It’s a great feeling when the halls are decked and you’re still on budget. And it’s an even better feeling when you know your holiday spending aligns with what you care about.

As you celebrate the season, use these 12 days of holiday savings ideas to help you stay on track with your financial goals, spend with purpose, and save a little money. 

2025 holiday spending is predicted to increase 3.5% from 2024, which posted a record-breaking $994.1 billion in sales.^{Disclosure 2,Disclosure 3} How do you prepare for all of that holiday spending? Since gifts and experiences can add up quickly, start by creating a holiday budget based on your unique values, which can help you keep your spending in check throughout the season. 

Your budget should include details about the gifts you plan to buy, travel expenses, food costs, decorations, and any plans for charitable donations. Once your budget aligns with what matters most to you, it can help you spend in meaningful ways during the holidays

There are many ways to trim the expensive holiday decor and installations from your budget:

Invite friends and family over and make a weekend of getting crafty. Search DIY hashtags on social media for craft ideas and inspiration. 

For example, a good artificial Christmas tree may be a large upfront expense, but after a few years it can pay off.

For those big-ticket items, consider waiting to buy them in January, when holiday decorations are the most discounted.

Seek out secondhand items online and at local marketplaces, or host a decor swap with friends.

Chances are your halls are decked with a lot of lights, which require energy. Opt for LED light strands, which last longer, can be reused for years, and require less electricity than conventional bulbs. 

You’re at the checkout and are offered a one-time discount of 20% if you open a store credit card. Savings are savings, right? Maybe not. These cards can carry high interest rates and pricey fees—plus, they can enable overspending when the urge strikes to get just one more present.

Read more: 5 common credit score mistakes you can easily avoid

Opening a new credit card can also affect your credit score. But if your score is in a good place (aim for 720 or higher) and you’re interested in getting a new credit card to cash in on rewards, consider a card that offers points or cash back on everyday expenses.

If you’re able to use the card responsibly and pay off the balance every month, you could accumulate rewards throughout the year, then use them as part of next year’s holiday budget. 

Is there anything better than the smell of fresh cookies baking during the holidays?

With cooking being a part of many holiday traditions and grocery prices rising in the past year (a dozen eggs for how much?!), you may be spending a good portion of your budget on food. Think about substitutions you can make to your menu to save money. Choose (or ask AI to suggest) recipes you can make with items you already have in your pantry.

Factor in smaller gatherings, too. Adjust recipes to reduce food (and money) waste. For example, you could consider opting for a roasted chicken instead of a whole turkey.

Your holiday shopping should start with some research. Look online to compare the cost of the same item at different retailers. If your first choice isn’t available, check for comparable gift alternatives.

A few other ways to find discounts and deals include:

• Shopping Black Friday and Cyber Monday sales
• Special points or cash-back offers from your credit cards or bank
• Browser extensions that compare prices, provide price alerts, and apply coupons
• Digital or paper coupons from your grocery store or other retailers—or from the manufacturers themselves
• Signing up for email from your favorite retailers to possibly score discounts on things you were already planning to buy

Keep in mind you may have to join a loyalty program, download an app, and opt in to privacy terms to use digital coupons and sign up for email promotions. And not all discounts are created equal. Some retailers inflate prices and then mark down products to simulate a sale. Even when something is on sale, check the unit price on your grocery store price tags to avoid falling victim to “shrinkflation.”

If one of your values is supporting your local community, searching for gifts from local and small businesses may feel good and help you find some deals, too. 

Some of us live for holiday hosting. By the time the bar is stocked and the charcuterie board designed, you might think to yourself—“Did I really need to buy eight types of fancy cheese?” Enjoy your holiday party by buddying up with a co-host. Splitting costs and hosting duties can help you save money on holiday entertaining.

Another way to save money on a holiday gathering is to host a potluck. Create the atmosphere for a smaller number of friends and family to gather, and let everyone pitch in. And if you’ve been invited to a potluck yourself, plan to bring a dish that’s within your budget. 

“Studies show that time spent with people is more important than money spent,” says Brian Ford, head of financial wellness at Truist. Save presents for the kids and give the adults in your life your uninterrupted presence.

Make yourself available for playing games, building snowmen, watching movies, or volunteering together. Being present can also mean a good catch-up video call or playing a virtual game with friends or family who can’t be there in person.

When connecting this way, be sure to set time aside for just that, so there aren’t distractions pulling your attention away. Spending time and attention—not money—can make for healthier relationships and a happier season.

Focus on core family members and close friends for your holiday gift list. If that list is still too long for your budget, propose a holiday gift exchange, Secret Santa style. Draw names from a hat and give one meaningful present to one person.

Don't forget to set a budget for the gift swap, so the financial expectations are the same for everyone. Plan to exchange gifts over cider or hot cocoa, whether in person or virtually. 

Making memories together can often bring more lasting joy than store-bought items. Consider gifting an experience rather than a tangible item. Inexpensive ideas include planning a Christmas scavenger hunt for the kids in your family or taking loved ones for a hike or picnic at one of your favorite outdoor spots.

Or, you can gift experiences within a predetermined budget—like gifting tickets for a pottery class, a day at the museum, national park passes, or a Broadway show. If you have a bigger budget, you could consider even bigger experiences—like renting a beach house over the summer for your whole family. 

Doing something for someone else during the holiday season can help make you feel good. It doesn’t have to involve money, either. Small gestures like writing a letter to a veteran, walking dogs at a local animal shelter, or simply giving someone a compliment can go a long way. Many organizations may be hosting holiday supply drives or other donation events so they can continue their missions.

If you do want to donate money to others this season, give to a cause that is close to your heart or—even better—close to home. Being an active part of making your community better is sure to inspire cheer. And this is a great way to set an example and make memories as a family, kids included.

Give yourself a gift, too, even if it’s something small. If you’re buying something big for yourself, consider if you’ll use, cherish, or remember the present come February or March—or beyond. It’s a good practice to treat yourself as long as you’re staying within your budget and caring for your financial and mental well-being.

Want to be even more prepared for holiday shopping next year? Starting now, save a little each week or month for the next holiday season. Pay attention to how much you spend this year, too, to give yourself a clearer picture of how much you need to save. The sooner you start setting money aside for it, the better you can feel going into the holiday season.