During the winter holidays, we’re all about decking the halls, visiting loved ones, and finding the perfect gift for everyone on your list. But after all the festivity dies down and normal life resumes, you may notice that your wallet didn’t enjoy the holiday season quite as much as you did.
From traveling and gift-giving to decorations and dinner parties, special holiday moments can quickly add up—and linger. In fact, 46% of Americans still carry debt from last year's holiday season.
Additionally:
- Americans have spent more each holiday season since 2010 and are expected to again spend even more in 2024
- As of 2024, the average American plans to spend $925 (on average) on holiday gifts and $2,330 (on average) for holiday travel
But the good news is, you don’t have to. We’ve put together 8 budgeting tips for the holidays that will let you enjoy the season to the max—without feeling the pinch in the New Year.
1. Plan ahead or use a holiday budget calculator
Our #1 holiday budgeting tip is simple: decide how much you can afford to spend this year before the shopping season begins.
Of course, how much you choose to spend is a personal decision, but financial planners generally recommend spending no more than 1 to 1.5% of your annual income during the holidays. For example, if your annual take-home pay is $75,000, your holiday spending shouldn’t exceed $750 to $1,125.
To make it even simpler, try using an online holiday budget calculator. These tools take your income, expenses, and other factors into account to help you set a realistic budget for the season.
2. Make a game plan for Black Friday and Cyber Monday
Nobody knows how to do the holidays better than Santa, so take a cue from the big guy: Make your list and check it twice before you head out (or open your web browser) for the biggest shopping days of the year. Why?
Shopping without a clear plan is a recipe for impulse buying.
While you don’t have to decide who’s naughty and who’s nice, you should break your list down into two groups:
- Close friends and family – This group will include all those folks who will receive a present of some sort, whether it’s handmade, store-bought, or a gift card.
- Extended family and acquaintances – For this group, plan to send greeting cards instead of gifts. Ecards work, but consider taking the time to send paper cards—a handwritten personal message means a lot in today’s digital age.
A shopping list will also help you with holiday budgeting—it will allow you to compare prices between retailers, find specific deals, and be more efficient with your trips.
Additionally, know when to wait for deals—some items are cheaper during Black Friday, but others are worth waiting for a different time.
For more advice on executing the perfect holiday shopping strategy, check out our Black Friday and Cyber Monday tips here.
3. Set a budget per person
Now that you have your list of giftees, use the budget you calculated in step one to determine an appropriate dollar amount per person that will keep you from exceeding your holiday budget.
Don’t forget to account for non-gift spending too, such as:
- Travel costs
- Food and beverages for holiday meals, parties, etc.
- Decorations
- Special events (concerts, movies, fundraisers, etc.)
4. Use RaiseRight gift cards
To do more with your dollars, buy and use gift cards from RaiseRight, a digital fundraising platform that offsets the cost of school, sports and music programs, or donations to your church or nonprofit. Shop with confidence, knowing that a percentage of your budget is always going back to your favorite cause or organization.
Using RaiseRight gift cards is a great way to avoid going over your holiday budget while lowering the costs of other expenses. Once you’ve set a per-person budget in step three, purchase a gift card from RaiseRight with the appropriate denomination. You can also give the gift card as a present or include it in your cards or stockings.
Learn more about how gift card fundraising works. Or, explore our latest Gift Guide to search brands, discover additional earning tips, and more.
5. Shop online, compare prices, and get the best deals
If you're shopping online, you have the luxury of comparing prices by store or determining specific product availability (without any pressure from an in-store salesperson).
Once you find the best price or match for your desired gift, you can complete your purchase by shopping online through RaiseRight. You'll earn extra money back, leaving some room in your holiday budget.
Pro-tip: Earn extra when you shop online and use a gift card from RaiseRight for payment. Cheers to more savings and earnings for you!
6. Schedule shopping trips
Plan your shopping trips in advance to avoid the last-minute rush. This will also help you capitalize on store-specific holiday sales. Remember that local merchants often have special offers and holiday discounts to compete with online retailers, so be sure to check your area for upcoming sales and events.
7. Price check on your phone when you shop in person
If you prefer to shop in person, comparing prices on your phone while shopping in stores is a great way to ensure you don’t overspend. What can look like a good sale price in stores might still be marked up over the online price. (But remember also to take shipping costs and time into account.)
8. Take advantage of price-matching policies
While you’re comparison shopping, don’t forget that most major retailers have price match guarantees. So, if you find a better price down the block or online, don’t hesitate to ask if another store will match it.
A few tips to keep in mind:
- Many stores will price match when asked, even if it’s not a policy they promote.
- If the price is already steeply discounted for a sale or clearance, the store is less likely to mark it down further.
- It is absolutely necessary to have proof of the competitor’s price, such as a sales flyer or online coupon saved to your phone.
Give gifts that give back
With these holiday budgeting tips in your back pocket, you can enjoy the holidays this season with less stress and a healthier bank account come January. After all, it’s the season for spending time with loved ones—not overspending on gifts and trinkets.
Fortunately, RaiseRight can help you keep your holiday spending on track while still shopping at all your favorite brands, restaurants, grocery stores, and more. Best of all, you’ll fund your favorite cause with every cent you spend.
Learn more about how it works, then get started today for free!
