How to Stretch Your Budget for the Holidays 

Shopping for the holidays doesn’t have to be overwhelming for you and your wallet! Before you get snowed-in by holiday spending, check out our holiday budgeting tips for maintaining a holly jolly wallet.  

We share our top tips for how to stretch your budget for the holidays below. 

Make a Shopping Plan 

The most important thing you can do to protect your holiday budget is to make a plan before you start shopping. We break it down for you step-by-step below. 

Make a List (and check it twice!) 

Start by making a list of each person you want to purchase gifts for. Seeing everyone written down can help you decide who you actually want to give gifts to this holiday season.  

You might end up with more people on your list than you initially thought you were purchasing gifts for. This gives you the opportunity to curate your list based on your overall budget for gifts.  

Set a Spending Limit 

After you’ve made your list of gift recipients, set a spending limit for each person. Having a limit to refer to can help when you’re tempted to overspend.  

Add up your spending limit for each person on your list. The resulting number should be less than or even within your overall budget. If it’s higher than your budget, lower your spending limit for each person or remove people from your list. 

Set Expectations 

After you’ve decided who you want to give gifts to, consider setting expectations with each person.  

Here are a few conversation starters: 

• “I’d love to get you a gift this year, and I have $50 budgeted for it. Does that sound like an amount we’re both comfortable with spending on each other?” 

• “I’m on a tight budget this year but would still love to celebrate the holidays with you. Can we get together for a cup of hot chocolate while we watch our favourite holiday movie?” 

• “My budget is limited this year, and I’ve decided to prioritize charitable giving instead of physical gifts. I know you love dogs, and I would love to donate to our local animal shelter in your honour.” 

You can set a spending limit that you’re both comfortable with, or you could explore alternative gift options like the ones we discuss below. You might learn that the other person is feeling the same way and will appreciate the conversation.  

Being transparent about money habits with people we trust helps advance the financial health of our community.  

Brainstorm Gift Ideas for Each Person 

Now you’re ready to start brainstorming gift ideas!  

Write down ideas for each person on your gift list. Maybe it’s a set of gardening tools for your friend or a wallet for your dad. Brainstorm a few extra ideas for each person so you have backups if your original ones don’t work out. 

Compare Prices 

Once you have your list of potential gifts for each person, it’s time to compare prices.  

Search online for each of your items and compare prices across different stores. If you search for an item and it’s not on sale, consider waiting to make your purchase and checking back in a few days. Most retailers have major sales throughout the entire month of December.  

If a similar item is available from two different retailers, compare what promotions and coupons are available. Maybe one online store offers free shipping while the other offers 30% off. Compare your options and choose what makes the most sense for you.  

EXPERT SHOPPING TIP: Try making your holiday purchases from the same retailer to maximize your savings. Spending more at one retailer could help you earn a higher percentage off or free shipping compared to spending smaller amounts at different stores. 

Maximize Your Rewards when Spending 

Before you start making purchases, take a moment to review your credit card. Spending with a credit card that offers cash back or extra points will help you yield maximum rewards for your spending. You’re making the purchases anyway—you should be rewarded for them. 

Is your current credit card giving you the rewards you deserve? Maximize your rewards this holiday season by exploring our credit card offering here. 

Avoid Impulse Spending at the Mall 

Online shopping is so helpful for easily comparing prices across a variety of stores. If you prefer shopping in person, stay strict with yourself at the mall. Decide ahead of time what additional “treat” purchases you’ll allow yourself. This could be a coffee, hot pretzel, or slice of pizza. Avoid any additional spending beyond that to help you stick with your holiday budget. 

Planning ahead will also help you avoid one of the biggest money pitfalls: last-minute shopping under duress. When you wait until the last minute to do your shopping, you’re left with what’s remaining in-store. You’re more likely to overspend on an item because it’s all that’s left.  

EXPERT SHOPPING TIP: Pack snacks and a thermos of homemade coffee to avoid feeling tempted to purchase overpriced treats at the mall.  

Explore Alternative Gift Ideas 

Gifts come in all shapes and sizes! You don’t have to spend a lot of money on something for it to be a great gift. The best gifts are often ones that come from the heart. 

We give you our best alternate gift ideas below.  

Handmade Gift Ideas 

Even if you aren’t a crafty or artistic person, you can still make beautiful homemade gifts for your loved ones! 

Homemade gifts show that you put in thought, time, and effort to create something that’s one-of-a-kind for someone you love. The gifts that often become our most cherished possessions are typically items that money can’t buy.  

Here are a few handmade gift ideas: 

• Ornaments made from materials like felt, paper, or air-dry clay 

• Desserts you can make in large batches like peppermint bark, fudge, or mini bread loaves 

• DIY bath bombs, homemade play dough, or sugar scrubs 

• Other holiday-themed treats like gingerbread syrup for coffee, hot chocolate mixes, or tea trees 

EXPERT GIFTING TIP: Consider a craft or baked good that you can make in bulk and gift to everyone on your list. This way, when you buy a pack of baking ingredients or clay to make ornaments, you’ll use the entire package(s), and none will go to waste.  

Charitable Giving 

Give a gift that gives back! One of the best ways to honour your friends is by giving them a gift that helps others.  

Making a small donation in their name to an organization that supports issues they care about is a great way to show your friend that you see them and support their passions. No matter what amount you donate in their name, your donation will make a difference.  

Here are additional types of nonprofit organizations you could consider donating to this holiday season instead of purchasing physical gifts: 

• Animal shelters 

• Community or Religious foundations 

• Women’s shelters and organizations 

• Environmental organizations 

Experiences as Gifts 

Making memories with your favourite people this holiday season is a gift that will last forever! Instead of spending money on a physical item, consider giving experiences to your friends and loved ones.  

Of course, experiences like concerts or sporting events are expensive. However, there are other experiences you can give that are more affordable.  

Here are a few ideas for experiences and events instead of giving a physical gift: 

• Museums 

• Free holiday concerts 

• Art classes for painting, pottery, or scrapbooking 

• Holiday movie marathon with cups of hot chocolate 

• Building a gingerbread house with an inexpensive kit from the grocery store 

EXPERT GIFTING TIP: Explore the programs offered at your local library. Many libraries partner with local attractions like museums to offer free tickets to library card holders.  

Your Shopping Partner 

A Luminus credit card is your perfect helper for holiday shopping. Explore our limited-time special offers for new members here.