Save money during the holidays with these five tips

Whether you’re filled with holiday spirit or a self-declared Scrooge, this time of year can be the most expensive. If purchasing a home is on your wish list for the year to come, staying on track with your financial goals during the holidays is especially important. Here are five tips that can save you money this season:

1. Create a holiday budget and spending plan – A budget is important year-round, but creating a holiday-specific spending plan can help you set realistic expectations and avoid overspending. Be sure to include every seasonal expense you can think of, like gifts, travel expenses, decorations, entertaining and charitable giving. By planning ahead and budgeting, you can determine how much you can comfortably afford before you whip out the wallet.
2. Shop with a list and compare prices – Impulse purchases can quickly derail your budget. Before shopping, make a list of who you’re buying for and establish a spending limit for each person. Comparing prices online and looking for deals can help you stretch your dollars further, stay focused on what’s needed and feel like you’re getting the most bang for your buck. When you do make purchases, be sure to keep the receipts and monitor spending throughout the season so there are no surprises later.
3. Use cash or create a separate spending fund – Whether you use cash, a separate debit account or a prepaid gift card, setting a spending limit can help you avoid overspending. Financial experts often recommend using cash because physically seeing your money decrease can make it easier to stay on budget. For online purchases, a debit account dedicated to holiday spending or a prepaid card can help keep your spending in check. If you do use a credit card, pay off balances promptly to avoid interest charges and start the new year on strong financial footing. 
4. Be cautious with Buy Now, Pay Later offers – Many retailers now offer Buy Now, Pay Later (BNPL) financing at checkout. While these programs can seem convenient, the Consumer Financial Protection Bureau warns they may encourage overspending and can come with major fees if payments are missed. Before choosing a payment plan, make sure it fits comfortably within your budget.
5. Focus on meaningful, low-cost gifts – Thoughtful gifts don’t have to be expensive. Homemade treats, personalized cards, family recipes, photo books or acts of service can be meaningful alternatives to high-priced gifts. Consider organizing a family gift exchange or Secret Santa to reduce costs while keeping holiday traditions alive.

Want more tips for saving money? INHP offers classes on budgeting and understanding credit. Both classes are free, available online and in person, and can help you prepare for buying (and keeping) a home.