6 Ways To Master The Holidays When You Are Broke AF

It’s the most wonderful time of the year. And the most expensive. According to the National Retail Federation, Americans spend an average of over $950 billion during the holiday months of November and December, with the average person spending up to $975 on gifts alone.

It’s the highest spending period for most Americans this year, but it’s coming at a time when most Americans are also experiencing the impact of inflation, and the current financial climate is straining many people’s pockets this holiday season.

If you’ve crunched the numbers and discovered the only gift you can afford to give your loved ones this year is an apology and a smile, don’t stress. There are so many different ways to ring in the holidays that won’t wring out your bank account.

1. Ignore the hype

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First things first, there’s a reason why this is the highest spending time of the year. Most traditional holiday celebrations include some sort of exchange of gifts and there’s a lot of pressure to fulfill that obligation. Add to that, the holiday shopping season is starting earlier and earlier thanks to online stores, creating more pressure to spend money you don’t have.

Don’t get pressured or suckered into flashy deals like Black Friday and Cyber Monday and don’t go into debt in an effort to play Santa Claus. Strengthen your willpower, set your boundaries, and shop smart. Check out local stores or artisans. Look for coupon codes or sales. And fight the urge to overspend out of a sense of tradition. Remember money isn’t what matters this time of year; it’s celebrating love and traditions with family and friends.

2. Make hand-crafted gifts

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Avoid big box stores and online sales in general and create something personal from the heart to gift to loved ones. If you’re crafty with crocheting and painting, create a work of art for friends and family to hang on their walls. Bake Christmas cookies or fruit cake to share with coworkers. Write a poem expressing your feelings or make a card by hand with a sweet sentiment inside to show someone how much you care. When you make a gift by hand, you can always ensure that your loved one gets exactly what they want or need.

If you’re not good with DIY, try shopping second hand or at thrift stores. That way you can cut back on waste and give something used a second life. It doesn’t always matter how much you spend on a gift, what matters is the effort and thought you put behind it.

3. Organize a gift exchange

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Secret Santa or White Elephant (a game where partygoers choose from a selection of donated, wrapped gifts with the option to trade with other guests) are excellent ways to spread holiday cheer without breaking the bank. You usually only have to buy one gift to participate and expectations are typically low. Gift exchanges aren’t about having the best present, it’s all about having the best time.

4. Spend quality time with friends and family

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This is the perfect time of year to get cozy with the ones you love. If you don’t have to travel far, snuggle up with your kiddos, nieces, and nephews and watch a classic holiday movie while eating homemade cookies and treats. This time of year there are usually winter themed events going on in your community from ice skating to Christmas light displays to taking pictures with Santa. Try making memories this holiday season instead of making a mess with wrapping paper.

5. Host a holiday potluck

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Another great way to spend time with family and friends is to share a meal together. Everyone brings their own food or drink to share so all you and your guests have to do is show up and have a good time. It also creates an opportunity for guests to go around and share what they’re gratefully for (this year, you can be grateful that your bank account isn’t in the red).

6. Set a spending limit

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If you and your people have decided to exchange gifts this year, make it easy on yourself by suggesting a spending limit. No gift shall exceed whatever amount you all decide to set. This ensures that everyone is on the same page and there are no misunderstandings or disappointments. And even if you’re not doing an exchange, remember you can (and should) set spending limits on yourself. Set a limit on how much you’re willing to spend on gifts and travel this year and don’t go past it. You can use this limit to plan ahead for next year and create the budget and savings plan you’ll need to get through the holidays.

7. Be honest

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No matter what you decide to do this season, approach holidays in a spirit of honesty. Be real with your friends, family, and partners and let them know what your budgetary restrictions and needs are as winter celebrations approach. It’s the season of giving but there are many ways to give. Rest assured that you are already a gift in the lives of your loved ones and you don’t need to blow your budget just to prove you care.

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