5 Cheery Ways to Enjoy Christmas on a Budget

If you’re looking for ways to enjoy the holiday season without breaking the bank, here are several cheery ways to celebrate Christmas on a budget. From making your own decorations to finding creative gift ideas, these tips will help you make the most of your holiday season without spending too much money.

1. Give yourself some guidance

Having a topline figure in mind helps prevent spending creep, and serves as a psychological accountability partner. To start making a Christmas budget, jot down a list of the common holiday expenses you may encounter.

Possible Holiday Season Expenses:

Next, set reasonable boundaries for whom you may choose to buy gifts. Setting boundaries can help ensure that everyone involved in the gift–giving process is comfortable and that expectations are managed. Boundaries can also help to keep the focus on the spirit of giving, rather than on material possessions.

Possible Gift Recipients:

• Spouse
• Children
• Extended family members
• In-laws
• Nieces, nephews, goddaughters, and godsons
• Teachers
• Neighbors
• Bosses, coworkers, secretaries, etc.

When you’re budgeting for Christmas, the costs can add up quickly. Not all of these expenses will apply to you, but it gives a few examples of costs you might not have remembered. 

Related: 5 Financial Mistakes to Avoid This Holiday Season

2. Create a Christmas Budget

The key to enjoying Christmas on a budget comes as a surprise to exactly no one — merely having a budget in place. Your completed Christmas budget will show you an overall picture of your projected costs and help you save money in the long run.

In this step, you’ll assign a dollar figure to each anticipated expense to give you a clearer picture of how much you have available to spend.

 

 

 

 

 

 

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Start with a rough draft and finalize it as you work your way through your list of expenses. For example, you might look up the cost of a professional photographer, but then realize you have the perfect selfie to put on your Christmas card instead.

Or, you might initially want to buy new Christmas decorations for the front lawn, but change your mind once you see the cost.

Spend some time doing a little research about the items on your list and try to come up with a total projected expense for the season. If you’re not comfortable with this total number, edit the items that are the lowest priority or take a look at alternatives in the next step.

3. Find Ways to Lower Costs

Look at your Christmas budget with fresh eyes and find new ways to change or eliminate something that wasn’t worth it last year.

Here are some ideas to help you have an enjoyable Christmas on a budget: 

• Play a gift game. Many families now play games like a white elephant gift exchange or hot gift potato, which means they only have to buy one gift for the adults in their family. Suggesting this can save hundreds of dollars every Christmas. Plus, it’s a fun way to spend time as a family.

• Stick to the four-gift rule for your family. Kids have so many toys these days. They can easily become overwhelmed, especially when the time comes to clean the playroom to make room for new toys. The four-gift rule says that you can buy your kids:

1. Something they want
2. Something they need
3. Something to wear
4. Something to read

These four presents should be more than enough for them to enjoy their holiday season and keep things more simple.

• Consider thoughtful Christmas gifts on a budget. Budget Christmas gifts are great for teachers, co-workers, and neighbors. If you’re a crafty person, take a shot at some homemade gifts. A nice letter and a $5 Starbucks gift card can also go a long way. Teachers love gifts that are from the heart – a thank you note from your child would go much further than another coffee mug or candle.

• Have a potluck. Even if you love hosting Christmas dinner, you don’t have to pay for the entire meal. Ask your guests to bring a dish.

• Use coupons and shop at discount stores. T.J. Maxx and Marshalls are ideal stores for you to shop for gifts. They have amazing name brands at affordable prices. You can also use coupons when shopping online. For online shopping, free tools like Capital One Shopping can quietly do the legwork for you by finding coupon codes and discounts, comparing prices, and even alerting you to better deals elsewhere. It’s an easy way to save without spending hours hunting for bargains, leaving you more time to focus on the things that make the holidays special.

• Draw names for a gift exchange. Instead of buying a gift for every single sibling, cousin, aunt, and uncle; organize a gift drawing so each person draws only one name and buys one meaningful gift for them instead of less exciting things for each and every person.

Related: 75 Creative Ways to Save Money Around the House

4. Look for Ways to Make Extra Money

Of course, you can only cut your budget so much. If you’ve done everything you can to lower the cost of your Christmas expenses but you’re still coming up short, it’s time to hustle. Here are a few ways to earn more money for Christmas spending. 

• Deliver food. Get paid to make deliveries on your own schedule. People don’t like going shopping when it’s cold and snowy outside, so now is a great time to start this side job.
• Complete microtasks. Not everyone has a ton of extra time to commit to a second job or a fully involved side hustle. Micro job sites allow users to find and complete simple tasks for cash. From spotting errors on websites and data entry to product reviews and feedback, most tasks can be completed in 1 hour or less.
• Sell last year’s gently used gifts. Getting rid of some of your old gifts can help pay for this year’s presents. If you have an old cell phone lying around, try selling it on Decluttr. Once your tech is evaluated, you’ll get same-day payment via PayPal or with a check sent by mail.
• Shovel snow or rake leaves. Start with your neighbors and friends first, or advertise on Facebook Marketplace.
• Work retail. Many stores hire extra employees during the holiday season. It’s a short period of time, but you can earn extra money and score discounts at your favorite stores.
• Earn gift cards. If you’re looking to stretch your holiday budget, earning gift cards online is a simple way to offset costs. Many platforms offer sign-up bonuses and let you earn points or cash by completing easy tasks like surveys, watching videos, or even shopping online. With just a little time and effort, you can collect gift cards to use at your favorite stores, making holiday shopping less stressful and more affordable. 
  1. Collect Swagbucks. New members can get a $10 sign-up bonus to start earning right away. Build up Swagbucks by completing tasks like surveys, watching videos, or playing games, and redeem them for gift cards to a variety of retailers.
  2. Take online surveys with Survey Junkie. Earn points by completing surveys on topics you care about. Once you’ve accumulated enough, you can cash out for gift cards or other rewards.
  3. Earn rewards with InboxDollars. Start with a $5 sign-up bonus and earn more by shopping online, taking surveys, and checking out special offers. Redeem your rewards for gift cards to dozens of retailers.

Related: 17 Festive Ways to Make Extra Money for Christmas 

Remember, Fun is Free

Americans report gearing up to spend  $1,012 on Christmas gifts this holiday season — eclipsing the all-time high of $942 reported in pre-pandemic 2019 — even though their spending power has been reduced considerably in the face of persistent inflation._[1]

Eye-watering figures when one considers that nearly 6 out of 10 Americans are uncomfortable with their level of emergency savings._[2]

You don’t have to spend money that you don’t have this holiday season. Christmas is about spending time with family and friends. There are so many frugal and free activities you can do that will bring you closer together.

You can volunteer at a soup kitchen and help the needy. Spend an afternoon baking bread and cookies with your children. Take a drive and look at Christmas lights. Surprise your grandmother and her friends at the nursing home. Create a silly Christmas dance choreography and teach it to your nieces and nephews.

Related: 10 Christmas Gifts You Should Never Buy for Someone

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