All that holiday cheer can burn a hole in your pocket. According to the National Retail Federation, the average person spent $874.67 on winter holiday gifts and celebrations in 2023.
And if you're single, don't expect a major discount on holiday expenses. With higher per-person living costs than dual-income households, you're still on the hook for a hefty holiday bill. But instead of skipping the festivities altogether, there are smarter ways to save and spend this holiday season.
1. Make a Budget, Check It Twice
Not budgeting is a common bad money habit, and failing to stick to a money plan can cause you to spiral into debt. Just like a spending plan for everyday expenses sets guardrails, a holiday budget can help you keep your end-of-year spending in check. This rings especially true if you use your credit card for holiday purchases.
Start by making a list of holiday-related expenses as early as possible. Include holiday attire, travel expenses and everyone on your gift list. Don't overlook the small stuff that adds up—like greeting cards, postage, gift wrap and decorations. Estimate what you'll spend on each item and set a firm budget. Then, check your savings to see what you've set aside. This can help you stay within your budget.
2. Use a Budgeting App
Long gone are the days of jotting your spending in a notebook. If you use a budgeting app, consider creating a separate budget just for end-of-year spending. That way, you can allocate the proper amount for holiday spending and get specific on how much you'd like to spend for each category.
3. Speed Up the Savings
In a perfect world, you'd have saved for the holidays all year. But life—along with bills, debt and unexpected expenses—can leave you feeling unprepared. To avoid a holiday debt hangover, aim to save $500 in 30 days by tightening up your spending and boosting your income. Look for easy wins, like canceling unused subscriptions and saving on groceries, dining out and transportation.
Another idea? Make your money work harder by stashing it in a high yield savings account, money market account or certificate of deposit (CD) account. The interest earned can help speed up your savings even more.
4. Review Your Gift List
Go over your gift list and see who you can tactfully remove. Depending on your relationship, expectations, and the obligation factor, you might opt to treat them on their birthday instead.
For those you give gifts out of formality—like your mail carrier, hairstylist or dog walker—a heartfelt thank-you card and an extra tip can go a long way. That way, they aren't bombarded with a buffet of baked goods or another scented candle during the holidays.
5. Chat About Gift-Giving With Loved Ones
If you're feeling particularly bold, bring up skipping gifts with certain friends and family members. Let them know you still care about them but you're keeping an eye on your budget. They might be coming from the same place. You might suggest spending quality time together in lieu of exchanging gifts so you can both bow out of holiday gift-giving.
READ MORE: What's Loud Budgeting and How Can It Make Your Savings Sing?
6. Budget for Experiential Gifts
Research reveals that we tend to be happier when we spend on experiences rather than material things. Memories of experiences grow stronger over time, adding more meaning and joy, while the thrill of material possessions fades quickly.
So, plan and shop for experiential gifts. These purchases don't have to break the bank—a fun day trip or local outing can be just as memorable as a pricey trip to Ibiza. Check deal sites or local listings for affordable experiences, or offer an IOU for an outing in the new year to keep your holiday spending in check. This can make for a less spendy November and December.
7. Shop Early and Often
The holidays can be expensive. And let's be honest: They happen every year. While the holidays do have a way of creeping up on us, consider spreading out your shopping to avoid getting hit with a holiday debt hangover in the new year.
To snag the deepest discounts and save money on gifts, shop sales throughout the year. For instance, you can often scoop up holiday decorations, gift wrap and cards for up to 90% off right after Christmas.
Beyond that, why not take advantage of major sales throughout the year—like during Memorial Day and Labor Day—to stock up on gifts? Note that electronics often have deep discounts on Black Friday, on Cyber Monday and in February. By planning ahead, you can save big and avoid the last-minute spending crunch.
8. Sign Up for Sales Alerts
Sign up for emails and text alerts, and add reminders on social media from your favorite retailers. That way, you can stay in the loop on upcoming sales and the best deals. A quick word of caution: Getting swept up in a sales frenzy can be far too easy. Be choosy, and only sign up for alerts from a few places where you can do the bulk of your holiday shopping.
9. Shop Through Apps
There's no shortage of apps that can alert you to online deals. Shopping platforms and browser extensions can help you get the best prices possible on this season's hottest toys or coveted holiday gifts.
To stack discounts, add promo codes and install a shopping browser extension that helps you find coupons from online retailers. They can also alert you when there's a price drop on an item you've had your eye on.
10. Make and Bake vs. Buy
Like baking? Or are you a crafter? If so, consider the do-it-yourself route and make holiday cards, decorations and gifts instead of spending money on store-bought versions.
DIY presents don't have to be elaborate or difficult to make. For instance, a few tutorials from YouTube, TikTok or Pinterest can teach you how to create fizzy bath balls, hot cocoa bombs or peppermint bark. Reduce waste by using old fabric and getting creative with the Furoshiki Japanese gift-wrapping technique. Or repurpose and upcycle items you have lying around the house.
11. Book Holiday Travel Strategically
The holidays are a peak travel period, making it tough to find flight deals. If you plan to travel to visit family, your best bet is to start looking for flights a few months ahead of time. For Thanksgiving, the best prices on flights usually appear one to two months before your travel dates.
Flexibility helps—so opt for red-eyes, layovers or midweek travel to snag cheaper fares. If you can, travel a week or two early to avoid the holiday rush and pricier fares. Or consider flying on the holiday itself. Flying on Thanksgiving Day can be 11% cheaper than on other days that week, and flights on New Year's Eve or New Year's Day are often 14% and 9% cheaper, respectively.
Another way to save: Book your travel with a credit card that offers trip cancellation or interruption insurance as part of its perks. That's travel insurance you don't have to pay extra for. Plus, it can save you money if there's a snag during your vacation.
12. Find Other Ways To Save on Holiday Travel
Beyond saving on airfare, explore other cost-cutting strategies. Consider traveling by bus or carpooling with family and friends. If you're not staying with relatives, book an Airbnb with a kitchen to cook meals and avoid dining out. Plan affordable bonding activities like a holiday movie night or cookie baking competition. You can also check deal platforms for last-minute specials on holiday excursions.
13. Look Into Refurbished or Gently Used Items
Refurbished electronics like TVs, smartphones and laptops are often overlooked, but they can make excellent holiday gifts. These items have been restored to working order and are typically sold at a big discount—up to 70% off the retail price of new products.
Open-box products—items that were opened but never used—also have slashed prices. Some major electronics retailers have open-box sections, so scour those aisles or look online to see what's available.
14. Go Used
Online marketplaces like Facebook Marketplace, OfferUp and Poshmark may offer great deals on gently used or resale items. Browse regularly, as you might find the perfect gift for someone on your list.
Along the same lines, your local Buy Nothing group can be a great place to find presents, gift wrap, home decor, baking supplies, cards and outfits for your holiday needs. Or, put on your organizer hat and arrange a free marketplace. Ask your neighbors and friends to gather gently used or new items they don't need. You can donate whatever doesn't get taken.
15. Give Gift Cards
Gift cards have a bad rap as being a touch impersonal, but they're often preferred presents. Plus, by setting a specific amount on a gift card, you can control your budget and avoid the temptation to overspend. This fixed limit ensures that you only spend what you've set for each recipient, which can help you stick to your financial goals.
The recipient can buy whatever they please—no regifting or returning an item here! Gift cards also remove the pressure of fretting over the perfect present or creating curated saved shopping carts while you deliberate over what to get someone (we've all been there).
You can also use the gift cards you have lying around to pay for festive outfits and decorations and during your holiday travels to help you stick to your budget. Another tip? Some big-box chains offer discounts on gift cards for various retailers, so you can buy them at a lower price and get more bang for your buck. For instance, you may be able to buy a spa card for $75 that's worth $100, or get a discount on a four-pack to an amusement park.
16. Suggest Secret Santa
If everyone is feeling the pinch from holiday spending, organizing a Secret Santa gift exchange can be one way to relieve the stress. With Secret Santa, you only buy one gift instead of many, which is easier on the wallet and can make gift-giving more fun.
Or, consider a white elephant gift swap. In this game, everyone brings a quirky or silly gift and takes turns choosing from the pile or “stealing" gifts from others. It's a playful way to exchange presents without breaking the bank, and it can add a lot of laughs and holiday joy to gatherings.
17. Give One Gift Per Family
Skip individual gifts for family members and colleagues. Instead, create a themed gift basket based on the group's interests or likes—for example, a baseball-themed basket or a "Night Out for the Movie Lovers" experience package. It's equally thoughtful and can help you save some beans over the holidays.
18. Team Up on Gift-Giving
Just because you're single doesn't mean you can't join forces on gift-giving like partnered folks do. See if a sibling, friend, colleague or family member could benefit from splitting the costs on a shared gift.
The Last Word
Evidence reveals that we're happier when we spend on others than on ourselves. And getting into the generous spirit of the holidays when you're single doesn't mean blowing the budget. With some planning, practicality and creative thinking—and tapping into available resources—you can avoid a holiday debt hangover and stick to your money goals.
