Holiday budgets for teens: Top spending and saving tips

Most kids rely on their parents for holiday spending money, especially pre-high school. But holiday shopping can be an excellent real-world way for parents to help teens learn to budget. In fact, 35% of teenagers spend their own money from jobs on holiday gifts. And a whopping 70% worry about how rising prices will impact their holiday spending power (welcome to adulthood!). 

Thankfully, you don’t need a huge budget to spread cheer. You just need a plan, creativity, and some smart saving tricks. Here, we break down practical ways teens can stretch their dollars further during the holiday season.

Challenges teens face with holiday spending

Even if you subsidize your child’s gift-giving, being a teenage shopper comes with unique challenges. Here are a few common struggles teens deal with during this time of year:

1. Limited funds

Age and time impact how much time teens can devote to earning money. Even if they’re old enough to work, they must work around school obligations. 

2. Access to a parent-approved debit card

Many teens also don’t have easy access to online shopping, whether due to resources or just not being old enough to use a credit card. Family-friendly debit cards like Greenlight can be effective teaching tools, too. Teens get some freedom to make purchases – parents get to set limits and approve transactions in-app. 

3. Gifting obligations 

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With family, friends, teachers, and Secret Santas to consider, the pressure to give can quickly overwhelm your wallet. Parents know this well!

4. Transportation 

Getting to stores, holiday markets, or dropping off gifts can be tricky if your teen doesn’t drive or have access to public transportation – especially if they rely on busy parents. 

How to create a holiday budget

The first step to holiday savings is setting up a budget. Here's how to build one that works for you:

1. Add up your income 

Start by calculating how much money you currently have saved and how much you’ll earn between now and the holidays. Winter break jobs are a great way to get experience and extra cash. 

2. List your expenses 

Make a list of all the holiday-related expenses you anticipate. Include gifts, wrapping materials, holiday outings, transportation costs, and even clothing and accessories.

3. Set spending limits 

Determine how much you can reasonably spend for each category. For example, “$50 for family gifts, $30 for friends, and $20 for Secret Santa.”

4. Track your spending 

Use a money app, your phone’s notes, or a simple notebook to track purchases and ensure you stick to your limits.

Top ways to save on holiday gifts

Once you have a budget, it’s time to shop! Thoughtful gifts don’t have to cost a fortune. Get creative with these options:

1. Shop thrift stores

One person’s trash is another’s treasure. You can get all kinds of good stuff for less at second-hand stores, from designer bags to vintage toys and cool art.

2. Recycle or upcycle 

Have books, trinkets, or clothes in great condition you no longer need? Consider giving them to someone who’d love them, along with a personal note.

3. Homemade creations 

Show off your skills with DIY projects! Baking cookies, knitting a scarf, or creating DIY jewelry are heartfelt and affordable options.

4. School holiday boutiques 

Check out holiday fairs or stalls at school. You can often find affordable crafts, decorations, and gift ideas made by peers or local businesses and artisans.

5. Experiences 

Share your time instead of items. Offer a “movie night at home,” “a weekend picnic,” or even “babysitting hours” as your gift.

6. The gift of giving 

Suggest pooling money with friends or family to donate to a charity in someone’s name. It’s thoughtful and impactful. Or give time back to others (like parents!) – offer to do chores or other household tasks for free. 

Savvy saving tips for the holidays

The earlier you start saving and budgeting, the easier it will be. Follow these tips to stretch your dollars:

1. Start early

Avoid last-minute panic by planning ahead. Shop for gifts and supplies months in advance when prices are lower.

2. Look for sales and discounts

Set reminders for Black Friday, Cyber Monday, and holiday sales, and use coupons or promo codes to lower costs.

3. Set a gift-giving limit

Propose a spending cap with friends and family during gift exchanges. Everyone will appreciate saving a little money.

4. Track everything

Write down what you’re buying, how much you’re spending, and how it compares to your budget. Make adjustments if needed.

5. Cut unnecessary expenses

Skip the pricey coffee runs or extra snacks for a few weeks to keep more money in your holiday budget.

6. Earn extra cash

If you have time, consider small gig opportunities like babysitting, dog walking, tutoring, or selling items you no longer need. Or take on a holiday side hustle – many seasonal jobs pay more during the peak holiday season to help with demand. 

Prioritize your savings goals this holiday season

The holidays are about making memories, not going into debt. Start planning early, explore creative ideas for gifts, and take advantage of savings opportunities to give meaningful presents within your budget. Set spending limits, take advantage of sales and discounts, and think outside the gift box. 

Want more smart money tips for kids? Bookmark the Greenlight Learning Center for fresh ideas, games, and tools for budgeting, smart spending, and saving for teens.