Last updated November 2024
A third of Americans go into debt during the holidays, according to surveys from LendingTree, an online loan platform. Besides the gifts, food, and travel that drain your bank balance, this seasonal binge also negatively impacts the environment. But many people want to simplify the season: A 2022 survey by the Center for Biological Diversity found that 90 percent of Americans wish the holidays were less materialistic, and 87 percent believe they should be more about family and caring for others, not giving and receiving gifts.
Here’s are 10 ways to get your fa-la-la-la-la on without falling into financial ruin.
1. Don’t Pay for Extended Warranties
Stores push extended warranties for everything from laptops to luggage. Retailers and the companies that administer these plans make easy money from selling service contracts and “protection plans”: Stores typically keep 50-70 percent of the cost of warranties they sell, a profit margin that’s far better than for most products they offer. But because these mini-insurance policies come with fine-print coverage exclusions and other gotchas, they’re usually bad deals for you.
We often warn against buying these plans. Buy insurance to protect against financially catastrophic risks, not to (poorly) cover repair costs of a gaming console or suitcase.
2. Borrow or Rent Party Clothes
The invite for your New Year’s bash says “black tie” and the office holiday bash leans cocktail chic. If you don’t own a tux, ballgown, or closest full of evening wear, you can hire finery from Rent the Runway, Nuuly, or another clothing rental site. The cost is generally much less than purchasing a frock or suit. Click here for our full advice for renting threads.
Or, said sustainable fashion expert Alden Wicker, “ask pals if they have a dress or blazer to lend you.”
3. Don’t Let Fake “Sales” Make You Overspend
Most retailers’ discounts are basically marketing ploys, and most sale prices aren’t special. We tracked prices at 24 major retailers for 33 weeks and found that 21 of them advertised bogus deals more than half the time. Even if a retailer claims to offer you 60 or 70 percent off, it’s likely discounting off a “list” or “regular” price it rarely or never charges.
Do some stores offer the best deals of the year on Cyber Monday? I’ve found some do. But the only way to know whether you’re getting a real bargain is to shop around. Our top holiday shopping tips provides ways to do that.
You might also save by purchasing clothing, jewelry, or art secondhand at an estate sale or resale shop, or just paying full price for something well-made (or hand-crafted), at a local, independent retailer.
4. Get Smart About Gift Wrap
Nearly 4.6 million pounds of gift wrap is sold in the U.S. every year, at a cost of nearly $3 billion. That’s money that goes up Santa’s chimney, and an environmental nightmare, since about half of all used wrappings go into landfills. Instead, wrap presents in old newspapers, invest in reusable gift bags, or look into Japanese furoshiki, where you bundle your offering in a bandana-like cloth meant to be repurposed again and again.
“My mother-in-law has a bunch of holiday boxes with different patterns on them that we use every Christmas,” said Dani Dredger, Checkbook’s senior manager for digital marketing and fundraising. “They nest inside each other for easy storage. Now if only we could get her to just assign each family member their own print—elves, snowflakes—to make present opening easier.”
5. Don’t Overdo It with Decorations
It’s a waste of money—not to mention storage space and natural resources—to purchase decorations and party supplies you use only once or for one day a year. (We’re looking at you, turkey-themed plates/candle holders/paper napkins.)
“Instead, look through your china cabinets and cupboards, and see what you already have,” said Laura Fenton, a sustainable living expert and author of The Little Book of Living Small. “If it’s Thanksgiving, pull out wooden bowls, and at Christmas maybe see what you own that has a little sparkle.”
If you’re putting up a holiday tree, it’s probably cheaper to invest in a quality fake one you can put up yule after yule over a one-and-done real tannenbaum. Still, according to the Nature Conservancy and other environmental groups, most real trees are sustainably farmed and combat greenhouse emissions.
6. Get Money Back on Gift Purchases
You’ve probably already heard the one about gifting experiences (a gourmet dinner at a restaurant, a coupon for free babysitting) instead of crowding your loved one’s closets/bookshelves/garages with more stuff.
To save money on more traditional purchases, consider using a free online shopping portal like BeFrugal.com, CouponCabin.com, CouponFollow.com, MrRebates.com, Rakuten.com, or TopCashback.com. You can either visit a portal’s website to access cash back from a range of retailers (Banana Republic, J Crew, Macy’s) or install its browser extension to net between two and 10 percent refunds for purchases.
“I always check cashback portals when I shop, since most retailers I frequent offer deals on everything from shoes to housewares,” says Checkbook’s director of public relations Jamie Lettis. “Last year I racked up $125 in cash back on holiday gift purchases.”
7. Pick Cheaper (or Free!) Flowers for Your Table
Other than delicious food and a few candles, there’s little that lights up your holiday table like some colorful flowers. Still, many blooms are out of season in the winter, and ordering bouquets and wreaths from a pro can be costly. To find the best arrangements, prices, and advice, see Checkbook’s ratings of local pros.
Or save money—and channel your inner Martha Stewart—by doing your own flowers. Click here for how to take a bloom-arranging class.
“You can mine the outdoors for supplies—acorns and autumn leaves for Thanksgiving, evergreen branches during December,” said Arlington, Va., floral designer Sarah von Pollaro. Or head to a wholesale florist—in many areas, they’re open to the public as well as to pros—where you’ll unearth low prices and a tremendous variety of roses, carnations, et al.
8. Send a Holiday E-Newsletter, Not Spendy Cards
American still mail 1.3 billion holiday cards each year. While it’s a lovely sentiment to reach out to people, the costs to print, buy, and mail a jolly missive to your high school chem lab partner/former boss/college frenemy adds up. Instead, consider sending an email card (Evite and Paperless Post both still have free options) or design your own yuletide missive for friends and fam.
9. Save Money on Airfare
Airlines use dynamic pricing now, meaning that the higher the demand, the higher the price for flights. That’s why jetting home (or to London or Hawaii) can get more expensive in the days directly surrounding major holidays (Thanksgiving, Christmas Day, New Year’s Day).
To save on flights, try to book as far in advance as possible (usually about nine months out) or be flexible about your travel dates. Most booking engines (Kayak.com, Skyscanner.com, Google flights) provide a way to look at fares on a calendar, allowing you to determine which dates have the cheapest flights.
Another strategy? Fly on the actual holidays—Turkey Day, December 25, or January 1—when demand is lower. The savings might make up for the time you miss out on under the mistletoe (or baking pumpkin pies).
To test this, we looked at flights close to—and on—Christmas Day about six weeks before the holiday. To fly from the Washington area to San Antonio on December 25 (and returning January 6, when the seasonal hubbub has calmed down), direct round-trip flights on United cost $300, and flights with a connection ran $100 less on Frontier and Spirit. The same flights on dates surrounding the holiday (Dec. 20-24 and the 26th) were much higher: $530 (United direct) or $475 (flights with connections on Frontier and Spirit).
Headed overseas? Jetting out on the holidays can net even greater discounts. For instance, we found a round trip between San Francisco and London (with a connection in Salt Lake City) flying out December 25 and flying back January 1 for $1,182. The same route jumped up to more than $2,000 if we flew on December 21 and 28 (unless we were willing to take a three-airline, three hop route through Iceland that took a whopping 34 hours—and still cost $1,433).
10. Keep Your Gift Receipts
It seems like a no-brainer, but keep your gift receipts—and check the return window—for any gifts you give or get. Many retailers have longer return periods during the holidays, but you don’t want to be left with an ugly reindeer sweater or useless kitchen appliance you don’t want.