When it comes to holiday spending, many people feel they have to overspend wildly to prove they care, kind of like the true love in “The 12 Days of Christmas.” But holiday revelers who value frugality over flashiness — seriously, where would you even put a partridge in a pear tree? — are proving you can enjoy the season and cut costs at the same time.
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These frugal folks have found that you can still enjoy the magic of the holidays without incurring debt that will haunt you into the new year like Jacob Marley’s ghost. How do they do it without feeling deprived? GOBankingRates spoke to several experts about how to plan a holiday that cuts costs — but not cheer.
1. They Budget in Advance
With more than two decades of experience in retirement planning and personal finance, Steve Sexton, CEO of the Sexton Advisory Group, knows how a smart plan can help people save, especially during high-temptation times like the holidays. Sexton believes holiday spending shouldn’t derail your overall financial goals or push you into debt.
His first tip for saving money while embracing the spirit of the season is simple: Create a “real-world” holiday budget, and stick to it. Start by writing down all your anticipated holiday expenses, such as gifts, travel, food, hosting, decor, cards, shipping and wrapping supplies.
“From here, set a realistic limit — meaning what you can afford without derailing your financial duties. Bills, savings and retirement should always come first, even during the holidays,” he said. “Treat your holiday budget like any other bill — record your purchases, check in weekly, and keep an eye out for creeping costs.”
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2. They Focus on What Actually Brings Joy
Sure, getting the hottest toy or gift of the moment might feel impressive, but Sexton invites you to consider what will actually bring your loved ones joy. Spoiler alert: They’d rather spend time with you than stare at a Labubu.
Making trade-offs that prioritize spending time together can feel priceless in ways that Instagram-worthy gifts simply are not. Sexton suggests focusing on what truly makes your family happy by emphasizing quality time and thoughtful gifts while trimming other expenses.
“While priorities may look different for every family, trade-offs could look like focusing your budget on immediate family and close friends instead of every distant acquaintance, skipping elaborate decor in favor of DIYing or repurposing items from past years, hosting potlucks instead of shouldering the entire cost of a holiday meal, or opting for Secret Santa or White Elephant to stay on budget,” he said.
3. They Rethink Traditions
Just because a fancy holiday meal with all the trimmings — or days spent seeing double features at the movies — has been a family tradition doesn’t mean it needs to continue.
Sexton encourages you to rethink holiday habits that have become prohibitively expensive. Instead of seeing all the new holiday releases in theaters, consider a cozy movie night at home. Or, in lieu of a pricey dinner out, spread some of that cheer to those in need by volunteering at a soup kitchen or with a community organization.
“I’m a fan of connection overconsumption,” Sexton said. “In past years that meant prioritizing shared experiences over expensive things or fancy trips. A holiday movie night, hosting a cookie swap or volunteering at a food bank as a family is much more memorable than a pile of gifts.”
4. They Become Expert Price Trackers
According to Serge Salager, CEO of Visualping — a price-tracking tool that helps shoppers monitor price drops and travel discounts — people often equate frugality with deprivation because they assume going low-cost means giving lower-quality, generic gifts. But by using price-tracking tools or setting up searches with AI assistance, you can find better prices on gifts you truly want to give.
“The secret to cutting costs without feeling like a Grinch is to realize you don’t have to downgrade the gift; you just have to upgrade your timing,” Salager said. “Retailers fluctuate prices constantly. Instead of settling for a cheaper alternative, find the premium gift you actually want to give and use a price-tracking tool like Visualping to track the price.”
With price-tracking technologies, you can set alerts for when an item hits your target price or find retailers offering that premium gift at a fair price.
5. They Get Creative About Finding Discounts
When you hear the name AARP — formerly the American Association of Retired Persons — you may assume the group and the discounts it unlocks are only for retired people. However, Elvira Christiansen, director of retail and loyalty for AARP Services, and Steven Guilday, director of travel for AARP Services, remind shoppers that you only need to be 18 to sign up and start benefiting.
Becoming an AARP member can connect you with discounts that help make the holidays merry and bright. For instance, using an AARP discount through FEVO can save you 15% on tickets for certain live events and sporting events — unique experiences that can double as memorable gifts.
Your credit card rewards and points programs can also help reduce the cost of popular gifts or defray travel expenses. If you’re in certain professions, like healthcare, education, military or law enforcement, there may be additional discounts available through your employer or professional associations.
The Bottom Line
Holiday fun doesn’t have to go hand in hand with overspending. By rewriting old rules and traditions, getting proactive about tracking prices and showing creativity in how you hunt down discounts, you can enjoy the season without leaving your budget out in the cold.
Need a little extra holiday magic in your budget? MoneyLion is giving away $2,000 a day for 50 days starting Dec. 5. Sign up and see if this festive windfall lands under your tree.
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This article originally appeared on GOBankingRates.com: 5 Ways Frugal Americans Are Cutting Holiday Costs — Without Feeling Deprived
