Christmas on a budget doesn’t have to be stressful or boring like you might think. While I knew that we would be doing Christmas on a budget this year, I have been looking forward to Christmas since the summertime. Inexpensive doesn’t mean uneventful or unexciting.
This post is all about gifting, decorating, and enjoying every bit of Christmas on a budget. I promise, it truly is possible.
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Christmas on a budget
1. Set a budget for each family member and track your spending
When it comes to setting your Christmas budget, your first step is to stop worrying about what your friends or people on the internet are spending on Christmas this year. Look at your income, your budget, maybe grab a Christmas budget planner, and determine what is right for your family. That’s all that matters.
Then once you set your budget, you MUST track your spending. Without tracking as you go, I guarantee you will go outside your budget. Grab a special sheet to track it or simply write it down on your phone as you go. Just make sure you write down everything as you go so nothing gets forgotten.
2. Come up with a formula for what you will buy
This sounds super fancy but what I mean by a formula is something along the lines of, “something to want, something you need, something to wear, and something to read.” This is the classic example but you can come up with your own formula. For example, I like to do a Christmas ornament, a pair of Christmas pajamas, a box of thrifted books, and three things they’ve either been asking for or I know they will love. This formula helps me keep in our budget and also makes it much simpler to decide what I am buying for each family member.
3. Don’t hesitate to buy second hand
I’ll always try finding the toys and books I want to get my kids on Facebook Marketplace or even second hand stores. There is no shame in buying things second hand, especially toys! I actually got my three year old a gift this year on Facebook marketplace for $20 and it’s $80 on Amazon! He’s been asking for it for months and I’m so excited to give it to him. Plus, it’s even more fun for me because I stayed in budget!
4. Buy all year round & keep a running list
All through the year, when my kids ask for a toy or treat in the store, I ask them if they’d like me to add it to their wish list. Then I keep a running list on my phone of all the different things they’ve asked for and liked. Sometimes I’ll go back and buy it right away and sometimes I wait for deals later in the year. But being willing to buy all year will open you up to tons more sales and opportunities! Plus, this hack is super helpful when relatives ask for ideas!
5. Wait till after Thanksgiving for pajamas & decor
Just about everything Christmas related goes on sale around Thanksgiving. I especially love going to Hobby Lobby when everything Christmas is 50% off! This is when I look for Christmas stockings, ornaments, and decorations.
And if you are a fan of family Christmas pajamas, Thanksgiving time is when they all get super cheap! I just bought matching Christmas pajamas for our family and the kids’ pajamas both cost $5 and mine and my husbands were only $9! You can’t really beat that!
6. Fill their stockings at Dollar Tree
Dollar Tree has massively stepped up their game over the years. I got my three year old name brand Monster Jam monster trucks for $1.25 a piece! Trust me, you definitely want to check out this post for another 25 Dollar Tree Stocking Stuffers. You’ll be shocked what you will find there.
7. Wait as long as you can to buy your tree (If you buy real trees)
While I too love putting my Christmas tree up super duper early, it’s wild how much Christmas trees cost now! By accident one year, we didn’t get our Christmas tree until the day before Christmas. And every tree at our Lowe’s was $1. Yep, $1. We got a gorgeous Christmas tree for a single dollar.
So the past three years, we’ve waited until sometime the week of Christmas to get our tree and we get it insanely cheap. So, if you can wait it out and start a new tradition of the clearance Christmas tree, you will save a ton of money every year.
8. Buy your tree second hand (If you buy fake trees)
If you don’t buy live trees, do yourself a favor and buy your tree second hand. I am constantly seeing super fancy fake trees all over Facebook Marketplace for insanely cheap prices because people want to make storage space quickly. And if you buy one just after the holidays, people quite literally give them away.
9. Find inexpensive activities to do together
You don’t have to get roped into expensive holiday activities and traditions. Grab this Christmas Bucket List from my free printables for tons of free and easy ideas to celebrate together. Also don’t forget to search for activities in your specific area because there are usually free light shows and other Christmas activities.
10. Teach your kids the true meaning of Christmas
If your kids think that Christmas is strictly about getting things for themselves, they will be set up for disappointment (regardless of the budget). So, teach your kids what Christmas is all about. If you need ideas, check out these 13 ways to teach the Christmas story to toddlers that are active and engaging for kids of all ages.
11. Try a toy exchange with a mom friend
A lot of parents are looking to get rid of toys right around the holidays. So, instead of hauling those toys off to Goodwill, bring them over to each other’s houses and see if you might regift some of them.
12. Have your kids make DIY gifts
One of the best ways to limit how much you spend on gifts for your extended family is by making homemade gifts. Not only will you save money in the process, but your family will absolutely treasure the gifts they get too. Here are 11 Ideas of Gifts Toddlers Can Actually Make.
13. Don’t spend a fortune on wrapping gifts
Don’t buy the expensive wrapping paper and gift labels. Your kids are going to rip it up into little pieces anyways. Instead, head over to Dollar Tree and buy each person in the family a different roll of wrapping paper. That way you know whose is whose and you only have to spend a few dollars in the process.
14. Check for forgotten gift cards and credit card points
Just yesterday, I finally took the plunge to organize my wallet and found several gift cards I didn’t know existed. So, who knows what you might have in there that you can use for holiday gifts (or regifting even!)
And the cash back on credit cards is honestly the biggest Christmas budgeting hack ever. If you can leave your credit card cash back untouched throughout the year, you’ll have a pretty impressive Christmas budget to use. My husband and I exclusively use credit card points at Christmas.
15. Reign in other miscellaneous spending
While it may be tempting to get take out during the Holiday busyness or stop and get holiday coffees for the coziness, it all adds up quickly. If you are able to reign in your personal spending on things like eating out, that will take a ton of stress off your Christmas budget.
16. Don’t feel pressured to buy for EVERYBODY
While it may be fun to do, you don’t need to buy for every niece, nephew, cousin, aunt, and uncle. But if you really want to do something, try making them some of the homemade gifts we talked about earlier in #12.
17. Make decorations at home
Pinterest has a TON of incredible ideas to create beautiful decorations with things solely from Dollar Tree. Plus, most of them don’t require you to be a crafty person either. Honestly, some of these ideas from Arts and Classy are so good, I kinda want to leave for Dollar Tree right now.
This post was all about gifting, decorating, wrapping, and everything else Christmas on a budget. This year, just enjoy the holiday with your family without all the stress that comes with the unnecessary spending.
-Beautifully Busy Mom
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Meet the Author
This post was written by Monica, a mom of two living in a small apartment and living on a budget. She has slowly learned every trick in the book to budgeting without losing out on any of the memories.
