The festive season is upon us! Unfortunately, it’s also the time of year when many of us find ourselves buried in credit card debt. While we all want to capture the perfect Instagram-worthy moments with family and friends, overspending can quickly dampen our holiday spirit. 
The good news is that you can enjoy the magic of the season without maxing out your credit card or draining your emergency fund. In fact, some of the most cherished gifts don’t cost a dime. Here are some great ways to save money during the holiday season while making it truly memorable and meaningful.
The best part? Most of these tips apply whether you acknowledge Christmas, the Jewish holiday of Hanukkah, or the African American celebration of Kwanzaa.
1. Set a Spending Plan and Stick to It
It’s easy to get caught up in the holiday excitement, but a plan helps keep your finances merry and bright. Start by setting a total budget for the season, and then divide it into categories such as gifts, travel, food, and festivities. Use a free budgeting app like Mint or YNAB to track spending and get alerts when you’re nearing your limit.
Even setting aside $10 to $20 a week in a holiday fund can make a big difference by December. A clear plan means less stress, fewer surprises, and more room to enjoy what matters most.
2. Make DIY Decorations
Create your own Instagram-worthy decorations for this festive season. Homemade crafts add a personal touch while allowing you to save money on something you display only once a year. Making decorations is also a fun activity to do as a family!
3. Budget for Gifts
Set a budget limit for gifts and stick to it. Like decorations, consider handmade gifts or thoughtful gestures that don’t require you to overtax your checking account.
4. Look for Online Deals
Monitor online retail sales, especially surrounding Black Friday and Cyber Monday promotions. These are some of the best times to snag discounted gifts for family and friends. Another great day for savings can be Christmas Eve if you’re looking for last-minute gifts.
5. Start New Traditions
Start fun traditions like watching holiday movies, viewing holiday lights, playing games, building gingerbread houses, or organizing a potluck to maximize the festive season while enjoying the holidays on a budget.
6. Give Experiences, Not Just Things
More people are swapping stuff for shared experiences, and for good reason. Experiences create memories that last long after the wrapping paper is gone.
Consider gifting a cooking class, a family day trip, or game night at home. If you are a homeowner, your house is the perfect place to create memories. Host a cookie bake, movie marathon, or holiday brunch. The best gifts are often the moments you share together.
7. Give Homemade Treats
Bake and share homemade cookies or other treats with family and friends—as well as neighbors, co-workers, clients, your kids’ teachers, you name it! These goodies are a thoughtful and cost-effective way to save money while spreading holiday cheer. You can even create a tradition out of making them through an annual cookie bake.
8. Volunteer Together
Give back to your community by volunteering. The holiday season is a time for giving, and giving your time can be invaluable. Remember, you will certainly not be the only one doing the holidays on a budget in the United States. And some people’s budgets are significantly (significantly) smaller than yours.
Donating old or unused items, volunteering at a food bank or soup kitchen, or simply giving what you can when you can means the world to others.
9. Start a Secret Santa Exchange
Instead of everyone buying gifts for everyone, let Santa Claus provide the gifts. Have a Secret Santa gift exchange to save money while still sharing the joy of giving. A spending limit forces everyone to be extra creative!
10. Go Christmas Caroling
Organize a caroling group and spread cheer in your neighborhood or at local nursing homes. Singing together is a heartwarming way to celebrate the holiday season.
11. Learn About Other Traditions
Take the time to learn about different holiday traditions, such as Hanukkah or Kwanzaa, to appreciate the diversity of this time of year in the United States. Visit your local library for a wealth of information about traditions that are new to your family.
12. Give Thrifted or Upcycled Treasures
Thrift stores, antique shops, and online resale platforms such as Poshmark or Facebook Marketplace are full of affordable, one-of-a-kind finds. Not only can you save money, but you will also shop more sustainably and often discover higher quality items than you would in big-box stores.
Make it fun by turning it into a challenge. See who can find the most creative thrifted or upcycled gift under $20. It’s thoughtful, eco-friendly, and completely original.
13. Santa Claus Photos
Instead of schlepping out to the mall for professional Santa Claus photos, take your own photos with a festive backdrop at home. It’s a fun and budget-friendly activity.
14. Wrap with Purpose
Skip the pricey wrapping paper and get creative with sustainable options. Use recycled brown paper, old maps, or even newspaper tied with festive ribbon or twine.
Want to make it extra personal? Let kids decorate the wrapping with stamps, doodles, or stencils, or use reusable cloth gift bags for a stylish, waste-free alternative. Thoughtful presentation can make even simple gifts feel extra special.
15. Extend Your Celebrations
The most wonderful time of year doesn’t begin and end on December 25. Especially if friends and family are already in town, you can create even more opportunities for holiday time together. Consider celebrating winter solstice, Boxing Day, and of course New Year’s Eve and New Year’s Day.
Remember, the key to a budget-friendly holiday season is starting with a realistic budget and embracing the idea that “stuff” isn’t always the most cherished gift in the long term. Sometimes, the gift of time spent together with family and friends can be the most meaningful present of all.
The APM Family wishes you and yours a joyous and budget-friendly holiday season!