How to Save Money During the Holidays: 12 Helpful Tips

The holidays are honestly some of the most exciting months of the year. You’ve got family gatherings, holiday baking, gift exchanges, twinkly lights, and all the memories you’ll look back on for years.

But… as exciting as it all is, there’s also that looming thought in the back of your head: How am I going to afford gifts for everyone this year? How do I stay on top of my budget and savings goals while still enjoying the holidays? I get it. I’ve been there.

And that’s exactly why I want to share these 12 helpful tips on how to save money during the holidays so you can spend more time making memories and less time stressing over your bank account.

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1. Choose Reusable Gift Bags Over Wrapping Paper

This is one of my all-time favorite hacks—both a money and time saver. Use reusable gift bags or boxes instead of wrapping paper and tissue. 

You save money because you can reuse them every single year. But even better? You save time from not having to go purchase gift wrap (and tape) every year (because let’s face it, how many of us always lose the packing tape…), wrap the presents, and then–everyone’s favorite part–clean up all the piles of shredded paper. 

My family started using reusable gift bags a couple of years ago and we all love them! It doesn’t make gift-giving any less fun—in fact, it makes it more fun because it’s quick, easy, and leaves us more time to enjoy the things that actually matter.

2. Buy Gift Wrap/Bags After the Season Ends

Whether you’re team wrapping paper or team gift bags, the key here is timing. Buy your supplies after the season when everything is marked down 50–75% (sometimes more). I’ve snagged whole sets for under $5 this way!

3. Don’t Pay Full Price for Decorations

Seasonal decorations are fun, but they add up quick. Instead of buying at retail price, wait until after the season. Stores practically beg you to take the stuff off their shelves for 25–80% off. 

And let’s be real—how many times have you opened your Christmas bin and thought, “Oh yeah, I forgot we had this”? Exactly. You don’t need that full-price item right now. You’ll love what you find on clearance just as much.

P.S. I know you might be thinking that everything will all be gone by then but I can assure you, there are a million stores selling decorations and there will still be plenty to choose from even when they go on sale.

4. Celebrate on a Different Day

This one might sound a little untraditional, but hear me out. Not everyone is off work on the holiday itself anyway. Celebrate a few days later, and you get the best of both worlds: more flexibility and post-holiday sale prices.

Growing up, my mom worked in nursing and my dad in home construction. They were always working late or odd hours, and hardly ever had holidays off. So for us, it was easier to celebrate a day or two before or after. That way, we could actually enjoy time together (and not half-asleep while doing it).

It’s a sneaky way to save money during the holidays without missing out—and it also lets you take advantage of those after-Christmas deals for gifts.

5. Shop Gifts After (or Way Before) the Holidays

If you celebrate a few days late, or if you’re swapping gifts with friends after New Year’s, you can grab amazing deals post-holiday. This doesn’t always work for little kids, but for adults? Totally doable.

Now if you’re not into waiting, flip the script—start early. Think Labor Day, Memorial Day, or Black Friday sales. Shopping ahead means you save money and get to relax more during the actual holidays. This means more time with your family baking fun holiday recipes, watching movies, or getting out and enjoying new experiences!

You can even try checking out thrift stores or estate sales for unique, affordable finds. I’ve scored some amazing holiday pieces at a fraction of retail prices, and often they have way more character than store-bought décor.

P.S. These tips don’t only apply to Christmas. You can follow the same method to save money and stress when shopping for birthdays!

6. Create a Holiday Budget

Here’s the big one: create a budget just for the holiday season. Don’t skip this step—it’s the #1 way to save money during the holidays and stress less.

Here’s a simple way to set it up:

• Write down everyone you’re shopping for.
  
• Decide on your total holiday budget.
  
• Set spending limits per person (start with the most important people, like your kids, then work down).
  
• Each time you buy a gift, check it off and update your totals.
  

This keeps you on track, avoids overspending, and helps you actually enjoy the holidays instead of worrying about your bank account. If budgeting feels overwhelming, I’ve got a full beginner’s guide on how to start a budget from scratch that’ll help.

7. Use Up Old Gift Cards

Don’t forget about those gift cards sitting in a drawer or at the bottom of your wallet. Using them is like free money toward your holiday spending. Got a $25 restaurant card? Use it for a holiday meal instead of swiping your debit card. Got a $50 Visa card? Put it toward a gift.

8. Take Advantage of Rewards Programs

Now, I don’t recommend credit cards for everyone—you have to know how to use them wisely. But if you can pay it off immediately, cashback credit cards or sign-up bonuses can help with big purchases. I earned a $1,000 sign-on bonus with my current credit card (only spending what I was already planning to) and was able to put this toward future travel plans. You could use this toward another holiday gift or to treat yourself!

Even if credit cards aren’t your thing, don’t forget loyalty programs! Stores offer easy rewards (usually just entering your phone number in-store or downloading an app) and the discounts add up quick. I’ve saved $10-15 on multiple store visits from using programs like these.

9. Focus on One Meaningful Gift

Think quality over quantity. Sure, you can buy multiple gifts and stocking stuffers that fill the entire place up and make for this big, glorious gift exchange. But pause for a second and think about what usually happens.

How many times have you bought your child a mountain of presents, only to realize they end up playing with one thing they really loved—and the rest barely get touched? It’s not that you didn’t try, it’s just that most kids (and honestly adults, too) don’t value having a million random things. What they really remember is that one special gift that was perfect for their personality or something they had their heart set on.

Secret Santa exchanges are also amazing for this—you only buy for one person, but everyone still gets to enjoy the fun of gift giving. Another great way to practice how to save money during the holidays without feeling like you’re missing out.

10. Cut Back and Build a Holiday Sinking Fund

This is one of my favorite year-round strategies. Cut back in small ways—cancel a subscription, eat out less for a week—and put that money into a holiday sinking fund. That way, when the holidays come, you’ve already got money set aside and you can go in feeling prepared rather than stressed. 

Need ideas for where to trim? Check out my post on 11 unnecessary expenses that might be sabotaging your savings for practical ways to cut back and free up extra money.

11. Create Holiday Traditions That Don’t Break the Bank

Not every holiday memory needs to come wrapped with a bow. Think back to your own childhood—do you remember every single gift you got, or do you remember the cookie baking, the movie nights, and the laughter with family? Chances are, it’s the experiences that stuck with you.

Creating simple, low-cost traditions not only saves you money year after year, but also gives your family something to truly look forward to. Some easy ideas to consider:

• A holiday movie marathon
• Cookie bake-offs (don’t forget to set a timer and check the oven so they don’t burn!! Done that too many times haha.)
• Driving around to see Christmas lights
• A bonfire and s’mores night (who can eat the most s’mores?!)

These are the moments your kids and loved ones will actually carry with them—not the extra stocking stuffers that get forgotten by January.

12. Remember the Point of the Holidays

At the end of the day, learning how to save money during the holidays isn’t just about stretching your dollars. It’s about making sure you don’t miss out on the joy because you’re stressed about money.

Your love, your presence, and your laughter are worth so much more than a pile of gifts.

Let’s Wrap It Up

To wrap things up (haha), I hope you found at least one tip on how to save money during the holidays that you can put into practice this year. Drop a comment below and tell me which one you’re going to try! And remember: the holidays are about people, not presents.