How to Do Holiday Shopping on a Budget

Last Updated: March 5, 2023 References

The holidays make up the biggest gift-buying season of the year, and as fun as holiday shopping can be, it can get stressful when you’re on a budget. Gift prices might be high, but you can still find great presents without breaking the bank this holiday season by creating a budget and curbing your shopping spree tendencies in the store.

Method 1

Method 1 of 3:

Creating Your Budget

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Set a spending limit to start setting up your shopping budget. Take a look at your bank account and decide how much you’ll be able to set aside for holiday shopping this year. Write down any outside expenses, calculate how much income you’ll make during that time, and see how much you’ll have left over to spend on gifts.^{[1]
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- Outside costs might include rent, groceries, and travel and commute payments.
- If you plan ahead, you can start setting money aside for holiday shopping well before the holiday season gets going. Aim to start saving in the summer to have plenty of shopping funds by November and December.
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Factor in other holiday expenses to get a full picture of your spending. Will your holiday season include extra costs, other than gifts? Think about whether you’ll need to spend money on sending holiday cards, buying wrapping paper, decorating your house, or travelling for the holidays.^{[2]
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- This will give you a more realistic sense of how much money you’ll be spending during the holiday season, beyond the normal, everyday expenses you have.
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Make a list of everyone you need to buy a gift for. Think of all the family members and friends you’ll need to buy gifts for, then list 1-2 gift ideas for each person. Having a shopping list will keep you organized and on track when you head out to start buying.^{[3]
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- You may also want to include people who’ll receive holiday tips, like your babysitter, mail carrier, or doorman.
- Write your list down on paper or on your phone. Having it handy when you’re out shopping will help you avoid getting distracted by other gifts, which can take you over your budget.
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Do some research and decide on an amount for each gift. Look at online retailers, in stores, and on store websites to see how much you’ll need to spend for each gift you want to buy. It’s important to do this research before you start buying. You’re essentially setting a spending limit for each gift and person, which will keep you within your budget.^{[4]
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- Factor in sales tax as well. Look up the percentage in your state and calculate it for each gift to get the most accurate projection.
- Don’t feel bad if you’re spending more money on some people than others. It’s normal to give more expensive gifts to people you’re closer to than acquaintances.
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Factor in shipping if you’re buying online. If you’re planning to buy gifts online, you’ll typically need to pay extra costs for shipping and handling, which can vary depending on the website and where the product is shipping from. To see how much your shipping costs will be, add the items to your cart and go to checkout, but don’t finalize the purchase. Note down the shipping costs and add them to your spending projection for that gift or person.
- Some websites will give you free shipping if you go over a certain dollar amount. If you end up under the magic number, decide whether it makes more sense to add another few items to your cart, or if you’ll save more money by simply paying the shipping costs.
- Some stores will also have free shipping promotions around the holidays, including free shipping days. Keep an eye out for these promotions—the retailer might announce them a few days beforehand or on the day of.
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Revise your gift list as necessary. Once you’ve created a general budget for each person’s gifts, add up those spending projections to get your total holiday shopping costs. Then, compare those costs to the spending limit you determined earlier. If your costs are higher than your limit, you’ll need to find places to cut.

If you need to cut costs…

Give a similar gift that’s cheaper. Instead of buying an appliance for someone who loves to cook, for example, you could give them a cookbook for a less expensive but still personalized gift.

Adjust your budgeting in other areas. For example, you could save money on food by cooking your own meals instead of going out to eat, and save money on gas by taking public transportation.

Method 2

Method 2 of 3:

Limiting Spending While You Shop

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Stick to your shopping list and don’t get tempted by other items. Once you get in the store, it’s easy to become distracted by the big displays, sales, and products set out for the holidays. Stay as focused as you can by only going to aisles and parts of the store where your shopping list items are. Try not to wander around, and if you find yourself getting sidetracked or tempted by a product that’s not on your list.

Tip: If you find yourself getting sidetracked or tempted by a product that’s not on your list, leave the store for a few minutes. Getting away from the chaos of the store even for a couple of minutes can help you refocus.
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Pay with cash as much as you can in stores. It’s easy to overspend when you use credit and debit cards—sometimes it barely even feels like you’re spending money! To avoid this problem, buy as many gifts with cash as you can. You’ll have a more accurate sense of how much you’re paying, and be able to stop yourself when you’re approaching your spending limit.^{[5]
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- If overspending is a big problem, try going to the ATM right before you head into a store. Withdraw enough cash to purchase the gift(s) you’re going there for, and that’s it.
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Check and compare online retailers for great deals. Many online sellers, like Amazon and eBay, offer a huge variety of products for lower prices than you can find them in-store. If you’re shopping online, make sure to check several retailers to make sure you’re getting the best possible price.^{[6]
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- You may also want to compare online sellers against brick and mortar stores. Occasionally, the stores will sell the items at a cheaper price.
- Only buy from legitimate retailers and stores that you’re familiar with. Scammers abound during the holidays, so now isn’t the time to try a new site, even if their prices are lower.
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Consider making your own gifts when you can. Creating and giving handmade gifts can add a personalized touch and will often save you money as well. If you’re running out of funds, look up some easy DIY holiday gift tutorials online and choose a few that your loved ones will appreciate.
- Try making jewelry, bath bombs, ornaments, or candles.
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Shop alone so other people can’t pressure you to spend. Going shopping with friends and family can be fun, but you might also find yourself buying unnecessary things when they encourage it. You can take all the time (and breaks) that you need and it’ll be easier to stick to your list, only going into the stores and aisles that you need to.
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Shop early to limit your stress. Starting your holiday shopping in November or even October will help you cut down on costs and stress when December comes around. You won’t have to spend extra money on rush shipping or be forced to look for alternatives if your gifts go out of stock. You can also catch good deals by looking before the holiday season.
- You can even shop for gifts all year round. By the time the holiday season starts, you may not even need to go shopping!
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Go shopping for gifts when you’re feeling calm to avoid emotional spending. If you go shopping when you’re feeling stressed, exhausted, or upset, you’re likely to spend more money on gifts that aren’t on your list and on things you don’t need. Try to pick up on the emotional triggers that send you reaching for your credit card and find other ways to curb them, such as talking with a friend or exercising. Head to the store when you’re feeling calm and in control.^{[7]
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- You can also try the 24-hour rule. If you find something that would be a perfect gift, but it’s not on your list, wait 24 hours before buying it. Waiting that extra time can help you realize that the gift isn’t necessary or worth the extra cost.

Method 3

Method 3 of 3:

Finding Deals and Cutting Costs

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Take advantage of Black Friday and Cyber Monday sales. The weekend after Thanksgiving, from Black Friday through Cyber Monday, is famous for having great deals. Some sales will be available online, whereas others are only for in-store purchases, and many of them aren’t announced until the day of. Look up the retailers that you want to buy from and see what kind of deals they’re offering.
- If the deals are good, this is a great chance for you to save money and finish your holiday shopping early.
- Don’t worry if you miss this gift-buying window. Some retailers offer holiday sales through December as well.
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Look for discount codes for shops and online retailers. Save up any coupons you get in the mail or from stores and catalogues. Before going shopping, comb through your stash and see if there are any discounts you can use. If you’re shopping online, you can do the same thing by quickly googling coupon codes for the stores you’re looking at.^{[8]
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Use cashback credit cards or points to shop. You can use credit card rewards and points to buy gift cards or merchandise from certain retailers. Log onto your credit card’s website to see if you can spend your points on gifts.^{[9]
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- You can also use cards that give you cash back on your purchases.
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Check for old gift cards you can use to buy gifts. Go through your wallet and any other card stashes to see if you have any gift cards you can use. Pull them out and use them to save money while buying gifts for friends and family, or cash them in at a website like Raise, which lets you sell unneeded gift cards.^{[10]
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Tip: If you have a gift card that you know you won't use in the future, consider giving it as a gift to someone else. Make sure it's at a normal dollar amount, like $15 or $20, so the recipient doesn't know you're regifting it.
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Shop in thrift stores for more affordable prices.^{[11]
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Expert Source

Stephanie Fajardo
Professional Stylist
Expert Interview. 30 April 2019.} Don’t count out thrift shops and dollar stores when you’re going holiday shopping. You can buy interesting, unique clothes and accessories at a thrift store, and shop for small, inexpensive stocking stuffers at dollar or discount stores. Duck inside to see what they have in stock, write down a few gift possibilities, and see if you can substitute them for more expensive gifts on your list.

Expert Q&A
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Question

How can I avoid overspending during the holidays?

Stephanie Fajardo
Professional Stylist
Stephanie Fajardo is a Personal Stylist based in Portland, Oregon. Stephanie has over 17 years of styling experience in personal consulting, television, photography, and film shoots. Her work has been featured in Esquire Magazine and Portland Fashion Week.

Stephanie Fajardo

Professional Stylist

Expert Answer

Support wikiHow by unlocking this expert answer.

Try looking for gifts at thrift stores. You can usually find designer or quality items for a fraction of the price.
Question

How can I resist the urge to shop all the time?

Iforgotmyoldpass

Community Answer

Set aside some money each month and tell yourself that you can’t use that money. Alternatively, every time you want to buy something, wait the next day so that you can decide if it was just in the moment or if you really need it.