9 Ways to Celebrate the Holidays on a Budget

The holidays are a time when many of us tend to go all out. After all, they come around only once a year. But going overboard on spending could leave you with a pile of credit card debt, not to mention a world of regret. If you're lacking funds for a blowout holiday celebration this year, here are a few tips for celebrating on a budget.

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Holiday cards may be nice to get, but let's be real -- do you really think the majority of your recipients are going to keep that card for more than a day? Rather than pay for custom cards, craft a witty or heartfelt email message and blast it out to the important people in your life. It'll save you time and won't cost you a dime.

The holiday drawings and crafts your kids made in nursery school that have been collecting dust in your basement? Now's the time to bust them out. If money is tight, don't spring for fancy lights and the like. Instead, hang up homemade works of art.

If you're used to having your holiday dinners catered, you should know that cooking in your own kitchen instead could likely cut down your costs by two-thirds, if not more. Even if you're far from a gourmet chef, you'd be amazed at how easy it is to follow some online recipes and whip up a fabulous set of meals. You can even enlist your kids' help and make it a family activity.

If you generally host a big holiday party, now's certainly not the year to do so, what with the pandemic still raging. But also, big shindigs cost money to pull off, so rather than dip into your savings or risk unhealthy debt, find ways to create fun with your immediate family instead. Have a board game night, a movie night, or even a dessert party night.

It's not unusual for children to expect presents during the holidays, but if you're looking to trim your spending, see if you can arrange a toy swap with local friends instead. With a toy swap, you trade gently used or unopened toys with other families, so that at the end of the day, your kids still get a gift and the enjoyment of a new doll, game, or action figure.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

Physical gifts may be fun to open, but they can cost a lot. A better bet, if you're on a budget, is to give the gift of experiences. Plan a snow hike and whip up the most delicious hot chocolate you've ever made to take along with you in a thermos. Or scope out neighborhoods with amazing Christmas light displays and take your children to see them. In the long run, your kids are apt to appreciate those memories more so than an extra package.

A lot of people are canceling holiday travel plans due to the pandemic. But if you want to forge forward, it pays to look at driving to your destination (if it's close enough) rather than flying. Not only might that be the safer option, but if you're a larger family, it'll generally be much more economical.

If you're going to be flying during the holidays (say your parents live across the country and driving just isn't feasible), cashing in air miles or reward points could make your airfare much cheaper. Furthermore, the right travel card could save you money on added fees, like checked baggage, so if you don't get these perks with your current credit card, you may want to quickly apply for a new one.

Nobody wants to be boarding a plan on Christmas Day. But if you're willing to make that sacrifice, you may find that you're able to score a great deal on airfare. Being flexible with your plans could save you a bundle of money.

This year, the holidays may look different for a lot of people because of the pandemic and associated recession it's spurred. But if you're limited in how much you can spend this year, worry not. Even if money is tight, you can still find a way to make this holiday season joyous and memorable -- without closing it out with a pile of debt.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.