How to Save Money While Preparing for the Holiday Season

image of holiday spending

When the holiday season approaches, families are always looking for ways to celebrate without overspending. With inflation still impacting prices and consumer habits shifting toward value and flexibility, smart planning is more important than ever. Here are updated strategies to help you save on gifts, meals, and other holiday expenses.

Smart Gift Buying Strategies

Holiday shopping seems to start earlier every year, with many consumers purchasing gifts in October or even sooner to avoid price hikes and shipping delays. Here’s how to save:

  • Start Early & Shop Smart: Retailers now offer extended Black Friday and Cyber Week deals throughout November. Use AI-powered shopping tools like Walmart’s app or browser extensions like Capital One Shopping to find the best prices.
  • Use Top Cashback Apps: Apps like Rakuten, Ibotta, Fetch, and Upside offer cashback on purchases from thousands of retailers. Rakuten alone partners with over 3,500 stores and pays quarterly via PayPal or check.
  • DIY & Personalized Gifts: Homemade gifts remain meaningful and budget-friendly. Consider baking, crafting, or creating photo gifts.
  • Gift Exchanges & Secret Santa: Family lotteries are still a great way to reduce the number of gifts while keeping the fun and thoughtfulness alive.

Holiday Meal Savings Tips

Grocery prices remain high, but loyalty programs and strategic shopping can help:

  • Potluck-Style Gatherings: Share the cooking load and costs by having guests bring dishes.
  • Use Loyalty Programs: Kroger’s Boost, Target Circle, and Safeway’s Just for U offer discounts, fuel points, and personalized deals. Be aware of changes—Kroger points now expire faster, and Target reduced grocery cashback to 0.5%.
  • Digital Coupons & Apps: Many stores offer digital coupons through their apps. Combine these with cashback apps for double savings.
  • Simplify Your Menu: Focus on classic dishes with affordable ingredients. Buying non-perishables early can also help avoid peak pricing.

Installment Options: Layaway vs. Buy Now Pay Later (BNPL)

Layaway Programs (Still Available!)

While some major retailers like Walmart have shifted to BNPL, others like Burlington, Kmart, and Sears still offer traditional layaway programs with no credit checks and no interest.

Buy Now, Pay Later (BNPL)

BNPL services like Klarna, Affirm, and Afterpay are now mainstream, especially among Gen Z and Millennials. Half of holiday shoppers plan to use BNPL this season. However, be cautious:

  • Pros: Flexible payments, often interest-free if paid on time.
  • Cons: Missed payments can lead to fees, interest, and credit score damage.

BNPL usage has surged, with average balances nearing $760 and growing concerns about overspending and debt accumulation.

Holiday Shopping Trends to Watch

  • Self-Gifting: More shoppers are buying for themselves this year, so retailers are tailoring promotions accordingly.
  • Sustainability & Resale: Eco-conscious and secondhand gifts are gaining popularity.
  • Social Commerce & AI Discovery: Shopping via social media and AI-powered search tools is on the rise.

Final Tips for a Budget-Friendly Holiday

Set a realistic budget and stick to it.

  • Use a combination of loyalty programs, cashback apps, and coupons.
  • Avoid impulse purchases—especially with BNPL.
  • Plan early to avoid last-minute stress and inflated prices.

With thoughtful planning and the right tools, you can enjoy a joyful holiday season without financial strain.

  • Popular retailers like Amazon, Target, and Best Buy offer early access to holiday deals through their apps and email newsletters. Signing up for these alerts can help you snag limited-time offers.
  • Consider using browser extensions such as Honey or RetailMeNot to automatically apply coupon codes at checkout.
  • For DIY gifts, websites like Pinterest and Etsy provide inspiration for handmade crafts, personalized ornaments, and budget-friendly gift baskets.
  • Warehouse clubs like Costco and Sam’s Club offer bulk pricing on holiday staples, which can be ideal for large gatherings.
  • Albertsons and Giant Eagle have seasonal promotions that include free turkeys or hams with qualifying purchases.
  • Apps like Flipp and Basket help compare grocery prices across stores, ensuring you get the best deal on ingredients.
  • Some BNPL services now offer integration with budgeting apps to help users track upcoming payments and avoid overspending.
  • Retailers like Macy’s and GameStop still offer layaway options during the holiday season, especially for high-ticket items like electronics and toys.
  • Before choosing BNPL, check if your credit card offers 0% interest promotional periods, which may be a safer alternative.
  • Retailers like ThredUp and Poshmark are promoting secondhand fashion as eco-friendly gift options.
  • TikTok and Instagram are increasingly used for product discovery, with influencers sharing curated gift guides and exclusive promo codes.
  • Subscription boxes for food, books, and hobbies are trending as thoughtful gifts that keep giving beyond the holidays.
  • Create a holiday spreadsheet to track spending across categories like gifts, food, travel, and decorations.
  • Use prepaid debit cards or gift cards to limit spending and avoid credit card debt.
  • Consider hosting virtual gift exchanges or celebrations to reduce travel and entertainment costs.

With a little planning and some simple strategies, it’s possible to enjoy this holiday season without overspending. The key is to plan early, stick to a budget, and make the most of opportunities to save. You’ll enjoy the holidays even more when you experience the peace of mind that comes from knowing you didn’t put your family’s finances in jeopardy.