If you find yourself in this predicament, fear not! You can celebrate with gifts your family will love using practical, wallet-friendly strategies. Let’s unwrap the secrets to a festive Christmas that won’t break the bank.

What is a realistic Christmas budget? It’s one that you can afford, hands down. Some create their gift budget by adding up how much they want to spend on each person in their lives. But for those on a tight budget with everyday expenses, this method can easily cause overspending, throwing you off your financial plan for the new year ahead.

Instead, calculate the total amount you can spend on Christmas that fits alongside your everyday expenses and will not increase your debt. Looking for support in managing your money? Personal finance apps can offer a convenient way to track your money, while the expertise of financial planners adds that personalized touch to guide you toward your money goals.

Once you have your total holiday budget, divide it into different “buckets” to form your gift budget, holiday decorating budget, and so on. Now, with your gift budget, you can assign estimated spending for each person you’d like to shop for. To stretch your budget, let's look at gift-giving strategies that help you save.

You’re likely not the only one trying to save on Christmas gifts. Try to recruit others in your circle to save together. Check in with your partner or spouse about possibly forgoing gifts for thoughtful cards this year. If you have a large family, ask if you can draw names to limit gift-giving to buying for one person, or agree to just buy for the kids.?

Or play the white elephant gift exchange. It’s a game where participants exchange inexpensive, humorous, and sometimes impractical gifts. The goal is often to entertain rather than to gain something of value. It makes for a fun time with family, friends, or coworkers!

In the whirlwind of holiday excitement, it’s tempting to splurge on gifts all at once. However, consider spreading your purchases over several months and weeks before Christmas. (If you start early enough, you could even set up a savings account at your bank or neobank dedicated to your Christmas budget.)

A longer timeline lets you think about sizable purchases (so you won’t impulse buy) and monitor desired items so you can buy them when they go on sale as the season progresses.?

Tap into your creative side by making personalized gifts for your loved ones. Handmade presents, such as candles, scarves, or ornaments, carry a unique touch but also reflect thought and effort. Several social media apps and sites offer “how-to” videos and demonstrations for making “budget-friendly DIY Christmas gifts.” Just be sure you enjoy making them, because your family and friends may expect them each year if they’re a hit.

One of my favorite gifts to receive is my stepmom’s Christmas cookies, and I’m known for making personalized calendars for family every year. Your custom creations are heartfelt, and the cost of the materials used to make them is typically lower than store-bought items, making them excellent gift alternatives.?

Sometimes, the most meaningful gifts aren’t wrapped in shiny paper. Think about the people on your list and if they would love the benefit of your time and skills as a present. Whether it’s babysitting for a busy friend, helping with household chores, or providing a talent you possess, these gifts showcase your thoughtfulness without denting your wallet. Personalize it by making sure your gift is the right fit for the person. Your grandmother may not want to use your keen photography eye for a free photo shoot, but she may be thrilled to have you clean her basement.

Perhaps in place of a gifted item, you enjoy an experience together. There are holiday events, like tree lightings, or driving around looking at lights and decorations while drinking hot cocoa. Or do something good for the soul during Christmas, by volunteering at a soup kitchen.?

Feel free to make your own events too. A popular option is to host a holiday cookie exchange. Everyone bakes three types of cookies, swaps them at the exchange, and leaves with a happy assortment of sweets. You’ll be able to check the box on gifts for many friends while limiting spending to ingredients and to-go containers. That’s some major bang for your buck!

Embrace the art of smart shopping to get the best deals this holiday season. Look for discounts, coupons, and offers via cashback apps. Search different retailer profile pages on Trustpilot to see what types of deals other customers get on gifts and the customer service experience.?

Scope out discount stores and thrift stores for budget-friendly finds. Fish through your junk drawer and pull out all of the gift cards you haven’t used yet. Add those to your budget. And if you stumble upon a gift you received that’s just been sitting in its box, consider regifting it. It’s OK if you genuinely feel that the person you’re giving it to will value it.

Enjoy giving gifts that bring your loved ones joy and keep you on budget this Christmas.

Visit our holiday hub for more ways to save.?

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