Debt Free Holiday Shopping Guide

Are you tired of going into debt every holiday season? Is it possible to stay on a holiday budget when purchasing Christmas gifts?

In this guide, I am going to share debt-free holiday shopping ideas that will help you enjoy a stress free Christmas season (and new year!).   

Christmas is a time of giving. It should be a time that you can look forward to without the added stress of over-spending.   The good news is, it is possible to get some great gifts within a spending limit.

Whether your family likes to go all out or keep it simple, I believe you can do Christmas well without breaking the bank!  After all, Christmas is the most wonderful time of the year.  

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Where to Start

Come up with a holiday spending plan.  This does not have to be complicated.  The goal is to minimize holiday stress with careful planning so you can enjoy a debt-free holiday season.  Before writing down a budget, make a list of people you want to purchase gifts for.

Include everyone from family, friends, co-workers, teachers, and remember to factor in gift exchanges. Once the list is written, write down the ideal amount of money you would like to spend on each person and a list of gifts you’d like to purchase for them. For example, this could range from $5 coffee gift cards to $200 on something special for a particular family member. After finishing the shopping list, you can then think it over and adjust accordingly. 

Here is a free Christmas Gift List printable template to get you started.

Shop Off Season 

Off season shopping is perfect for more generic gifts such as candles, gift baskets, gift cards, etc. When shopping throughout the year, make it a habit to check out sale or clearance sections.  You may find something at a good price that can be tucked away.

I suggest having a designated clear box (like these) to keep gifts in. By using a clear box, it’s easier to see what has already been purchased.  This is a great way to offset holiday expenses.  

For simple generic gifts, Costco has some great deals on gift card bundles at discounted prices. Usually these bundles include 5, $20 gift cards for $80 or something similar. 

Clothing stores also have seasonal sales. This is a good time to stock up on comfortable lounge sets or matching pajamas for your family.  

Another tip is to do some of your shopping during black Friday or cyber Monday.  This is a great time to make holiday purchases for friends and family members.  

Some of the best deals are going on during the month of November.  As you think of gifts throughout the year, make a wish list on Amazon for all of the potential gift ideas that come to mind.  

Traditions

My husband and I started a fun tradition with our children years ago, one that the whole family can enjoy. We wanted them to give gifts to each other. If each of our four children spent $25 on a gift, there went $100 of our Christmas budget. Instead, we came up with a different idea to continue having a debt free holiday. 

Every year, we have the children draw names. Then we set a budget (let’s say $10 give or take), and we head to our favorite thrift store. Our children have found some of the best gifts for each other at the second hand store!

One of our children likes the character of Yukon Cornelius in the Rudolf movie, and sure enough, their sibling found a fun Yukon Cornelius ornament. Another year, one of our children knew their sibling wanted a mini waffle maker. And guess what we found at the thrift store? A mini waffle maker!

Every year, our children have given each other fun, hilarious, and meaningful Christmas gifts. This is a tradition we all look forward to. 

If you have a large extended family, suggest drawing names. Everyone only has to purchase one gift and everyone receives one nice gift. If your children have many cousins, suggest they also draw names.

Another good idea is to choose a theme and then shop around and give a wonderful gift within certain guidelines. For example, a spa theme could include a bath bomb, slippers, a candle and chocolate. 

Home Made Gifts

Do you love to bake? Friends love a fresh loaf of home made bread with a jar of jam. Have fun packaging it and purchase a spool of twine or raffia. Add a cinnamon stick or a sprig of pine for a pretty package accent. 

I know someone who makes big, delicious, cinnamon rolls every Christmas season. She individually packages them in a food grade box and then gives them out to friends at church. Every year people look forward to one of her “famous” cinnamon rolls!

If you’re crafty and have the time, make a few gifts! I did this for my children one Christmas when they were little. They each received a stuffed animal that I sewed for them and they loved it. 

Get Creative

Family pictures are a meaningful gift for grandparents. Almost every year the grandparents receive a calendar, photo book, or photo magnet from us. Stores are always having sales leading up to Christmas on photo gifts.  Usually they offer discount codes and free shipping.  This is a thoughtful and reasonable gift that keeps on giving. 

Many retail stores have fun activities to take advantage of during the holiday season. For example, usually in November, World Market does a scavenger hunt in their store. The prize has been cash to spend in the store that day. 

Shop smart throughout the year as stores are always having sales. If your son loves legos, watch for a sale and put it away. Your daughter has been eyeing a pair of new shoes? Since you spent less on the lego set earlier, a full price purchase on the pair of shoes may be easier. My point is to be flexible and always be thinking ahead. 

Make Extra Cash for Christmas 

Here are some suggestions on how to make extra cash before Christmas time. Go through your home and consign items that are no longer needed or have been outgrown. This is such an easy way to make some extra money for shopping and a great side hustle.  The plus side is that you clear out toys and clothes before more is accumulated during the holidays! 

Sell clothes on Poshmark. If you have a few nicer items that are worth more, post them on Poshmark and make some extra cash so you can have a debt free holiday. For my guide to getting started on Poshmark, check out this link to my ebook here or this post for Poshmark newbies.

The Reason for the Season

Keep focused on what the real reason for gift giving is. Sometimes it doesn’t have to be extravagant or big to be meaningful. Jesus came humbly as a baby and gave us the best gift of all which is the free gift of salvation and the opportunity to spend eternity with Him. 

Try and get your shopping done early so you can sit back and enjoy the must wonderful time of the year.

Need more Christmas shopping inspiration? Check out my other posts!

The Ultimate Christmas and Holiday Gift Guide Roundup

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