According to the National Retail Federation, the average American spends about $1,000 on Christmas each year (source). Gifts, treats, decorations, and travel are great, but many of us don’t have a grand sitting around with which to pay for them.
Thankfully, the most wonderful time of the year doesn’t have to also be the priciest time of the year. Simple modifications to popular Christmas traditions can help make Christmas affordable while keeping it memorable and enjoyable.
Simple ways to save money on Christmas
Gift giving
If your family is anything like mine, then gifts are your single largest expense over Christmas. Gifts are not technically needed to celebrate Christmas, so an easy way to save money is to skip gift giving. This works for some families (for example, we don’t exchange gifts with family members on my side of the family). However, for many families, gift giving is a significant part of the Christmas holiday, so it’s an important tradition to maintain (this is the case with my husband’s side of the family). Thankfully, there are many ways to save money when exchanging gifts. Two of my favorites are having a stocking stuffer gift exchange and a secret Santa gift exchange. These, and many other approaches, are described in this list of alternative gift exchange ideas. I’ve tried several of these at various times in various settings and they’ve been so fun!
Wrapping paper and bows
If you are going to exchange gifts, then you’ll need to wrap them. Wrapping paper, ribbons, and bows can be pricey, but there are several ways to avoid this expense. One is to reuse old wrapping paper, bows, and gift bags. I know some individuals think it is tacky to keep paper and bows from opened gifts, but there’s no shame in it! In fact, not only is it good for your pocketbook, but it’s good for the environment. Gift bags are particularly great to reuse because they typically incur minimal wear and tear, allowing them to be utilized dozens of times.
Aside from used paper, gift bags, and bows, you likely have some items on hand that make great alternatives to wrapping paper. These include newsprint, scrap fabric, and pages from old books. Another great alternative is to use decorative boxes and reusable gift bags. You do have to purchase these initially, but once you have them, you can use them year after year.
Christmas dinner
An elaborate holiday meal can be quite costly, especially given the recent increase in grocery prices. However, there are several ways to save money when buying foods for Christmas dinner.
- Set a budget and stick to it. Decide how much you will spend on the meal and let this guide your planning. Choose dishes that allow you to serve foods you enjoy yet fit within your budgetary constraints.
- Watch the ads and make purchases over the weeks before Christmas. All the foods you need may not be on sale during the week before Christmas. However, if you purchase the nonperishable foods (or foods that can be frozen) over the month before Christmas, you are more likely to find many of the foods on sale. Additionally, it is helpful to shop at more than one grocery store. All the items may not be on sale at your preferred store, but you may be able to get a few on sale at one store, a few on sale at another store, and a few on sale at yet another store.
- Stick with homemade dishes as much as possible. In general, homemade versions of traditional dishes (pies, casseroles, breads, etc.) cost less than those prepared in stores or restaurants. They may take a little time to prepare, but putting in the time can save a substantial amount of money.
- Consider serving less expensive options. Some foods cost more (sometimes a lot more) than others. If you and your family will be pleased with less expensive options, then consider serving these. For example, serve green beans instead of asparagus, a simple cranberry sauce instead of a fancy cranberry salad, mashed potatoes with gravy instead of a twice baked potato casserole, etc. These less expensive foods can be just as tasty and hearty as their costly counterparts.
- Utilize coupons. Check your local newspaper and the websites of your favorite stores for coupons. Stores and manufacturers often offer coupons for traditional favorites around the holiday season.
Of course, you don’t have to serve a large, traditional Christmas dinner. One alternative is to serve a family favorite that isn’t traditional. We’ve done this several times. In fact, last year we had burrito bowls for Christmas dinner. Other favorites we might try someday include lasagna, fajitas, and homemade pizzas! Another option is having a potluck. Each family member can bring a dish to contribute. This can be a lot of fun because everyone can bring his or her favorite for the entire family to sample.
Decorations
If you already have decorations, then it shouldn’t cost anything to set these out. However, it is important to check what type of Christmas lights you have. Old Christmas lights may consume a lot of electricity and drive up your electric bill. Newer LED lights, on the other hand, can be operated for nearly nothing. If you have the former, you’ll want to consider if purchasing new ones is a good move.
If you don’t have decorations already, then you can use frugal approaches to get some. For example, you can make decorations out of items you have on hand, accept hand-me-down decorations from family and friends (this is how we got most of ours), or shop thrift stores for used items. Read more about frugal options for decorating here and here.
Christmas cards
When you send Christmas cards, you face two expenses: the cost of the cards and the cost of postage stamps. I used to send Christmas cards, but I stopped doing this several years ago. In addition to being free, I’ve found it to be much easier to simply check in with loved ones via a quick email or text message. If you send Christmas cards, you might want to consider using more affordable options such as e-cards or other alternatives that utilize technology. If you do choose to continue sending Christmas cards, you can save money by purchasing the cards on sale (they are generally most affordable when on clearance during after Christmas sales) and by handing out the cards to neighbors and other loved ones who live locally instead of sending these in the mail.
Family pictures
Many families like to take pictures amidst a festive scene each Christmas season. The services of a good professional photographer can be a bit expensive, so one way to save money is to find an alternative. One option is to take your own photos. We’ve had great success doing this! These photos might not be as great as they would be if taken by a professional, but they’re still quite wonderful. It’s also a lot of fun taking them! Another possibility is hiring a photography student or a photographer who is just beginning to build his or her portfolio. These individuals may charge less for their services.
Holiday travel
The entire Christmas season is a peak travel period. This means that hotels, airlines, and gas stations generally charge more during this time. Though it takes careful planning, it is possible to save money on Christmas travel. For example, if traveling by airplane, you can sometimes find more affordable tickets if you purchase them early or make reservations to actually fly on Christmas Day. When going to the airport, ask a friend to drive you so you don’t have to pay for parking. If driving, consider packing your own meals and snacks so you can avoid the cost of eating out. Additionally, you can try to stay with friends or family while traveling to avoid paying for hotel stays. If this isn’t possible, then try to stay at hotels that offer free breakfast. Find additional tips for saving money on Christmas travel here and here. Don’t despair if, even with these tips, travel remains too expensive for you. You can still have a meaningful time celebrating with family using a long-distance Christmas celebration.
Final thoughts
Christmas is such an important time for my family, so I’m glad that we can have an enjoyable time celebrating it regardless of how much money is in our bank accounts. Despite the length of this list, I’m sure there are lots of other strategies out there. What things do you do to save money on Christmas?
This is so important to us. We do end up spending money, but we spend money on practical gifts. Our kids get the clothes they need, or something useful we’ve been waiting for. read aloud books for the family, sometimes a game. This year we will focus on what my dad needs to make life easier, as he’s been declining in health.
I stopped sending cards because of the expense. But I do like to take a family picture. We usually go outdoors somewhere—often my an orphanage nearby where they have Christmas props set up.
Our meal stays the same, but I guess we’re just simple folks. We eat lasagna and it’s always homemade. 😊
Then only thing we will never be able to control is Grandma. She lives for Christmas, and she buys too much. That’s why we can stick to practical gifts, I guess. 😉 but it’s all good.
Great post.
Blessings,
Laurie
Ridge Haven Homestead
Homestead Blog Hop
Thanks for sharing all of this, Laurie!
I think the important thing is that we all do what works for our individual families. It sounds like you guys have gotten in a pattern that works well. Personally, I love lasagna, so I would love Christmas dinner! This year we have decided to have either nachos or fajitas. Everyone in the family loves these.