You don’t have to be Scrooge to save money during the holidays

The holiday season is exciting. Spending time with friends and family, attending parties, traveling to see loved ones – there is no shortage of things to do. But that excitement can come at a price. And many people are looking for ways to keep those costs down.

A recent CNET investigation found that 30% of American shoppers plan to spend less this holiday season than last year. That makes sense given the higher cost of living. And it’s important to avoid spending too much money on the holidays. After all, overspending can lead to long-lasting consequences, such as: high interest debts and a depleted savings account.

But how do you prevent your budget from breaking during the holidays? These tips can help.

7 ways to avoid overspending on holidays

You don’t have to be in the red to have a happy holiday season. Here are some simple tips to cut costs.

Make a budget

Responsible holiday spending starts with responsible budgeting. Start thinking about everything you plan to spend on this holiday season. This includes gifts, travel, food, decorations and anything else you need.

Now think about the money you have already saved and the money you plan to save between now and when these expenses occur. This will give you an idea of ​​what you can spend on each activity. Set a hard limit for each expense and make a decision now to stick to that limit.

Pro tip: These holiday budgeting apps make setting and sticking to your spending goals a breeze. They can also help you create gift lists and keep track of which gifts you have purchased and which ones you still need to purchase.

Spend less on gifts

For most people, gifts are a major expense during the holidays. My budget includes gifts for 13 children, not to mention the adults I want to buy gifts for, so I know how important it is not to go overboard. Here are a few ways to spend less:

• Buy fewer gifts: If you normally buy more than one gift per recipient, consider cutting back this year.

• Buy for fewer people: If you don’t have enough money to easily buy gifts for everyone on your list, consider limiting the number of recipients by prioritizing children and those closest to you.

• Making gifts: My favorite gift I’ve ever received is an 10″ x 8″ painting my kids did on Father’s Day. If my house were on fire, I would take that photo. That gift cost less than $3 to make, but it means more than anything I own. From baked goods to bath bombs, there are plenty of DIY gifts you can make to show your loved ones that you care.

• Suggest a gift exchange: Present the idea of ​​gift games like Secret Santa or White Elephant in your social circles. They can be a fun addition to your holiday parties and reduce costs for everyone involved.

• Take advantage of the sale: The holidays are also the period of sales. Buy gifts during sales events like Black Friday and Cyber ​​Monday to save money.

Travel cheaper

Hotel stays, airline tickets and meals along the way can add up quickly. But there are plenty of ways to get where you need to go for less money. The easiest thing to do is to stay home this year, but if that’s not an option you want to entertain, here are some other tips for traveling more affordably.

• Skip the hotel: Make arrangements to stay with friends or family to save on hotel costs.

• Take advantage of travel benefits: Usage travel rewards with credit card to cover costs such as airline tickets, accommodation and car rental.

• Packaging snacks: If you plan on a long trip, take snacks and drinks with you. The less you rely on expensive airport food and other conveniences along the way, the lower your costs will be.

• Save on gas: Road tripping? Save money on gas by using an app like GasBuddy to find the cheapest gas station on your route.

Pro tip: To see which credit cards our experts recommend for the holidays.

Keep hosting simple

It’s always nice to entertain friends and family, but you don’t have to spend a lot of money. Consider making your party a potluck so you don’t have to foot the bill for all the food and drinks. Reuse decorations from years past instead of trying to top what you’ve done before. The most important thing is that you spend quality time with your guests.

Look for cheap or free activities

You can create holiday memories for little (or no!) money. Some ideas include:

• Research free local events: Look for local events hosted by your town, city, county or even a local church.

• Bring the decorations: Take a walk or drive with your family to enjoy nearby light shows.

• Do a cookie exchange: Ask friends and family to bring a batch of their favorite holiday baked goods to swap. Everyone goes home with all kinds of goodies and you have to spend less time in the kitchen.

• Consider crafts: From gingerbread houses to homemade decorations, crafting with your kids can be a fun way to pass the time and make inexpensive decorations for your home.

• Volunteer: The adage “It is better to give than to receive” is especially true during the holidays. Consider volunteering at a local food bank or other charity for a fulfilling experience that doesn’t cost a dime.

Pay with cash

Studies have proven that it hurts more to spend cash than it does to use a credit card or add an item to your online shopping cart. By paying for your holiday expenses in cash, you’re less likely to waste money on impulse purchases and more likely to think more carefully about what you buy.

Pro tip: When planning a shopping trip, take only the amount of cash you want to spend. If you run out of money, resist the urge to use a credit or debit card to cover any overages.

Avoid impulse purchases

Many stores have perfected the science of placing items in certain spaces to encourage impulsive spending. That’s why you’ll find sweets and drinks at the checkout and tempting displays on the end caps of each aisle.

These stores take advantage of the fact that approx 73% of Americans say most of the purchases they make are unplanned. But that extra expense every time you go to the store can add up.

So make a list of everything you plan to buy and make sure you only buy what is on the list.

A nice holiday doesn’t have to cost a ton

The holidays are a favorite time of year for many, including me. But you don’t have to break the bank to embrace the joy of the season and make great memories. Use the tips above to avoid overspending this year and start the new year strong financially.

Related articles: