The holidays are here! It’s a season of giving and celebration—and a great opportunity to make your money work smarter. With the right strategies, you can enjoy the festivities while keeping your financial goals on track. Here are eight tips to shop wisely and maximize value this holiday season.
1. Create a spending framework that works for you.
Holiday shopping is more enjoyable when you have a clear plan for your money and spend intentionally. One smart approach is to set up a dedicated holiday account (or accounts), so you can shop confidently without overspending.
From there, consider using a digital envelope system to organize your spending by category (for example, gifts, holiday meals, decorations, parties, attire, end-of-year tipping and travel plans). By creating dedicated savings accounts, you can easily track your progress and ensure every dollar is allocated toward what matters most to you—without sacrificing flexibility.
2. Avoid common holiday pitfalls, like dipping into an emergency fund or piling on unnecessary credit card debt.
As tempting as it might be, resist “borrowing” money from your emergency fund to pay for gifts and other holiday items. That money is there for a purpose: to help you handle things like an emergency car repair, root canal or leaky roof—things you can’t put off.
Likewise, don’t pile on unnecessary credit card debt when holiday shopping. Yes, plastic comes with advantages like making it easier to dispute a purchase, and many cards offer these perks:
- Free extended warranties on eligible purchases on top of standard warranties
- Coverage for lost, stolen or accidentally damaged purchases
- Loyalty programs for earning cash back or other rewards with every purchase
But spending with plastic can also leave you carrying large balances that make it hard to focus on other financial goals.
3. Celebrate and gift creatively.
Of course you want to maintain family traditions, but look for ways to save on the things your loved ones look forward to each year. If that’s together-time, suggest fun inexpensive activities like a drive through a nearby elaborate light display or a family game night. Does your family revel in a more expensive holiday pastime like skiing? Look for discounts, such as weekday versus weekend rates. A less-expensive day of the week or ski resort likely won’t matter as long as the tradition stays alive.
And why not share experiences, rather than presents, especially with neighbors or coworkers that you normally exchange gifts with. Or, suggest an evening of cookies and coffee with your neighbors or a holiday potluck at the office instead of gift exchanges.
Experiential gifts are also great for hard-to-buy loved ones, especially when you find a steep discount on sites like Groupon.
4. Make a list and check it twice for deals!
You can save money and spender’s regret by researching online for the best deals on the items on your shopping list, starting with these sites:
- SlickDeals.net: This site’s community of users votes on the best deals of the day before its editors review and post the most popular ones. It also features promo codes, coupons and active forums full of savvy tips. You can even set an alert for price-drop notifications. Similar sites include Dealnews.com, Offers.com and RetailMeNot.com.
- CamelCamelCamel.com: Did you know Amazon changes its prices multiple times a day using dynamic pricing? This price tracking site monitors millions of Amazon products and alerts you when prices drop, helping you buy at the ideal time. Other similar price-comparison sites that go beyond Amazon are PriceGrabber, Shopzilla and Google Shopping.
- Rakuten.com: By signing up online or via this portal’s app, you can activate coupons and cash back from over 3,500 online retailers. Just following the link to a favorite store sometimes activates a cash-back offer. MrRebates.com, TopCashBack.com and BeFrugal.com are examples of similar cashback shopping portals.
Plus, retailers like JCPenney, Kohl’s, Macy’s, Old Navy and many others offer discounts and store-cash rewards through their loyalty programs, even if you don’t have a store card. Also watch grocery and drug store circulars. During the holidays, they often run gift card promotions, such as $10 off if you buy two specific gift cards.
5. Shop holiday savings events.
Timing also plays a crucial role in getting great deals, so mark these major holiday shopping events on your calendar:
- Black Friday: If your wish list includes electronics, such as smart-home gadgets, gaming consoles, televisions and more, capitalize on the extreme savings offered by major retailers on the Friday after Thanksgiving and increasingly in the days or weeks leading up to it. Sites like BlackFriday.com and The Krazy Coupon Lady let you see all the deals in advance and in one place so you can compare prices and plan your shopping.
- Cyber Monday: The Monday after Thanksgiving also regularly features the hottest holiday merchandise at extremely affordable prices for online shoppers.
- National Free Shipping Day: On December 14th, many participating retailers offer free shipping with guaranteed delivery by Christmas Eve.
6. Stay vigilant about your cybersecurity.
Remember that cybercriminals are looking for easy steals, too. Protect yourself online by only visiting legitimate websites, always looking for the padlock icon or https prefix before entering payment details and using private and password-protected Wi-Fi. Also watch out for seasonal scams using unsolicited emails, texts and phone calls to tout unreal deals or request donations. Never click on their links or divulge personal information in response to them.
7. Utilize gift cards (but beware of scams).
Gift cards are a popular holiday choice—and many retailers sweeten the deal with bonus cards when you buy in bulk. They’re also great for hard-to-shop-for friends.
But beware of gift card scams:
- Avoid third-party sellers: Buy gift cards directly from the retailer or a trusted source.
- Check packaging: Make sure cards haven’t been tampered with.
- Don’t share codes online: Scammers often ask for gift card numbers as payment—never comply.
8. Save year-round.
It’s never too early in the year to set aside money for holiday spending. The simplest and surest way to do this: In January, designate a specific savings account for your holiday funds and direct deposit a percentage of each paycheck into it so you never miss a contribution.
If you haven’t been saving all year, don’t panic now that the holidays are in sight. Simply make this a priority for next year.
With these strategies, you’re not just saving—you’re optimizing. Make every purchase count, protect your financial health, and start the new year confident that your money worked hard for you.
Editor’s note: Quorum is not affiliated with any of the companies mentioned in this article and derives no benefit from these businesses for placement in this article.
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