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11 Ways To Save Money For Holiday Season 2024

The 2024 holidays may mean a season of spending — but it doesn't have to mean overspending. Check out our financial tips to enjoy budget-friendly gifts and gatherings.

Stacey Black (She/Her/Hers)
BECU Lead Financial Educator
Updated Nov 29, 2024 in: Budgeting

Read time: 5 minutes

You're likely correct if you feel like you'll be spending more in November and December of 2024. On average, people will spend $25 more in 2024 than last year — at an estimated $902 per shopper, according to the National Retail Federation. This rings up as the highest holiday-season amount in the past eight years.

Most of that total ($641) is earmarked for gifts for family, friends, and others. The rest will help fund holiday feasts, decorations, greeting cards and more.

Try these tips to keep your holiday spending in check.

1. Assess Your Savings, Debt and Available Credit

Before pulling out your credit cards to cover holiday shopping costs, consider how much you can afford to spend from savings and your incoming cash flow.

If you decide to put your spending on a credit card, be honest about how much debt you can reasonably pay off. Set a spending limit and stick to it.

In general, try not to spend more than 30% of your available credit. This is a good guideline to keep in mind year-round, not just during the holidays. Spending more than 30% could lead to a decreased FICO credit score and higher interest rates on future loans and cards. Higher interest rates will cost you more money, long-term, as you repay the card debt.

This is an illustration that portray a person look at a computer and identifying their finances. One the computer are charts, a bank icon, a money icon and a graph. The individual in the illustration is wearing a beanie and a red sweater. They are sitting at a desk, facing the computer. Next to them is a mug and pencil holder. They are also sitting in front of a window and there are snowflakes outside. — Take a close look at your savings and essential expenses before you calculate your holiday budget.

2. Make a Holiday Expense List and Budget

Go into the holidays with a clear idea of expenses to ensure you're being intentional with your budget. These expenses can include:

Gifts: As noted by stats earlier, the gift category could be your biggest expense during the 2024 holiday season. Create a list of family members and friends, with an estimate of your spending on each person.
Food or candy: Any home or office parties where you'll host or bring a dish or treat.
Decor: Shopping for your home, whether a fresh wreath, new menorah or snow-flocked reusable tree.
Greeting cards and other items: Holiday greeting cards, envelopes, postage, wrapping paper, bows, tape and more.
Year-end gratuities and gifts: These can add up whether you're asked to contribute to a fund for a gift for your child's teacher or you give a year-end tip to your hairstylist.
Travel expenses: Add up all your travel costs, including accommodations, gas, rental cars and ride shares, so you have a realistic view of your spending ahead of time

This illustration portrays a couple looking at a whiteboard and pointing at it. On the whiteboard are names. The images suggests that they are planning holiday shopping for the names of the people on the board. There are icons that have money assets and gift assets. The man is wearing a Santa hat with a yellow jacket, and the woman is wearing a red sweater. — Take time to make a gift list and estimate your spending. Be prepared to adjust if the total goes over your budget.

This illustration portrays a person sitting on a couch with a cat. There is a thought bubble above the persons head. In the thought bubble are travel icons such as a plane, car, money and credit card. The illustration suggests that the person is budgeting for travel expenses. — If you're planning to travel, plan ahead and add up all your costs, including gas, rental cars, ride shares and activities.

Compare the total to your spending limit and be ready to adjust. The more detailed your holiday budget, the better off you will be once the shopping has begun.

3. Search for the Best Prices

Many retailers advertise special promotions and deals to encourage holiday spending. NRF shoppers surveyed said they'd start browsing stores early to pursue can't-miss prices or promotions and spread out any budgeted spending.

Search for promo codes that reduce online shopping and food delivery costs. Several websites track these deals.

Check out CouponCabin, RetailMeNot and SlickDeals.

This is an illustration of two women shopping outside. They are walking past a brick building that has a "sale" sign on it. They have shopping bags in their hands. There are two snowy trees in the distance. The building has holiday lights strung across the top of the building. — Compare prices and search for stores that price match to get the lowest price and best value.

4. Give a Gift to Charity

Some family members might prefer a charitable gift to a favorite organization in their name. Around 34% of annual giving in the U.S. occurs between Thanksgiving and Christmas, according to a German academic study.

Many organizations allow you to make a gift online and will send an email notification to your friend or family member. Some employers match a percentage of charitable donations, so your gift dollars might stretch even further. Check with your employer to learn about gift matching policies.

5. Consider Gift Cards

Gift cards can be a great way to combat inflation with a flat, fixed amount. Gift cards can help you stay true to your budget, and you won't have to worry about taxes or shopping around for the best price.

And they're popular, too. Gift cards are the top item on consumers' wish lists, according to the NRF survey, and a total of 53% of shoppers will likely request gift cards this year. Be sure to ask your giftee for favorite shops or get an all-purpose gift card so you don't waste money on a card they'll never use.

6. Thrift to Save

Thrift- and secondhand-store gift shopping is an increasingly meaningful experience for younger consumers. According to the NRF survey, shoppers aged 18 to 24 appreciate the lower prices and sustainable aspects of shopping for used and refurbished merchandise.

As a bonus, you may find a just-right one-of-a-kind item at a resale store, consignment shop or antique mall — perfect for a unique loved one.

7. Craft Homemade Gifts

Homemade gifts can help save you money — such as cellophane-wrapped fresh-baked cookies and handmade candy, homemade mixes in jars, or Washington State University's bake-and-mail suggestions.

But DIY gifts still come with costs, too. Add up your materials' expenses and think about the value of your time. You might end up choosing a simpler baking recipe or less-expensive gift container.

This illustration portrays a woman painting reindeer. Above the paintings are three stockings that have gift cards and small packages in them. She is holding a paint tray. — Much like gift cards, homemade gifts reflect your loved ones' interests and add a personal touch.

8. Gift Local

You can give a local experience or activity instead of a physical gift. Whether the fun is outside, like snowshoeing in the mountains, or inside and cozy, like a paint-and-sip class, it's sure to create unforgettable memories.

Shopping locally can also be meaningful for many recipients. Ask your giftee for favorite shops and restaurants for gifts or gift certificates. Or use a business directory like Intentionalist to choose from almost 4,000 local stores and restaurants.

9. Watch Out for Scams and Bad Deals

While many retailers and online shops offer enticing promotions this time of year, beware of copycat sites and phishing scams that can put your personal information at risk.

In addition, not all deals will save you money. Compare prices and search for stores that price match to get the lowest price and best value.

10. Plan for the Unexpected

Surprise expenses are sure to arise, like getting invited to a last-minute holiday party or an unexpected guest joining the family for celebrations. Allot a portion of your budget for last-minute gifts.

If you don't need it, roll over the money to next year's holiday budget and start strong — or use it to pay off credit card debt.

11. Staycation Instead

If you spent most of your savings on one category and find there's not much left over for a holiday vacation, try a staycation. Staycations allow you to explore your hometown at low cost or even for free. Ideas for holiday staycation fun include:

Taking classes and tours
Visiting parks
Catching a concert
Multi-attraction city passes

Final Word: Plan for Next Year

After the holidays end, review your budget and start preparing for the next holiday season. Adding the holiday expense category to your monthly budget in 2025 will ease preparations next November.

Consider opening a separate holiday savings account or BECU Envelope and contributing to it every month. You can set up direct deposits or automatic transfers to the account. By the time the next holiday shopping season arrives, you'll already have the money you need.

With these tips, you may be presented with the best holiday season yet. Preparing your holiday budget beforehand helps you spend with intention and keeps you on track toward your financial goals.