8 Major Money-Saving Tips During The Holiday Season, From The Pros

The holidays are right around the corner. If you're like most people, you're wondering what the heck happened to this year—and may not be prepared for the holiday season financially. 

The stats are sobering. According to Lending Tree's survey of 2022 holiday spending, among the people they polled, the average debt reached $1,549, up 24% from 2021. Furthermore, 37% of those taking on debt expect to take five months or more to pay it off. You don't want this kind of holiday hangover.

Your first order of business is figuring out how much you can afford during the season, says Michelle Griffith, a senior wealth adviser with Citi Personal Wealth Management.

Don't make the mistake of only thinking about how much you will spend on gifts. Your holiday budget also includes decorations, travel expenses, cards and postage, groceries, holiday outfits, and more.

If you don't already have the amount you need, start saving money now. Sure, ideally you should have started saving months ago, but whatever you sock away over the next few weeks will help. Keep that money in a separate account just for holiday spending.

Beyond sticking to your list, what else can help control the urge to splurge and help you save? There's an app for everything.

"Apps like Christmas Gift List or Christmas Gift List Tracker help you stick to your budget. Once you set the limits per person, the apps notify you when you've hit them," says Shinobu Hindert, a certified financial planner and author of Investing Is Your Superpower.

Sign up for alerts from your favorite retailers. You'll get notifications about sales. Find great deals on gift cards on sites like Raise and Card Cash, advises Hindert. 

Choose cash over cards.

"What good are credit card rewards when about a third of us never redeem them?" says Arroyo.

See if you can offset your travel, food, or gift-giving costs using points earned through credit card rewards or loyalty programs. Maybe those miles you've been hoarding can help pay for a plane ticket to your in-laws, or your credit card points can cover the cost of co-worker gift cards.

You know you should think outside the box about gifts, exploring all options, be it making or baking something or hitting up thrift stores and online marketplaces.

But keep the creativity going. If you want to host a fete, there's no shame in sharing the load; make it a potluck. "Consider gifting 'experiences' rather than expensive store-bought items," says Tyler Meyer, founder of Retire to Abundance.