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10 Ways To Lower Your Christmas Budget

10 Ways To Lower Your Christmas Budget

christmas budget

What’s the average amount of money you spend during the holiday season? 

You’ll be surprised to learn people spend an average of $1,496 each holiday season as of 2019. 

This includes the cost of entertaining guests, decorations, and gifts.

Since the 2020pandemic, everyone’s been hit hard with money trouble.  While the Christmas season is always a celebration, you may need to cut back on your spending this year. 

Here are 10 ways to lower your Christmas budget this year and save BIG!

Disclosure: Bear in mind that some of the links in this post are affiliate links and if you click on them to make a purchase I will earn a commission. Keep in mind that I link these companies and their products because of their quality and not because of the commission I receive from your purchases. The decision is yours, and whether or not you decide to buy something is completely up to you.

This is how to lower your Christmas budget and save BIG!

Set a gift limit

Most of your Christmas budget is probably spent on gifts for other people. 

But ask yourself “How many gifts do I have each person in my immediate family?” 

Having many gifts for each member of your family soon adds up and soaks up your budget. 

While you love your kids and your spouse, can you afford to give them 10 presents each?  Probably not.

Instead, try the 4 gift rule!  Each member of your family gets four gifts. 

Here’s how it works:

Gift 1: Something they need

Gift 2: Something they want

Gift 3: Something they can read

Gift 4: Something they can wear

These four gifts not only minimize the excess presents we sometimes don’t need, but still gives people the necessities and entertainment they need and want.

Create a budget

A budget is everything!  Since the national average for Christmas spending is around $1,500, you may want to come under that number. 

However, every Christmas budget is different depending on your money situation. 

You can either sit down and discuss with your spouse an acceptable amount of money you want to spend on Christmas or start saving early!

It doesn’t matter how you do it as long as you stick the to set amount.  

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Take advantage of Cyber Monday

I love Cyber Monday!  I don’t have the leave my house and I shop online for all the Christmas gifts I need. 

Cyber Monday is perfect for anyone who’s not into Black Friday deals. 

While you may be asking yourself if Cyber Monday is worth it, the most you can do is check out the deals on your most beloved go-to websites and see for yourself.

Typically, companies will have Cyber Monday deals sitewide and will often let you combine coupons/discounts at checkout to lower your overall Christmas budget more!

Reuse old Christmas decorations

If you’re a Christmas lover who adores decorating for the holidays, it’s tough not buying new decorations to add to your collection every year. 

However, skipping on buying new pieces is one of the fastest ways to save money during the holiday season. 

Just dig out your Christmas decor boxes out of the attic or garage and decorate the inside and outside of your home with whatever you already have.  

This also includes skipping out on traditional ornament pieces like collectable Christmas figurines or specialty ornaments. 

Those small items you only display one to three months out of the year tend to increase your overall budget because you forget to factor them into your expenses.

Send Christmas cards instead of gifts

Have long distance relative you only talk to once or twice a year?  Why not send them a Christmas card with a thoughtful note compared to a gift? 

Although there may be some hurt feelings, sometimes sacrifices need to be made in order to save money this holiday season because your Christmas budget is extra tight. 

If you feel guilty you can always opt for sending long-distance relatives a small gift next year when you feel you have a more flexible budget.

Find online coupons

When you’re checking out with an online order, do you ever see a space to type in an online code or promo code? 

While you do have to hunt for online codes, it’s well worth it and could help you save hundreds this year! 

Whether it’s 15% or 50% of an item, it is worth it to try some online coupon codes to see if they will save you money. 

Here are some awesome sites to get online coupons from:


Do you have a gift someone gave you that you never opened because you despise it?  Why not regift it?  You never know…  Your regift can be the best present someone get’s this Christmas!

DIY gifts

Some people do hate DIY or homemade gifts.  Personally, I love them! 

It not only shows someone’s talent for making something from scratch, but let’s you know it was made from the heart especially for you. 

You don’t have to paint every person on your list a masterpiece, instead give some of the following DIY gifts a try this Christmas:

  • Homemade cookies
  • Jarred spice blends
  • Infused salts
  • Christmas candies
  • DIY clay ornaments
  • Hot chocolate mix with mug
  • Cookie mix in a jar
  • Baby food jar ornaments
  • Crochet or knitted throw blanket
  • Homemade Christmas wreath
  • Bath bombs

Although it may take time to do a DIY gift, many gifts like jarred cookie mix with recipe can be given to multiple people on your list for a fraction of the cost of buying a present.

Skip the stockings

You can still hang the stockings for decorations and still stuff them, but don’t go overboard with what’s in them. 

Even though they have to be small gifts, some small gifts like jewelry come with a big price tag! 

Why not just stocking stuff with simple items like small candies, cookies, or oranges? 

Not filling stockings with small presents will allow you to stick to the Christmas budget you’ve set for your family.

Share the cost of holiday meals

Hosting holiday meals like Thanksgiving and Christmas dinner are exhausting! 

The meal planning, food preparations, cooking, and praying your family will enjoy leaves you mentally and physically drained. 

Plus, the cost of the entire meal can add up quickly! 

Christmas food shopping needs to be factored into your overall holiday budget and sometimes people can forget this and end up over their budget.  

Don’t make that mistake!  Set a reasonable budget for your holiday meal. 

Then talk to your holiday guests to see if they can contribute as well. 

This will lower the amount of holiday stress, cooking, and budget for you! 

The best way to address the subject of food is to say it’s a potluck Christmas dinner. 

Have your each of your family and friends make their favorite side dish or dessert! 

If everyone contributes you will have plenty of food to go around, plus less money you have to spend!

Final Thoughts On Your Christmas Budget

Setting and sticking to a Christmas budget is hard.  But sometimes there’s no choice. 

While Christmas is a beautiful holiday for so many reasons, there’s no need to go into debt! 

It is possible to set a budget and stick with it. 

Many times people forget the spirit of Christmas and they only focus on how much they spend and buy for their loved ones.  

The best Christmas’s you look back on are the ones with the best memories with family and friends, not the presents you received!

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