The holiday season loses its cheer when finances are strained.
This year’s been challenging on multiple fronts—financially, emotionally, and in some cases, physically. Consequently, the festive season, with its array of cheerful obligations—like buying gifts for numerous friends and family members and taking time off work—can turn into an additional source of pressure during what should be a time for joy and relaxation. Tired Americans are saying they’ve had enough of the holiday demands.
A recent survey by CNBC-Morning Consult revealed that 76% of U.S. citizens intend to reduce their spending this holiday season. Moreover, the Associated Press (AP) noted that spending growth slowed in October, just before the holiday rush. This trend isn’t limited to America alone; reports indicate that Dutch consumers are spending less, and Canadians are cutting back on holiday travel and gift purchases.
Some businesses are attempting to lessen the financial strain that the festive season brings, recognizing the challenging times we are facing. For instance, delivery services are looking to offset decreased spending by lowering shipping fees for companies.
Strategies to Cut Costs This Holiday Season
It’s important to note that it’s not solely about the presents, as highlighted by Olivia Howell, a single mother and entrepreneur at Fresh Starts Registry. “The holidays can be complicated, especially when you have occasions that involve gift exchanges, which often coincide with other expenses like purchasing winter attire for my kids or attending family gatherings and preparing gifts for teachers,” she explains.
Similar to other entrepreneurs, Howell generally redirects her earnings into her business, necessitating prudent budget management. Yet she emphasizes that her children deserve to create magical memories. “I need to factor in holiday costs, as I want my kids to enjoy a delightful childhood,” she asserts.
To alleviate the guilt that frequently accompanies the financial pressures of the holidays, Howell resorts to thrift shopping for items that can be gifted or utilized for decoration purposes.
“Thrifting is beneficial for the planet, promoting sustainability by allowing us to repurpose and recycle goods, and it’s a fun activity,” Howell points out. “We should remove the shame and stigma around wearing or utilizing thrifted or consigned clothing and embrace it as a positive for everyone involved!”
Here are some additional strategies to save money this holiday season, both professionally and personally.
1. Collaborate with Colleagues for a Thoughtful Group Gift
If your boss has been complaining about back pain throughout the year, consider pooling resources with a few coworkers to purchase an ergonomic chair, preventing any one person from having to spend too much. You might even enjoy a happier boss as a result.
You can focus on other office-related items that would make great group gifts, or you could choose something personal based on a specific interest or hobby of your boss. A straightforward gift card to their favorite family restaurant is another simple solution that’s easy to share with others.
2. Initiate Difficult Conversations
If your family typically exchanges multiple gifts amongst many relatives, it’s time to have an honest discussion—without feeling guilty.
<p“I’m approaching my holiday spending more consciously this year by having transparent dialogues about expectations with everyone. For instance, my siblings and parents really don’t need commercially bought gifts, and the same goes for my friends,” Howell shares. Instead, she plans to create watercolor cards as thoughtful gifts.
Other helpful discussions might include:
- business leaders encouraging team members to express appreciation in writing rather than exchanging gifts
- talking with your children about giving meaningful presents or creating experiences
- streamlining or cutting out extras that add up: for example, baking cookies for the delivery person instead of purchasing a gift card
3. Redefine What Holiday Magic Means
Where do we get these oversized expectations that come with high price tags? Howell points out, “Society often conveys that the holiday season must be an enchanting and magnificent time, making it frustrating when you want to do everything and buy everything while also managing necessary expenses like medical bills, groceries, and health insurance.”
By reassessing what holiday magic means and opting to spend quality time together instead of participating in costly activities—like having movie nights at home with favorite snacks—you may rediscover your holiday spirit.
4. Resolve Not to Start January Burdened by Credit Card Debt
There’s a reason credit card companies thrive during the festive season. In fact, 38% of Americans expect to carry holiday debt into the new year. However, you don’t have to become part of that cycle.
“Using short-term loans to cover regular expenses without a clear repayment plan can lead people into a damaging cycle of debt that’s hard to break,” warns Andrew Leavitt from Pinnacle Lending Group. “This behavior creates significant revenue for credit card companies, as customers end up paying off those debts for years.”
You might also consider giving gifts that don’t demand immediate payment, such as zero-interest items or planning a summer vacation that can be saved for over the next six months, provided you have a concrete plan.
5. Forgo the Holiday Card—Social Media Suffices
The tradition of sending holiday cards originates from a time before social media. Are you really providing anything new by spending, at times, hundreds of dollars to create and send holiday greetings? Instead, consider posting heartfelt holiday “cards” and messages on your preferred social media platforms.
“I’ll be sending holiday cards only to a select few who truly supported me this year. People see my kids all the time on Facebook; a holiday card isn’t necessary. Those costs can add up quickly,” Howell recounts. “Experiencing financial strain is tough, and it’s perfectly acceptable to tone it down some years.”
