You don’t have to be a cheapskate to save money during the holidays.

The holiday season is interesting. Spending time with friends and family, attending parties, traveling to see loved ones – there is no shortage of things to do. But this excitement can come at a cost. And many people are looking for ways to reduce these costs.

A recent CNET survey found that 30% of American shoppers plan to spend less this holiday season than last year. This makes sense given the higher cost of living. And it’s important not to spend too much on the holidays. Ultimately, overspending can lead to long-term consequences such as high-interest debt and depleting your savings account.

But how can you avoid breaking the bank this holiday season? These tips may help.

7 Ways to Avoid Overspending on Vacation

You don’t have to go into the red to have a happy holiday season. Here are some simple tips to help cut costs.

📋 Create a budget

Responsible vacation spending starts with responsible budgeting. Start by thinking about everything you plan to spend this holiday season. This includes gifts, travel, food, decorations and anything else you might need.

Now think about the money you’ve already saved and the money you plan to save before those expenses arise. This will give you an idea of ​​how much you can afford to spend on each event. Set a hard limit on each expense and decide now to stick to that limit.

Pro tip: These holiday budgeting apps make it easy to set up and stick to your spending goals. They can also help you create gift lists and keep track of which gifts you’ve bought and which ones you still need to buy.

🎁 Spend less on gifts

For most people, gifts during the holidays are a significant expense. My budget includes gifts for 13 children, not to mention the adults I plan to buy gifts for, so I know how important it is not to go overboard. Here are some ways to spend less:

• Buy fewer gifts: If you typically buy more than one gift per recipient, consider cutting back this year.

• Buy for fewer people: If you don’t have enough money to comfortably buy gifts for everyone on your list, consider narrowing down your list of recipients, prioritizing children and those closest to you.

• Give gifts: My favorite gift I’ve ever received was a 10″ x 8″ painting my kids made for Father’s Day. If my house was on fire, this photo would be the first thing I would grab. This gift cost less than $3 to make, but it means more than anything I have. From baked goods to bath bombs, there are plenty of homemade gifts you can make to show your loved ones that you care about them.

• I offer a gift exchange: Share gift-giving games like Secret Santa or White Elephant in your social circles. They can be a fun addition to your holiday parties and cut costs for everyone involved.

• Take advantage of sales: The holiday season is also a selling season. Buy gifts during sales like Black Friday and Cyber ​​Monday to save money.

✈️ Travel cheaper

Hotel stays, airfare and meals can add up quickly on the road. But there are plenty of ways to get where you need to go for less. The easiest option is to stay home this year, but if you don’t want to do that, here are some other tips for traveling more affordably.

• Skip hotel: Arrange a stay with friends or family to save on hotel costs.

• Take advantage of travel bonuses: Use your credit card travel rewards to cover expenses like airfare, lodging, and car rentals.

• Snack Pack: If you plan to go on a long trip, take snacks and drinks with you. The less you have to rely on expensive airport food and other travel amenities, the lower your costs will be.

• Save on gasoline: Road trip? Save on gas by using an app like GasBuddy to find the cheapest gas station on your route.

Pro tip: See which credit cards our experts recommend for holidays.

🎉 Keep your hosting simple

It’s always nice to host friends and family, but you don’t have to spend money to do it. Consider turning the party into a potluck so you don’t have to pay for all the drinks and food. Use the decorations of yesteryear rather than trying to outdo what you did before. The most important thing is to spend quality time with your guests.

☃️ Look for inexpensive or free events.

You can create vacation memories for little (or any!) money. Some ideas include:

• Explore free local events: Look for local events in your city, county, or even your local church.

• Take decorations: Take a walk or drive with your family to admire the surrounding lanterns.

• Perform a cookie exchange: Ask friends and family to bring a batch of their favorite holiday baked goods and swap them. Everyone will go home with a variety of treats, and you won’t have to spend a lot of time in the kitchen.

• Let’s look at the crafts: From gingerbread houses to homemade ornaments, crafting with your kids can be a fun way to pass the time and make inexpensive decorations for the home.

• Volunteer: The proverb “It is better to give than to receive” is especially true during the holidays. Consider donating your time to a local food bank or other charitable organization for a rewarding experience that doesn’t cost a penny.

💵 Cash payment

Studies have proven that spending cash is more painful than using a credit card or adding an item to your online cart. By paying for holiday expenses in cash, you’ll be less likely to spend money on impulse purchases and more likely to think more carefully about what you buy.

Pro tip: When planning your holiday shopping trip, only bring with you the amount of money you want to spend. When your money runs low, resist the urge to pull out your credit or debit card to cover any excess.

🙅‍♀️ Avoid impulsive purchases.

Many stores have perfected the science of placing items in specific locations to encourage impulse spending. That’s why you’ll find candy and drinks at the registers and tempting displays at the end caps of every aisle.

These stores take advantage of the fact that about 73% of Americans say the majority of purchases they make are unplanned. But that extra expense every time you go to the store can add up.

So, make a list of everything you plan to buy and try to buy only what is on the list.

A happy holiday doesn’t have to cost a ton of money.

The holidays are a favorite time of year for many, including me. But you don’t have to break the bank to enjoy the joys of the season and make great memories. Use the tips above to avoid overspending this year and start the new year on a strong financial footing.

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