12 top tips to save money during the holidays

If you want to keep the holiday spirit alive without breaking the bank, this list is for you! Americans plan to spend more than ever this holiday season – over $900 a person, says the National Retail Federation. Other sources predict even higher. In a Gallup poll, consumers say they’ll spend an average of $1,014 on gifts and holiday-related expenses in 2024. 

That’s holly-jolly if you have the cash to spare. Yet, nearly half of us will pay with loans or credit cards. And 28% of us are still paying off 2023 holiday debt, according to NerdWallet. 

Our gift to you? Here are some very doable strategies to spend less and save more. 

Top holiday saving tips for a debt-free season

We all know about Black Friday, Cyber Monday, and holiday sales in general. But there’s a lot more you can do to keep your holiday spending down. Try making these a regular part of your annual holiday plans. 

Budgeting and planning

1. Set a realistic budget 

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• List your planned and potential expenses. Include everything from decorations and dinners to gifts, food, clothing, donations, and even your New Year’s sound-makers. 

• Look at your cash flow. How much can you afford to spend after covering your monthly household expenses? Compare the two. 

• If the total scares you, work backward. What can you cut? What can you reuse from last year? Adjust your budget accordingly. 

2. Commit to a no-debt plan

It’s easy to get caught up in the frenzy of holiday buzz. If possible, create a no-debt budget – a goal to spend only in cash. If you must bust out the credit card, charge only what you can fully pay off within 30 days. Otherwise, you’re paying *way more* for those gifts in interest fees. 

3. Start planning early

• 3-6 months ahead, set up a high-yield savings account (earlier, if you can!)

• Set up auto-deposits and Round Ups – automatically round up purchases to the next dollar and direct them to your savings

• Set seasonal sale reminders and buy early before surge-pricing hits

4. Use digital tools as saving superpowers 

• Use gift list apps like Santa’s Bag to track purchases

• Use an all-in-one money app like Greenlight that makes saving (and giving) easy:

a. Set spending limits and notifications.

b. Track your budget and purchases.

c. Send gift-giving links.

• Install automatic digital coupons. Deal apps like Rakuten, Retail Me Not, and some credit cards offer browser extensions that search for the best deal and auto-apply coupon codes.

5. Set spending limits

• At least ⅔ of holiday spending goes to gifts, typically. Set spending limits for family, friends, colleagues, and the rest. Ex: A maximum of $50 for family gifts, $30 for friends, and $20 for Secret Santa.

• Cap non-gift spending, too. Set a maximum for food, treats, decorations, greeting cards, and other holiday fanfare.

6. Set price alerts

Eyeing a specific item you hope will go on sale? Many online retailers let you request price-drop alerts via email or text. When an item reaches your target price, it triggers an automatic notification so you can jump on the deal. Many coupon and discount apps do this, too. 

Decorating and wrapping

7. Trim your tree and decorating budget

Americans plan to drop more than $150 on decorations alone. Reuse and repurpose! 

• Ornaments, garlands, wreaths, lights, lawn Santas, and wrapping paper can last years. 

• Go faux vs. fresh. Fake trees can last a lifetime, no cutting down a living tree. Over time, you’ll spend more buying a new live tree every year. 

8. Recycle wrapping paper and ribbons 

• Wrap with reusable bags to save money (and trees) on fancy wrapping paper.

• Save bows, ribbons, and other pretty packaging. Many wrapping materials are non-recyclable. Recycle what you can and pack the rest away for next year. 

9. Shop post-holiday   

Stores want all their holiday merchandise gone before New Year’s (or before). You’ll find the deepest discounts right after Christmas, often from 50% to 80% off retail. It’s the perfect time to score that fancy faux tree for a fraction of the price. 

Gifts and giving

10. Meaningful vs. monetary gifts

• Make something yourself (art, crafts, food, poetry, playlists …).

• Donate your time. Offer a “movie night at home,” “a weekend picnic,” or even “babysitting hours” as your gift.

• Pool money with others to donate to a charity or give to one on someone’s behalf.

• Gift by age and personality. Focusing thoughtfully on the individual often leads to more personal (and affordable) ideas. A book your mom will devour, a fun gadget for your partner, or presents that a teenager would love.   

11. Give like Gen Z

Generation Z has a reputation for being more money and socially conscious, including with presents. Think secondhand, upcycled, organic, sustainably sourced, or gifts that align with their values. 

12. One gift to rule them all 

Deciding on a universal gift or giving gift cards only is another easy way to control spending and stay on budget. Whether it’s homemade cookies or a $20 Starbucks card, it makes budgeting and tracking a breeze. Less shopping time, too!

Make merry with less money!

‘Tis the season to spread cheer and good tidings, not debt. All the tips and tricks on our list work year-round, though. The earlier you start, the more you can save. Plan early, shop intentionally, get creative, and embrace the spirit of meaningful giving vs. spending. 

Want more smart money tips? Head to the Greenlight Learning Center for fresh ideas and resources on budgeting, saving, and building wealth for your family.