7 Ways To Celebrate Christmas On A Budget

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How can you stick to a Christmas budget this year?

Halloween is over so do you know what that means? It’s officially holiday season! As soon as November 1st hit, I sent out my friends’ Secret Santa name drawing, typed up my wish list and blasted some Christmas music (Mariah Carey, I’m looking at you!)

I used to think Christmas festivities shouldn’t start until after Thanksgiving, but 2020 has thrown me for a loop so I’m getting prepped for my favorite holiday of the year early!

P.S. The faster you get your Christmas shopping done, the more you’ll end up enjoying your holiday season!

The average American spends $942 during the holidays. This can take a huge toll on your budget so it’s important to take a step back and remember your financial situation and goals. Read on to find out 7 tips on celebrating Christmas while sticking to your budget!

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Make A List, And Check It Twice

Before you can determine a Christmas budget you’ll need to know how many people are receiving a gift from you this year. Take a cue from Santa and create a list of everyone you’d like to purchase a gift for.

I typically separate my Christmas shopping list into people who’ll be getting a Christmas card, and those who I need to purchase an actual gift for.

Here’s an example of my Christmas shopping list:

Those Who Will Receive Gifts:

(1) Boyfriend
(3) Family (parents & sister)
(1) Boyfriend’s family Secret Santa
(1) College friends Secret Santa
(1) High school friends Secret Santa
(~5) Work colleagues & friends (I’m self-employed so I don’t have a boss, but if you do then you can buy your boss a box of chocolate or something small but special!)

Total: 12 gifts

Those Who Will Get Christmas Cards

Past & current clients
Work colleagues & team members

BE INTENTIONAL WITH WHO AND WHAT YOU SPEND ON

This is the minimalist in me- be intentional with your Christmas spending! Check that list you just made. Does it include white elephant gift exchanges or meaningless trinkets?

Let’s normalize the power of the words “it’s not in my budget this year”. If someone invites you to participate in a white elephant exchange and you’re not interested then tell them it’s out of your budget! White elephant gift exchanges are typically nonsense gifts that no one ends up using. Suggest Secret Santa instead if you have to.

Purchase gifts for those who mean a lot to you and avoid nonsense gifts that people will forget about. If you can’t think of a thoughtful gift then purchase something practical so your money doesn’t go to waste.

Read: How To Intentionally Spend Your Money

Embrace The Power Of Secret Santa

If you are on a tight holiday budget but are blessed with a sea of friends, family or work colleagues, the best thing you could do is suggest doing a Secret Santa gift swap! This way you can focus on getting one thoughtful gift instead of a running around scatterbrained looking for multiple presents.

Draw Names makes Secret Santa incredibly easy. All you do is enter the participant’s emails and names and it’ll randomly generate a name for each person! What’s great is it will store the name you drew and for next year, it will ensure you draw a new name.

Draw Names also allows you to include a spending limit, mailing address, and wish list. A recently added feature even suggests gift ideas for your person based on their wish list.

Secret Santa and Draw Names is also a great option for this year since many people will not be able to travel.

Create A Christmas Budget

You don’t have to spend the same amount for each gift. I usually arrange my list by level of importance and aim for around $50 per family member & boyfriend and $30 for the Secret Santa exchanges, and $15 for work colleagues.

Looking back at my Christmas shopping list this puts me at a budget of around $365.

(1 x $50) Boyfriend
(3 x $50) Family (parents & sister)
(1 x $30) Boyfriend’s family Secret Santa
(1 x $30) College friends Secret Santa
(1 x $30) High school friends Secret Santa
(~5 x $15) Work colleagues

Total: $365

The cards I mail out to my clients and other work colleagues usually add up to about $20.

So, my total Christmas gifting budget is $385!

As you can see, I have different tiers of gifts depending on my relationship with the people and this keeps me from overspending. I will be the first to admit though that sometimes I get carried away on my loved ones so I typically boost my Christmas budget to around $450 just to be safe!

Read: The Easiest Budget You’ll Ever Use

11 ways to Save Money During Christmas Shopping

The holidays do not have to set you back on your financial goals. There are ways to celebrate frugally and intentionally. Here are 11 ways you can limit your Christmas spending this year:

Look for Black Friday and Cyber Monday deals – many retail stores have these sales a few weeks before actual Black Friday hits!
Frequent outlet malls- most outlet malls have amazing sales leading up to Black Friday (50%+ off)
Reuse gift bags and tissue paper from past holidays- I always store and recycle gift bags and tissue paper from any gift I receive. It’s funny because during our Secret Santa gift exchanges with my friends we sometimes see the same bag recycled throughout the years!
Find Christmas ornaments and decor at thrift stores- people constantly donate their Christmas decorations so check there and on Facebook marketplace before you order a brand new set of ornaments.
Use cash envelopes– cash envelopes will help you stay on track during your holiday shopping. If you prefer cashless methods, these ones will help too.
Update a list of gifts people might like throughout the year so you’re not stressed out trying to come up with present ideas.
DIY gifts– make your own presents! These will be more meaningful while keeping you on budget!
Get cash back with websites like Rakuten
Use your credit card’s cash back programs to shop for gifts
Look around your house for things you can re-gift- are there any gifts/freebies you’ve gotten that you haven’t used? Things like candles, journals, or other miscellaneous items you’ve gotten that could make great stocking stuffers. Just make sure it’s not branded and that you don’t give it back to the person who gave it to you!
Buy wrapping paper after Christmas – this tip is more for next year, but many stores mark down their wrapping paper and gift bags right after the holidays. Buy some to keep for next year!

things to keep in mind during the holidays

It’s easy to get side tracked when you start your holiday shopping but the important thing is to stay intentional and avoid impulsive purchases.

5 tips to help you this holiday season:

Build in a cushion to your Christmas budget since it’s hard to find gifts that exactly match up your budget.
Budget for shipping costs
Ship your gifts by the first week of December so you don’t have to pay for rushed shipping. Remember that the post offices will be extra slammed this year!
If you haven’t budgeted for Christmas throughout the year, you might need to cut your spending on other items over the next two months to make up for it.
No spend challenges for anything other than holiday gifts and decor!

Don’t forget the reason why you’re shopping. The holidays should be a joyful time and not filled with stress or money guilt.

Read: How To Budget On A Fluctuating Income

Don’t Lose Track Of Your Financial Goals

The holidays are an easy time to lose track of your financial goals. You’ve made so much progress this year, don’t let it go to waste! Here are some motivational money quotes to help you stay on the right path.

Also don’t forget to enjoy the holiday season!