10 Smart Ways to Celebrate Christmas Without Going Broke

As the cost of living rises, Christmas puts an additional financial strain. Learn how to plan fun activities, prepare a festive dinner, and exchange gifts this holiday season without breaking the bank.

Celebrating Christmas with a family on a budget

The holiday season is a time to gather with our loved ones, celebrate beloved traditions, and attend social events. Yet, it’s also a time for excessive spending: buying gifts, planning a festive dinner, and organizing leisure time with family and friends. In this article, we will show how to celebrate Christmas on a budget and make the holiday memorable. 

10 Strategies to celebrate Christmas without getting into debt 

Plan thoroughly 

To save during the expensive holiday season, you should be very thoughtful about your spending. Forget about the impulsive purchases and last-minute gift shopping! You need to plan carefully and stick to a budget. Here’s how to do it: 

  1. Create a budget. Determine how much you can realistically spend on gifts, decorations, party expenses, food, and else. Use a budgeting app to keep track of everything. 
  2. Save money. Start putting money aside months before Christmas to avoid additional financial strain in December. Consider a side gig if you want to treat your loved ones to a lavish celebration. 
  3. Buy gifts early. Take advantage of Black Friday and other early holiday sales. Compare prices across different retailers to find the best deal. 

Many people overspend due to the lack of planning. Having a budget and shopping months in advance will help you save a lot on impulsive purchases. 

Also read:
6 Best Christmas Apps to Simplify Holiday Planning
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6 Best Christmas Apps to Simplify Holiday Planning

Repurpose and sell 

As you clean and declutter your house before the holidays, you can find items you no longer use. Instead of taking them out to the trash, consider selling or repurposing such items. For example, you can sell clothes in good condition to second-hand stores, such as thredUp or Poshmark. In addition to clothes, you may want to sell books, vintage vinyl records, and other items that collect dust on shelves. 

Repurposing can help you save, too. Old toys can be used as decorations, magazine pages work great for gift wrapping, and beautiful bottles can serve as ornament displays. 

Save on a Christmas dinner

People often overspend on a Christmas dinner. To avoid buying too much food and throwing it away a few days later, do this: 

  1. Buy a smaller turkey. If you cannot imagine the holidays without a traditional roast turkey, consider buying a smaller one and frozen, not fresh – they are usually cheaper. 
  2. Plan the menu and portions. Consider the number of guests and plan the menu to ensure that everyone enjoys the dinner and minimize leftovers. 
  3. Cut off on the sides. Thus, you’ll minimize waste as many guests will be more excited about the main course.  
  4. Organize a potluck. Ask each guest to bring one dish (or order a delivery) to take the expenses off the host. 

Do a Secret Santa 

The Secret Santa exchange is associated with the workplace for many. However, by organizing a gift exchange game, you can save a lot on presents, as you’ll need to buy only one personalized gift for a family member. You can do Secret Santa with coworkers, friends, and family separately, thus slashing costs on gifts for each group. 

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Did you know? On average, each American spends $997.73 on Christmas. About 65% of this amount is spent on gifts. 

For those of you who are not familiar with the exchange, here’s how it works. Players draw names and secretly prepare a gift for the assigned person. Participants can bring gifts to the Christmas party and exchange them in person, or play remotely and send presents by mail. 

To draw names in seconds and streamline the exchange, use the MySanta app. In it, players can share gift preferences, use wishlists, and secretly chat with their Secret Santa. Plus, the app tracks who bought a present and who hasn’t, and sends reminders. 

Try our MySanta app
Organize your first gift exchange today! You can create wishlists, add exclusions, and communicate with your giftee secretly.
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Try our MySanta app

Get thoughtful gifts for kids

Each parent wants to treat their child to something special this Christmas. At the same time, you probably don’t want to overspend on toys, most of which your kid will soon ignore.

To prepare great presents and minimize expenses, use the three-gift rule. It means buying three presents for your little one: something they want, something they need, and something to read. Thus, the kid receives a few gifts and you can avoid overspending. 

Shop local and second-hand

Shopping local keeps your costs down, minimizes waste, and also supports your community as the money goes to a business owner who lives in your neighborhood. Plus, in a local store, you can find something unique – beautiful décor, vintage books, accessories, jewelry, artwork, and many more! 

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Did you know? In 2024, 24% of holiday shoppers bought something from local or small businesses.

If you have a tight budget, don’t overlook second-hand stores. Savvy shoppers can find great ceramics, board games, old comic books, sports items, and more. Plus, second-hand doesn’t always mean low quality, as many items are in perfect condition. 

Use a DIY approach 

One way to make your present truly personalized and save a lot of money on countless gifts is by giving DIY items. There is probably something you enjoy doing, such as baking cookies and cakes, knitting or crocheting, oil painting, or making preserved food. 

6 Christmas DIY gift ideas 

  1. Handmade soap. Use melt-and-pour soap base, essential oils (such as cinnamon, myrrh, or orange), and natural colorants. 
  2. DIY candles. You’ll need soy wax flakes, essential oils, and decorative containers to make custom candles. 
  3. Photo album. Create a photo album of your kids for their grandparents. 
  4. Homemade granola. Mix oats, nuts, seeds, and dried fruit with maple syrup and bake until golden. A great gift for fitness enthusiasts! 
  5. Sugar scrub. Mix sugar with coconut or olive oil, and add any essential oil to create an effective organic scrub. 
  6. A custom mug. Use paint markers to create a simple design or write personalized quotes. 

Prioritize free entertainment

If paying for entertainment is a bit over budget for you this year, consider free events and festivities held in your community. Visit a Christmas market with kids, watch Christmas carols in the park, and enjoy the light displays. Consider exploring new locations in the city or taking a long walk. 

If it snows in winter in your area, plan outdoor games and activities, such as a Scavenger Hunt, making a snowman, ice-skating, and having a snowball fight. Prioritize impressions and quality time with your loved ones, as joy and connections are the true meaning of the holiday season! 

Also read:
Smart Christmas Shopping: Tips to Save Money on Gifts
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Smart Christmas Shopping: Tips to Save Money on Gifts

Run a movie night 

If your family is a bunch of couch potatoes who don’t enjoy spending time outdoors, organizing a movie night is a perfect holiday activity. The recipe is simple: make a list of classic and new Christmas movies to stream, grab drinks and snacks, and invite your closest friends to enjoy the best movies in a relaxed atmosphere. 

Top 10 Christmas movies to stream this year 

1. It's a Wonderful Life
2. Home Alone 
3. Miracle On 34th Street 
4. Klaus 
5. Santa Claus: The Movie 
6. The Polar Express
7. Elf
8. How The Grinch Stole Christmas
9. A Charlie Brown Christmas
10. Gremlins

Harness the power of AI 

AI tools can ease your life in many ways, and choosing holiday gifts is no exception. If you puzzle over what to give to your best friend or sister-in-law this year, try asking ChatGPT. It can pick presents based on the recipient’s interests, age, profession, and any other details you share, thus relieving you from the stress of decision-making. 

3 ChatGPT prompts for perfect Christmas gift-giving  

  1. Give 10 affordable but meaningful gift ideas for my friend [mention your friend’s age, interests, and other details].
  2. Suggest a list of gifts for someone who already has everything. They appreciate [mention the type of gifts the person enjoys and their interests]. Target price range [add amount].
  3. What gift can I give that solves [the recipient’s problem, such as poor time management]. I’m giving a gift to [the person’s age and a few facts about them]. 

Christmas celebration doesn’t have to be extravagant. With the recommendations above, you can organize a joyful celebration for your loved ones without getting into debt and remind everyone about the true meaning of the holiday. 

FAQs

What is the cheapest way to celebrate Christmas as a family?

Focus on creating memories through free or low-cost activities. Organize a movie night at home, bake cookies together, craft homemade decorations, or go caroling in the neighborhood. Take a DIY family photo shoot to capture the memories. If you have guests coming over, host a potluck-style Christmas dinner.

What’s the best way to split holiday costs with friends or family?

Clear communication is the king. Discuss how you'll split holiday spending with your family beforehand. You can assign dishes for a potluck, ask guests to bring wine, and set a spending limit for gifts. Use a shared expense tracking app to keep things fair.

How do I avoid overspending on Christmas decorations?

Opt for a minimalist approach by repurposing existing decorations, crafting homemade ornaments from natural materials, and shopping at thrift stores or after-Christmas sales for discounted items. Choose timeless decorations that can be enjoyed for years to come.