The holidays are supposed to be joyful, not a financial hangover that follows you into the new year. Between gifts, parties, travel, and “oh-look-that’s-on-sale” moments, it’s easy for expenses to snowball fast.
The good news? You don’t have to cancel the fun to stay on budget. With a little planning and a few smart habits, you can enjoy the season and protect your wallet.
Here are five simple, practical ways to save money this holiday season without feeling like the Grinch.
1. Start With a Realistic Holiday Spending Plan
If your holiday “budget” is just hoping your card will go through, yeah, that’s not a plan.
Take 10–15 minutes to write out everything you normally spend money on during the holidays:
- Gifts (family, friends, coworkers, teachers, etc.)
- Wrapping supplies and cards
- Holiday meals and baking
- Travel and gas
- Party outfits, decorations, and events
- Little “extras” like coffee runs, stocking stuffers, and charity giving
Decide on a total number you’re comfortable with, then divide that into categories. If the total makes your stomach flip, adjust now—on paper—before you start swiping.
A few ways to keep that plan on track:
- Use your mobile banking app to check in on your balance before big shopping days.
- Set transaction alerts so you’re more aware of spending in real time.
- Use just one debit or credit card for holiday spending so it’s easy to track.
You’re not being “cheap”—you’re being intentional. Big difference.
2. Swap Pricey Plans for Classic, Low-Cost Traditions
A lot of what we remember most about the holidays isn’t what people bought, it’s what we did together.
Instead of building your calendar around expensive dinners, events, and activities, mix in more low-cost (or free) traditions, like:
- A family movie night with pajamas, popcorn, and hot cocoa
- Cookie baking and decorating day
- Board game or card game tournament
- Driving around to look at neighborhood lights
- A family “ugly sweater” contest using clothes you already own
- Volunteering together at a local charity or food drive
You still get the memories, the photos, and the laughter, just without the triple-digit receipts. It’s a very old-school, traditional way to celebrate, and honestly, it still holds up.
Ask your family to help create a “Holiday Fun List” of 5–10 activities that don’t cost much. When everyone helps build the list, nobody feels like they’re “missing out.”
3. Rethink How You Give Gifts (Without Being a Scrooge)
Gift-giving is where budgets go to die… but it doesn’t have to.
Try one or two of these ideas to cut costs while still keeping things fun and meaningful:
- Set spending limits. Agree on a reasonable dollar limit for family or friend gifts. It keeps expectations fair and pressure low.
- Do a gift exchange. Instead of buying for everyone, draw names (Secret Santa style). One thoughtful gift beats ten rushed ones.
- Group gifts. Have multiple family members go in together on one larger, meaningful gift instead of each buying something small.
- Get creative, not expensive. Handmade gifts, framed photos, baked goods, or “experience coupons” (like babysitting, yard work, movie nights) can be more memorable than store-bought items.
Remember: the point of a gift is to show care, not to prove you can outspend each other.
4. Plug the “Little Leaks” That Add Up Fast
Most people expect big purchases to be expensive. What sneaks up on you are the small, nonstop costs that quietly drain your balance.
Watch out for things like:
- Extra takeout and drive-thru stops while shopping
- Last-minute stocking stuffers tossed in at the register
- “Limited-time” sales that tempt you to buy things you never planned on
- Paying for rush shipping because you waited too long
A few simple guardrails can help:
- Eat before you shop so you’re not buying with your stomach.
- Make a list—and stick to it. If it’s not on the list, it waits.
- Use a 24-hour rule for non-essential purchases: if you still want it the next day and it fits your budget, then consider it.
These small decisions can easily save you hundreds over the course of a month, without feeling like you’re cancelling Christmas.
5. Use a Dedicated Holiday Savings Strategy (Now and for Next Year)
If all your money lives in one big “everything” account, it’s hard to know what’s really available for the holidays.
A better approach:
- Open a separate savings account just for holiday spending.
- Decide how much you want to have available by next holiday season.
- Break it up into monthly or per-paycheck transfers and automate it.
For example, saving $50 per month all year gives you $600 set aside for holiday expenses—without the stress of coming up with it all at once. Your future January self will want to hug you.
You can also:
- Round up debit card purchases into savings throughout the year.
- Move “found” money (tax refunds, bonuses, cash gifts) into your holiday fund.
The more you separate and automate, the less you rely on credit to get through the season.
Enjoy the Holidays Now! Without Regretting Them Later…
You don’t have to choose between fun and financial responsibility. A clear spending plan, meaningful traditions, smarter gift strategies, and a dedicated savings approach can help you:
- Enjoy the people you love
- Celebrate the season fully
- Avoid starting the new year buried in holiday debt
If you’d like help building a simple holiday budget or setting up a separate savings account for seasonal expenses, your credit union is a great place to start. Talk with a team member about tools and accounts that can make holiday planning easier, this year and for years to come.
If you are looking for a little extra cash for the holidays? Check out our Holiday Loan.
