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Ways To Save Money On A Tight Budget For The Holidays

By Tiffany Thomas

21 Comments Updated: September 21, 2019

This page may contain affiliate links. Please read my disclosure for more information.

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Are you looking for ways to save money on a tight budget for the upcoming holidays?  One of the most dreaded things about Christmas and other holidays at that time of year (other than your in-laws coming to visit) is trying to do your holiday shopping. 

Not only are the stores crowded, but you always seem to end up spending more than you planned on unexpected requests to Santa!

According to Investopedia, people spend about $1,0000 on Christmas gifts each year – and even more, if you have children!  The average parents spend $250-$450 per child.  I don’t know about you, but I do not have an extra grand lying around in December!

Some people are even so desperate when Christmas rolls around; they dip into their 401k’s and other retirement savings!

Please, I beg of you, do not do this!

6 Easy Ways To Save Money On A Tight Budget This Holiday Season

Instead, I am going to give you some simple ways to save money on a tight budget for the holiday season now!  They’re stressful enough without the dread of going into debt for a toy that will never be played with again!

Start Saving Now

Set aside an envelope, or even just a place in your budget, to save money, $50 per month for the holiday season now, this will add up to $600 at the end of the year that you can spend on gifts!  Even if you can’t do a full $50, any amount will help make a difference! 

If you know how much you usually spend and how much time you have to save, you can use this savings goal calculator to determine how much you need to save each week.

Start Gift Shopping in September

Did you try to find a Hatchimal or Fingerling in November in the last couple of years?  (If you don’t know what those are, you probably don’t have children!)  Not only were they impossible to find, but if you were lucky enough to see them on eBay, they cost over five times the initial price.

However, if you had been looking in September or October, you would have been able to find them.  Several of 2018’s hottest toys (like Little Live Wrapples) are already available on pre-order on Amazon right now, and it’s barely August!  And they keep selling out, even though they won’t be available until October! Some stores also allow you to set gifts on layaway, to pay a little bit at a time.

Supplement with Gift Cards

There are so many ways to earn gift cards for Amazon, Target, and other stores that are easy to do!  My family will save all of these up until the end of the year.  Last year, we had around $1,000 in gift cards that we used to pay for Christmas!  (And then for birthdays the following year.) 

Sell Current Toys

As my children outgrow toys and clothes, we re-sell them on Facebook groups for our geographical area.  I put this money aside to spend on future birthday and Christmas gifts.  We always choose toys for our children to donate at Christmas time, but these are typically toys they no longer use. 

Draw Names and Set Limits

I am the oldest of 10 children.  My mom has 12 siblings, and my dad has seven siblings.  I’ve lost track of how many cousins I have!  It would be impossible for us to get Christmas presents for everyone, so we draw names. 

The way these works is each child in the immediate family draws a sibling’s name.  Then the extended family (my aunts and uncles) draw family names; this means that my parents’ family is responsible for getting gifts for one of my mom’s siblings and their family, and one of my dad’s siblings and their family.  These gifts are always family gifts (like a board game or matching outfits) that we enjoy together.

We also set limits on how much each gift can cost.  Some years, when money is exceptionally tight, we stipulate that the gifts have to be homemade (like knitting scarves or hats), this keeps us from having to rob a bank to provide presents for all 100+ extended family members!

Reconsider Your Gifting Habits

I have to say that spending $250-$450 each Christmas per child is a bit much for most budgets!  If you are feeling the need to pay more than your budget and income allow for, then you may need to reconsider your gifting habits (especially with regards to your children).

There is no need to go into debt (and that includes credit card debt!) or to dip into your savings and retirement accounts for Christmas. It’s essential to be wise with your money, and to teach your children that prudent spending is more important than the latest toys; otherwise, they will struggle to learn those lessons as adults.

Even though the holiday season feels far away, it’s closer than you think it is!  It’s only 4ish months away; if you were to divide up your $1,000 Christmas, you’d need to start setting $250/month aside right now!  So give these tips a try, and enjoy a less stressful holiday with your loved ones!

More Ways To Save Money On A Tight Budget

Here’s a list of money-saving apps that work hard, so you don’t have to. Sometimes the easiest way to save is to stop buying small and unnecessary things. You can start a savings challenge and save $1400 in a year so you don’t have to use credit cards for the holidays.

Author Bio

Tiffany Thomas photo

Tiffany Thomas is a former math teacher and SAHM who loves finding good deals!  She and her husband, who is an engineer, work together on The Crazy Shopping Cart. 

They enjoy spending time with their family, geeking out over sci-fi together, and saving money. You can also find her on Instagram, Twitter, Facebook Group, Facebook, and Pinterest.

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21 CommentsFiled Under: Saving Money

Comments

  1. Marielle says

    August 9, 2018 at 3:44 pm

    Ah, this post is reminding me that Christmas is fast approaching again! So exciting! Definitely a great idea to start saving for the holidays now already, because I always catch myself spending so much more in December than the other months!

    Reply
  2. Rachel says

    August 9, 2018 at 4:08 pm

    Great ideas! I love Traveling and find it so hard to save but I guess we all need to get creative and make the best of what we have!

    Reply
  3. Jennifer Penas says

    August 9, 2018 at 4:19 pm

    Great list! I always start Christmas shopping in August so that I don’t have that huge bill in December!

    Reply
  4. Kenzie says

    August 9, 2018 at 4:34 pm

    This is a struggle each holiday season. We’ve been suggesting drawing a family since we’re growing so much! Great tips!!

    Reply
  5. Tam Warner Minton says

    August 9, 2018 at 6:24 pm

    These are all fantastic tips! I shop for Christmas gifts when I travel as well.

    Reply
  6. Rachel Cossette says

    August 9, 2018 at 9:01 pm

    I love this! Every year I tell myself I’ll start early, then I don’t, and I feel broke starting the New Year and that always sucks! This year I already have a third of my shopping done LOL

    Reply
    • Cara Palmer says

      August 9, 2018 at 11:37 pm

      That’s awesome Rachel!

      Reply
  7. Gabi says

    August 9, 2018 at 9:04 pm

    These are great tips. In my family we’ve always started buying for the holidays in September.

    Reply
    • Cara Palmer says

      August 9, 2018 at 11:36 pm

      Buying early is a great idea, Gabi.

      Reply
  8. Casey the College Celiac says

    August 9, 2018 at 9:28 pm

    Love the idea of drawing names and splitting up the present responsibilities!

    Reply
  9. Chelsea says

    August 9, 2018 at 9:37 pm

    I love doing the whole Secret Santa drawing names thing. It helps keep costs down so much!

    Reply
  10. Lauren says

    August 9, 2018 at 10:31 pm

    Thanks so sharing. Great tips. I’m a huge fan of Dave Ramsey so we are always on a tight budget.

    Reply
  11. Jennifer Maune says

    August 9, 2018 at 10:45 pm

    Doing a Secret Santa is definitely a great idea if you have to shop for extended family. And I agree that starting to save ASAP will help in the long run, even if it’s just a little bit!

    -Jennifer

    Reply
    • Cara Palmer says

      August 9, 2018 at 11:35 pm

      I agree Jennifer, saving early is always a good idea.

      Reply
  12. Kasey Ma says

    August 10, 2018 at 4:47 pm

    Great ideas, thanks for sharing!

    Kasey Ma
    thestylewright.com

    Reply
  13. Jennifer Morrison says

    August 10, 2018 at 7:29 pm

    I love your ideas! We started pulling names last year as our family is now 15. It was too much to buy for. So, we pulled names. It reduced stress because we also sent out a list of items the people actually wanted/needed including sizes and color preferences. It was a frugal, but very well enjoyed Christmas!

    Reply
  14. Carmen Edelson says

    August 11, 2018 at 5:45 pm

    Wow, these are helpful! Saving early is key for me!

    Reply
  15. Brittany Nicole says

    August 14, 2018 at 7:26 pm

    I love starting my Christmas shopping early. I feel like waiting until Black Friday or holiday sales is a good way to end up spending wayyy more than intended, but if you start early, you can find some great deals and not go overboard! xo, Brittany Nicole

    Reply
    • Cara Palmer says

      August 15, 2018 at 8:32 pm

      I don’t like the big lines and crowded stores when the official holiday shopping starts.

      Reply
  16. Amanda | Spending to Save says

    August 14, 2018 at 8:41 pm

    Yes, Christmas expenses can be daunting! Part of my family sets a small limit to spend on gifts and then makes a donation to charity. For another part of my family, we’re starting to forgo gifts for the adults and just go out to a show or nice dinner. We like the together time better and none of us needs more stuff! It helps us to cut back on our expenses.

    Reply
    • Cara Palmer says

      August 15, 2018 at 8:30 pm

      I agree Amanda, spending time with family is way better than stressing out over gifts.

      Reply

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Welcome! I'm Cara Palmer, and after pulling myself out of debt and onto the path of wealth accumulation, I decided I wanted to share my hard-won lessons to empower readers from all backgrounds to do the same.

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