Cash-Strapped & ‘Dreading’ This Holiday Season, People Are Making These 7 Sacrifices To Save Money
It's not the most wonderful time of the year for everyone.
Krakenimages.com / Shutterstock According to a new survey commissioned by Current and conducted by Talker Research, 54% of participants are having trouble getting in the holiday spirit because they know how expensive the festivities can be. To relieve some of the stress, 54% also said they would be making sacrifices or finding ways to cut back on the amount of money they spend, and 76% will be altering how, when, and where they celebrate.
"The holidays are an expensive season for everyone, with costs piling up between gifts, food, travel, and decor, but for Americans living paycheck to paycheck, the pressure is even greater," Erin Bruehl, vice president of communications at Current, says. "After a year with economic challenges, including people still feeling the effects of inflation on the prices of everyday essentials, many Americans are especially worried this year about how they can afford to celebrate within their already tight budgets."
Here are 7 sacrifices people are making to save money this holiday season:
1. Putting a strict limit on gift budgets
Over one-third of survey respondents (36%) reported that they plan on setting a strict gift budget this year. Smart planning ahead of time can help reduce financial stress and impulse buying. First, determine your overall holiday spending limit and keep it realistic. Include everything from gifts and wrapping supplies to food, decor, and even travel.
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Then, make a list of everyone you need to buy gifts for, and determine who you plan to spend more or less on. Use a spreadsheet or notebook to track everything as you buy, and don't be afraid to buy in bulk or shop during early sales. Adjust your budget as needed, but the key is to stay under your overall spending limit.
2. Not purchasing new decorations
Tied as the top sacrifice people are making this season, 36% percent said they also won't be investing in any new holiday decor this year. Though it's always fun to go shopping for brand new items to spruce up your home for the holidays, the decorations you already have in storage from previous years will do just fine. If you can't deny that spending bug, the dollar store typically has some affordable options, and there's sure to be no shortage of secondhand holiday items at the thrift store.
DIY decor can be just as nice as store-bought. Many decorations can use common items you already own, such as paper snowflakes or salt dough ornaments. You can even make it a fun activity with kids, and teach them how to make simple, memorable decorations that you can reuse every year.
3. Skipping a big, expensive holiday meal
One of the best things about the holidays is the feast you get to enjoy with your loved ones, but 21% of survey respondents said they'll likely be forgoing it this year because of money. However, even when you don't have the extra cash to splurge on a giant ham or gourmet mashed potatoes, there are many meaningful alternatives that will still make the day special.
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If there are a lot of people attending the gathering, consider turning it into a potluck. This can take the financial stress of providing all the food off the host, and you may get to try some fun and interesting new dishes.
Or, serve dishes that tend to be lighter and cheaper, like appetizers or brunch. Small bites and finger foods can go a long way, and you can avoid the cost and hassle of cooking a fancy meal. You can even rely on store-bought or pre-made items, such as veggie or cheese trays,
4. Not putting up a Christmas tree
A Christmas tree is considered a hallmark symbol of the holidays, but it's definitely not necessary to get in a festive mood, according to 17% of survey respondents. Whether you prefer real or fake, they can both be surprisingly expensive to purchase, not to mention a hit to your electric bill.
Growers estimate that the cost of a real tree in 2025 will be between $80 and $100; of course, location and size will impact that price. According to Forbes Vetted, the price of fake trees varies wildly based on everything from size and quality. To put it into perspective, however, their top-rated pre-lit tree (who would even consider getting a fake tree that wasn't pre-lit?!) is a Balsam Hill brand at over $800.
Thankfully, you can still get that Christmas tree feeling without actually putting up a tree. Outline a tree shape on the wall with string, lights, or garland, and hang family photos or paper ornaments. If you want something a little more substantial, stack up empty boxes or presents into a makeshift tree and add strings of lights and a star on top!
5. Doing a spend-free or gift-free holiday
When times are tough, skipping gifts or spending for the holidays altogether is totally valid. Fourteen percent of survey respondents said they're not giving or receiving gifts this year, and the same amount said that they're not buying gifts, but rather giving free or homemade items.
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This is the perfect time to put your crafty hobby to use. Crocheted items, baked goods, and even homemade soap make thoughtful gifts for your family and friends. They'll appreciate the time and effort you put into the gifts, and it often means more than how much money you spent.
6. Celebrating virtually
If you've ever traveled around the holidays, you know exactly how terrible it can be. Airfare prices become ridiculous, not to mention the strong possibility of your flight getting cancelled due to overbooking or weather. Even driving can become a hassle, with high gas prices and heavy traffic.
Thirteen percent said they've decided to celebrate the holidays virtually in an effort to save on travel. If there's one thing the pandemic taught us, it's that it's still possible to spend good, quality time with your loved ones via Zoom or FaceTime.
7. Celebrating on an alternative day
Ten percent of survey respondents said they've simply shifted their celebrations to a different day to make things cheaper. There's no rule that says you can't celebrate whenever you want, and if you do it after the actual holiday, you'll be able to take advantage of all the post-holiday sales, deals, and clearances. Not to mention, it will likely be much cheaper and easier to travel.
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Additionally, this may be a better option for people who have other commitments or difficult schedules. Flexibility takes the pressure and stress off everyone, and you can plan the day however you want.
Kayla Asbach is a writer currently working on her bachelor's degree at the University of Central Florida. She covers relationships, psychology, self-help, pop culture, and human interest topics.
