According to data from the National Retail Federation, Americans spent approximately $964.4 billion on holiday shopping during the 2023 Christmas season, setting a record high and a 3.8% increase from the previous year.

Most retailers understand that consumers are looking for bargains during the holidays and offer deals during the season, aside from holiday deals there are other ways to save money when holiday shopping.

Save for Holiday Spending

Don’t go into debt to fund Christmas. Set a limit on the amount of money you will spend and stick to it. Pre-planning is key to avoiding debt during the holiday season. Start right after Christmas saving money for the following year, you can deposit your money into a savings account setup specifically for holiday shopping. Some banks and credit unions offer Christmas Club Accounts, check to see if yours does. Make regular deposits into the account so that by the time Christmas rolls around you have saved enough money to cover all of your holiday expenses.

Gift Giving Policy

Just because others do something does not mean you need to do the same, or just because you were raised to pass out gifts to everyone does not mean you need to continue that tradition. Many people are appreciating and embracing minimalism. Christmas and the holidays can be about so much more than just exchanging gifts. Overspending and going into debt just to buy gifts for others is not necessary. You can talk to the people in your life and opt out of gift giving all together or decide to cut down on how much you spend and who you exchange gifts with. Decide what works for you and gift give accordingly.

Make a List

Make a list of everyone you are buying for and the amount you are going to spend on each person and then stick to the list. Check off names as you go so you don’t accidentally purchase gifts for someone you have already shopped for.

Comparison Shop

It’s easy to compare prices online. Do some research online and shop around you might find the exact same item priced differently at various stores.

Black Friday and Cyber Monday

These have become prime shopping days for consumers. Make a holiday list prior to these events and then during the deal days look for the items you want.

Use Your Rewards Credit Card

Use a credit card that earns rewards to purchase your holiday gifts and other items. Each time you make a purchase you can earn cash back or other perks. If you are disciplined with your credit cards, you might consider opening a new credit card that has a sign-up bonus. Many times, those bonuses require you to spend a certain amount within the first few months, if you are going to spend that amount during the holidays anyway you can take advantage of the bonus. Just be sure the card has a low APR and no annual fees.

Shop Secondhand & Thrift Stores

The stigma associated with buying used and refurbished items has lessened, many consumers regularly purchase pre-owned items. Refurbished tech items can come at a deep discount and why pay full price for children’s toys and clothing. If you have someone on your list who is a collector secondhand stores offer unique items you might not find anywhere else and you can find a wide variety of household items and vintage clothing at thrift shops.

Search for Coupons & Discount Codes

Search online for coupons and discount codes when shopping. Use Google or RetailMeNot to search for coupons or use a browser extension, such as Honey or Capital One Shopping, which will load the coupon codes at checkout.

Load Your Cart & Wait

Add the items you want to your cart and then wait a few days. Some stores will reduce the price or offer a discount for items that are left in your cart. When shopping at Amazon you can choose “save it for later” and then keep checking back to see if the price has been reduced.

Shop All Year

Don’t wait until Christmas time to start shopping. Make a list early in the year and as you come across sales and discounts buy gifts then. A lot of seasonal items go on sale after the holiday so stock up then.

Use Up Gift Cards

If you have gift cards laying around that still have a balance, use them to purchase gifts for others.

Shop Early & Avoid Paying for Shipping

If you are shopping online start early, you don’t want to end up paying for rush shipping because you waited until the last minute and always look for free shipping when you can. Many online retailers offer free shipping for orders over a certain amount. Add items to your cart overtime until you have enough to qualify for free shipping. Most retailers also offer free shipping to their local store if you don’t mind running out to pick up the order.

Say No to Gift Exchanges

Don’t participate in every gift exchange that comes along. Work, clubs and organizations you are part of might have a gift exchange but that does not mean you need to participate. Save the gift giving for those closest to you. It is perfectly acceptable to politely decline.

Group Gifting

Consider joining other family members or friends in a group gift if the gift you are giving is expensive, for example often siblings join together when giving gifts to their parents or a group of parents may all contribute towards a gift for a coach or teacher. This allows you to split the cost and everyone saves money.

Regift

It is perfectly ok to regift an item. If you received a new coffee maker or crock pot as a gift but you will never use it pass it along to someone who will. Re-wrap it and add a nice card.