real goal is to get in on that $989 billion holiday “magic.” Unsubscribe to store emails, unfollow influencers trying to sell you stuff you don’t need, and stick with your budget!

9. Use old gift cards.

Think about all the gift cards you have stuffed in your junk drawer and how much money you have left on them! And don’t forget the cards you’ll never use because they’re from places you never shop at, eat at or visit. Think of the partial cards like discounts and use them to buy presents. Regift (which is not a bad word, as I’ll explain later) unused cards to people who’ll use and appreciate them. Don’t let those little pieces of plastic go to waste this Christmas! Just make sure the cards are still valid and loaded with money.

10. Make online orders early.

Ordering online means shopping from the convenience of your very own couch as you sip hot chocolate in your fuzzy slippers. That’s the kind of multitasking I’m all about. Cross-check the price on that plush puppy across multiple stores without even having to put on shoes.

But make sure you do this early enough to get the cheapest online shipping options. The last thing you need is a budget ruined by all those additional rush order costs. (Prancer and Dancer don’t deliver overnight without hefty fees, after all.)

11. Combine your online orders.

Speaking of shipping, plenty of stores offer it free of charge when you spend a minimum amount. So do that! If you see the perfect superhero-themed sweatshirt you know your dad would love, but you’re below the minimum amount for free shipping, keep shopping at that store. Is there anything for your brother or best friend on that same website? Don’t buy stuff just to buy stuff—but be thoughtful as you combine orders to lower shipping costs.

Also, here’s a quick Christmas tip: Check out the ship-to-store option. A lot of retailers offer this free and don’t require a minimum order. You’ll have to brave the cold to pick up your order, but if you ship several things to the store together, you’ll only have to bundle up once.

12. Live by your shopping list.

There’s a reason Santa checks his list twice, and it’s not because he’s forgetful! When you ignore the list, it’s so much easier to overspend. If you realize you forgot a friend, of course you can add them in. But once you’ve got your philosophy and budget set, don’t get swept up in the Christmas spirit and start buying every snowflake-themed item you find for every person you’ve ever met.

13. Say no to random gift exchanges.

Here’s a hot Christmas tip: Opt out of the white elephant or junk-for-junk gift exchanges at your work, small group or book club. Christmas is expensive enough without participating in these forced social events. Be kind, but just say no (thank you).

14. Go in on a group gift.

A bigger, more expensive gift doesn’t have to be off the table just because you’re budgeting for Christmas. Just go in on it with other people. Get all your siblings to pitch in and buy one big gift for the grandparents. Ask other soccer team parents to go in for a nice gift card for your kid’s coach. Email all the parents in your kid’s class to donate small items for a gift basket for the teacher.

They say sharing is caring, after all. And sharing the cost of one big present is a great way to give well—while still caring for your budget.

15. Don’t be afraid to regift.

Regifting has a bad reputation, but it’s time to embrace it. Think of regifting as relocating presents that need a home. Seriously, it’s okay to regift! But there are ground rules. You don’t want to give your sister the pink and silver cocktail shaker your mom gave you. Mostly because she’s her daughter too, and moms remember what gifts they give their kids.

But the brand-new slow cooker your well-meaning in-laws gave you when you already have two could easily be given to your newlywed best friend. There’s nothing wrong with this kind of savvy regifting for new or unused items. It’ll save you money and keep a gift from going to the donation pile or landfill.

16. Make handmade presents.

If you want to give something personal, memorable and one of a kind, make it! Seriously. This is a great way to do Christmas on a budget. Pinterest has a ton of ideas and instructions for DIY Christmas gifts. And if you aren’t super crafty, try baking a sweet treat, putting together a gift basket of someone’s favorite things, or whipping up some sugar scrubs with your own pantry ingredients. Nothing says Merry Christmas like something made from the heart.

Tips to Make More Money This Christmas

17. Sell your stuff.

It’s almost that time of year again—when people give you new stuff. So why don’t you sell some of your old stuff in preparation? You’ll make room for those new things, and you’ll also make some money so you can buy other people gifts.

Yes, I’m making light of it. You and I both know the Christmas season isn’t all about stuff! But really—try clearing out some things you never use and make some money in the process. Resale sites like Facebook Marketplace, Craigslist, Poshmark and eBay are great starting points to sell things online.

18. Pick up an extra job (temporarily).

If you’re able, make some extra cash to cover the costs of Christmas. I’m talking about getting a side hustle like:

• Driving for Uber or Lyft
• Delivering food
• Picking up holiday hours at a seasonal job
• Dog sitting while people are traveling for the holidays
• Babysitting while people Christmas shop
• Hanging Christmas lights in your neighborhood
• Wrapping gifts in your community

Pro tip: Offer services on your neighborhood Facebook group or chat forums at work.

But remember—if money’s tight this year and you’re having income issues already, don’t put pressure on yourself to make more so you can spend more. And don’t fall into the temptation of going into debt. That’s just going to make this year’s spending next year’s problem. It isn’t worth it!

Instead, remember that Christmas isn’t a competition and that other joys of the season are much more meaningful (and memorable).

Other Tips for Christmas Spending

19. Spend less on traditions.

Why do you send Christmas cards to everyone you’ve ever met? Because your mom always did? Why do you buy a new place setting even though you already have snowman-themed dishes? Because your grandmother always did?

You can save money this Christmas by cutting extras—starting with pricey traditions that don’t actually mean that much to you. I’m not suggesting you stop making paper snowflakes or watching your favorite Christmas movies. Those sound like beautiful (and fun) traditions! But making a 20-layer, authentic German chocolate cake for Santa? Maybe save the time, expense and stress. Santa doesn’t need the extra calories anyway.

20. Get thrifty with stocking stuffers.

The stockings are hung from the chimney with care in hopes that you’ll fill them so they don’t stay bare. Yikes. That’d be a real Christmas nightmare! You don’t want to leave your stockings empty, and luckily there are easy ways to fill those oversize socks without spending all your holiday budget.

Buy your candy on sale. And don’t feel pressured to fill the stockings with expensive gifts. Check out the dollar store or discount malls for gel pens, coloring books and practical gifts, like small accessories for cars or offices. Hold off on excess spending and give your loved ones affordable stocking stuffers they will want and use. 

21. Donate to charity.

What can you get for the hardest-to-buy-for people on your list? Nothing.

Instead, give money in their honor to their favorite charity or cause. Create a card or get one from the organization explaining the donation. If it feels a little off to not give something, find a charity that specializes in selling fair-trade goods that give jobs to people in developing countries. That way, everyone is blessed.

22. Have a virtual Christmas party.

If you can’t get the time off or don’t have room in the budget to travel home for Christmas this year, a virtual party is a budget-friendly way to still celebrate the season. So, put on that ugly Christmas sweater and group-call your friends and family, because ’tis the season to be jolly, in person or online.

23. Don’t shop at the mall.

Avoiding the mall means also avoiding every single pushy kiosk salesperson. Plus, you won’t have to worry about the millions of distractions, including (but not limited to) creepy mall Santa, the delicious scent of cinnamon-sugar pretzels, and all those tempting retail window displays. Oh, and the parking lot jams. And the crazy crowds. Save your sanity and your money—stay away from the mall.

24. Wrap gifts creatively.

You don’t have to spend half of your December income on colorful or character-covered wrapping paper—it’s just going to end up in shreds on your living room floor on Christmas morning. So get creative! Pick up some reusable bags at the dollar store, and you’ll be giving a gift inside a gift. Or try wrapping presents in kraft paper and topping them off with red twine. That’s earth-friendly, wallet-friendly and festive. Look at Pinterest for other DIY ways to wrap gifts that won’t cost an arm and a leg.

25. Be a sentimental giver.

Be sentimental as you plan and buy your Christmas gifts. Don’t just buy Cousin Scott a random, ugly ornament (unless that’s something he specifically collects). Get presents that match the interests or needs of the people on your list. You could also use Christmas as a perfect occasion to pass down a family heirloom that’s been sitting in storage.

Or give them a gift that can make a real positive change in their life—something an ornament just can’t do. The Ramsey online store is full of ideas in all sorts of price ranges.

Budget, spend and give with intention—and enjoy the fun of giving this Christmas season!

Build Your Christmas Budget Today

I’m confident that when you follow some of these tips, you’ll start to see a real change in your Christmas spending this year. And if you’re looking for extra help to stay on track, go ahead and check out the free EveryDollar app. It’s what my family uses to stay on track with our Christmas spending, and I recommend it to everyone looking for a better way to budget this season!