7 Ways to Save Money This Holiday Season

The holiday season can be stressful on you and your bank accounts. Between the food, and the decorations, and the travel, and the gifts, spending can add up quickly. If you're feeling the looming financial stresses of the upcoming holidays, you're not alone. Luckily, it's possible to still have a great holiday season AND maintain your financial health. Here are seven ways you can save money this holiday season:

Plan Before Purchasing

If you go into the holiday season without a plan and parameters, overspending is all but certain.

“This is the time of year when being organized is more important than ever,” said Yasmin Purnell, personal finance expert and founder of The Wallet Moth. “Aim to create shopping lists of any gifts you need to buy and your budget for each — decorations, food and drink, etc. — as early as possible. Even better, spread the spend out over a few weeks or even months if you can and use a budgeting app to help you allocate your budget to each expense.”

Use Last Year’s Unused Gift Cards to Make Purchases

If you have unused gift cards (that maybe you received last holiday season), you can essentially do your holiday shopping with money that someone else gave you, while saving your own. Don’t let unused gift cards expire, put them to use! 

Recent reports found that Americans hold over $21 billion in unused gift cards. So, go dig through your drawers, find those gift cards, and if you have no plans to use them for yourself, at least let them still be a gift to you.

Try Reverse Budgeting and Pay Yourself First

“Working with a budget called ‘reverse budgeting’ or ‘pay yourself first’ can help you prioritize savings over spending and expenses,” said Bonnie Ling Thich, a 10-year veteran of the financial and investment industries and founder of Finsavvy Panda. “This type of budgeting method comes in handy whenever the holiday hits because you don’t even have to think or stress about how much money you’re going to spend.”

Reverse budgeting involves automatically putting a portion of your paycheck into a savings or investment account before spending on anything else.

“This ensures you are paying yourself first before paying your bills — e.g., rent, food, utilities, etc. — and spending any money, e.g., charity, holiday parties, gathering, gifts, dining out, entertainment, etc.,” she said.

Celebrate a Secret Mid-December Shipping Holiday

It’s kind of a sneaky holiday, but Free Shipping Day is December 14th. If you do some planning, you can take advantage of this day and enjoy deals online and not have to pay shipping. And, in most cases, the gifts your purchase will still arrive before Christmas.

Don’t Overspend in Pursuit of Free Shipping

It’s great if you can take advantage of Free Shipping Day; but even if you can’t, never spend more than you were expecting just to get free shipping.

“Don’t feel pressured to throw another item in your cart just to save $5.99 on shipping charges,” said Shazia Virji, GM of credit services at Credit Sesame. “Chances are, you’ll end up spending more than you’d save in free shipping for something you didn’t need. If you’re shopping from multiple online stores, adding a few things here and there can really add up and blow your budget. Instead, try to match up your shopping list to retailers offering promotions that don’t require a minimum purchase.”

Get Your Loved Ones On Board With Saving

It can feel like your desires to save during the holidays are a burden on others, but it could be beneficial to talk with your family and friends about skipping the gift giving part of the holidays all together. If people are willing to join in, you’ll save all the money you would’ve spent on gifts…and maybe even be more aware of the blessings around you without the focus being on gifts.

“If you and your family/friends are all in a similar situation, it can be a good idea to float the idea of not giving gifts at all this year,” Purnell said. “If that idea doesn’t appeal, you could suggest a Secret Santa so everyone just buys one gift for a set budget, rather than buying gifts for everyone.”

Serve Others to Save

Lastly, remember that giving doesn’t always have to mean spending.

“As families seek to save money by holding out on gifts for their loved ones, it is likely they are looking for alternative ways to spread holiday cheer without overextending their financial capacity this year,” said Jake Hill, CEO of DebtHammer. “I am a huge fan of spending quality time with your family and loved ones by giving back to your local community. Instead of going shopping or going out to dinner, spend that time instead volunteering at a local organization that seeks to have a big social impact. There are so many opportunities like this during the holidays, and you can make it a family decision to where you choose to help out.”