40+ Ways to Celebrate Christmas on a Budget

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40+ Ways to Celebrate Christmas on a Budget

Looking for ways to celebrate Christmas on a budget? Check out this huge list of ideas for Christmas gifts, activities, and more!

Readers’ questions: “What advice do you have for families struggling financially with the upcoming holidays? Any ideas for low-budget celebrations and gifts?”

How to celebrate Christmas on a budget

We posted this “Reader Question” on our Facebook page and were so blown away by your responses that we decided to turn it into a full blog post!

If you find yourself stressed out about overspending, we’ve got a range of helpful tips to keep your budget under control this Christmas!

Budget Christmas Gift Ideas

1. Buy second-hand gifts! Try buying books, games, and puzzles at thrift stores or used bookstores. Facebook Marketplace is also a great way to get great second-hand gifts.

2. Draw the name So everyone only needs to buy one gift.

3. Conduct a white elephant gift exchange There you can give away some silly stuff you already own. (Or try one of these cheaper alternatives!)

4. Host a scavenger hunt for Christmas morning. Children must complete a task or solve a puzzle to get the next clue. You don’t have to buy too many gifts to make the present moment last longer and be more fun!

5. Plan experiences, not gifts —Memberships to local zoos, science museums, nature centers, and more—there are some fun places to take your kids to year-round. (Check out this list of 145 non-toy gift ideas!)

6. Make handmade gifts — Dough decorations, homemade mixes, recipes for all your family’s favorite recipes, photo albums of things you’ve done together.

7. Go on a shopping spree at quirky second-hand stores (as long as you can afford it) — Let them choose something they like within the budget you set.

8. Shop early and the gift box can be used all year round! Collect Bath & Body Works products on sale throughout the year to give as gifts. Use Kohl’s cash to buy gifts (candles, socks, cute hand towels, etc.) and don’t forget those new, tagged or new-looking items you found at the thrift store! This is especially helpful when planning Christmas gifts and gifts for co-workers.

9. Give the gift of perishable food! One person said she always gave her neighbor a glass pie plate with homemade chicken pot pie in it. They can freeze it or bake it immediately and keep the pie plate. (There are lots of easy neighbor gift ideas here!)

10. Gift cards are available for store sales. Target often offers $5 gift cards when you purchase a certain amount of product or spend a certain amount of money. Save gift cards and use them on birthdays and Christmas – it’s a great way to do Christmas shopping on a budget!

11. Make a plate of Christmas gifts Or friends and family’s favorite casserole.

12. Stick to the classic four gifts (want, need, wear, read) Help yourself avoid overspending.

13. Every time you’re in the store, grab 1-2 gift cards And load up any funds you have extra room in your budget – even if it’s just $10 or $20. You can keep them all year round and then use them for Christmas shopping.

14. Take your kids to the dollar store Shopping for parents, siblings and grandparents. They’ll love it and it’s cheap!

15. Plan a no-gift exchange for a friend or family member — Wrap lightly used items or re-gift items (make sure your gift wrapping is reused, too). So fun!

16. Create a Christmas savings account — Small amounts of funds are automatically transferred every pay period. It’s like a regular monthly bill, and then your Christmas budget is funded when the holidays roll around!

17. Only stockings. See this post for affordable Christmas stocking ideas for the whole family (and these posts on Christmas stocking ideas for women and men ).

18. Or, skip stocking entirely If they have become a big expense.

19. Make tree socks for under five bucks or a dollar!

20. Buy gifts for the kids — Talk to family and friends to see if everyone can agree. (Visit this article for frugal gift ideas for toddlers.)

21. Or, decide not to participate in an extended family gift exchange (Be polite but firm) and only give gifts to those in your immediate family.

22. Take advantage of local “Buy Nothing” groups — You never know what you might find!

23. Make a specific budget with friends/family And agree to stick to everyone’s budget.

24. Buy a gift for each person.

25. Give away event coupons for the upcoming year.

26. Take turns opening gifts one by one Truly appreciate the gift and absorb the experience of opening it.

27. Find creative ways to fund your Christmas budget throughout the year. (Our Growing Your Christmas Budget Cheat Sheet is a great place to start!)

Peanut butter cookies are served on a cookie sheet with twine and holly berry branches on the side.

Affordable holiday activities

1. Find free Christmas activities In the area where you live. Communities and municipalities often host free events, including plenty for children.

2. Plan a Christmas movie night at home — Choose a free movie (or choose a DVD from the library), pop some popcorn, and make hot chocolate!

3. Find local free Christmas shows — Festivals, concerts, church Christmas plays, parades, etc.

4. Host a cookie decorating party (Just with your family or with friends and neighbors).

5. Make hot chocolate at home, bake some specialty treats, and drive around looking at the lights. If your town has a large tree, check that out too!

6. Decorate the gingerbread house At home! Use discounted items/items with coupons to make it cheaper.

7. Plan some simple “One Minute to Win” games Create activities around the house using supplies you already have.

8. Plan a family game night There are Christmas lights, Christmas music and Christmas gifts.

9. Ask your family to make a holiday wish list Find free or cheap things to do (you can even Google for suggestions) and then make a conscious effort to spend time together.

10. Sing Christmas carols With your neighbours, friends or family.

11. Read a children’s Christmas book every night in December. Check them out from the library to make them free. (Or wrap up a book you already have and let the kids open it every day to make it even more special!)

12. Create a Christmas Candy Countdown Chain (Whole month, 12 days or any time you want).

13. Plan a “big meal” for the day for breakfast or brunch Because eggs and pancakes are usually much cheaper than traditional holiday foods. You can even put it in your fancy dishes to make it even more special!

14. Collect children’s Christmas books And only allow your children to read and watch them during Advent (or just during the Christmas holidays) so they feel extra special.

15. Let the kids decorate however they want — They can be “in charge” of it all for a year, which means less work for you, more fun for them, and lots of great stories to tell for years to come.

16. Find ways to bless others — Be like the “elves” and send small gifts, notes and cards to your neighbors or the elderly at church throughout the season.

17. Send handmade cards Use scraps of craft materials you already have at home and include a simple 4″ x 6″ snapshot of your home (instead of an expensive holiday card). Make this a family craft activity for added fun!

18. Advent Calendar of Events! One person said her family created a “whatever you want” calendar. Punch holes in envelopes and number them 1-25, hang them on a string, write down one activity each day that the family has time to do, and put it in the envelope. It makes it manageable and the kids love it.

Remember, Christmas isn’t about material things – keep it simple and have fun!