The holiday season is approaching quickly, and with it, the increased spending that often accompanies it. The National Retail Federation reported that the average American were on track to spend over $ 880.48 on holiday gifts, food, decorations and other seasonal items in 2025.* In this article, we’ll offer some time-tested tips to help you keep your holiday spending — and your stress levels — from spiraling out of control.
Create a realistic holiday budget
Before the holiday lights start twinkling, take a clear-eyed look at your finances. Figure out how much money you can comfortably spend without taking on debt. Break your budget into categories like gifts, food, travel and decorations so nothing gets overlooked. Many people are surprised when they calculate how much they spend during the holiday season and having a clear plan can go a long way toward preventing those January credit card blues. Using a budgeting app can make it easier to track spending in real time and keep yourself accountable.
Make a gift list and prioritize
Writing down everyone you plan to buy for is one of the simplest holiday budgeting tips that works every time. Once you have your list, assign a spending limit for each person — and stick to it. If your list feels too long, consider group gifts, Secret Santa exchanges or splitting costs with family members. Experiences like a family game night, baking day or shared concert tickets can mean more than expensive items and often create longer-lasting memories.
Take advantage of sales and discounts
Holiday sales can be a lifesaver if you plan ahead. Research major shopping days like Black Friday, Cyber Monday and Green Monday to time your purchases. Compare prices across retailers to make sure you’re getting the best deal — price comparison sites can help. Stack coupons, use cashback apps and consider loyalty programs that offer rewards or bonus discounts. A little prep work can stretch your budget much further and help you save money during the holidays.
Rethink presents: explore alternative gift ideas
Not every gift has to come from a store. Homemade treats, crafts or personalized cards can be more meaningful — and cost-effective. That said, don’t forget about Small Business Saturday if supporting local businesses is a priority for you. Local and independent retailers often run sales and other specials on hard-to-find products and unique gifts that day.
Some families even set themes like “handmade only” or “experience gifts” to encourage creativity. Consider gifting experiences like movie tickets, museum passes or a coffee date. Another thoughtful option is donating to a cause your loved one cares about in their name, turning your holiday spending into something that makes a wider impact.
Wrapping it up with a bow
The holidays should be a joyful time of year, not a stressful one. By planning ahead, sticking to your budget and getting creative with gift-giving, you can enjoy the season without financial regret. These practical tips for how to save money for the holidays will help you focus on what really matters — celebrating with the people you love while keeping your finances healthy. If you’re ready to take control of your seasonal spending, start now with a written plan and watch how much more relaxed (and debt-free!) January feels.
*National Retail Federation, “Consumers to Spend Second-Highest Amount on Record, According to NRF Holiday Survey ”press release, 10/16/2025.