The past few years have been financially challenging for many families, especially parents navigating rising costs, job uncertainty, and stretched household budgets. As the holiday season approaches, the pressure to spend can quickly turn into debt, creating stress for families who are already working hard to stay afloat.

A recent Credit Karma survey found that 34% of Americans feel financially unprepared for the holidays and 50% are worried about affording gifts. We get it, mama.

Related: Mama, I see you making Christmas magic while stretching every dollar

But there are ways to have a magical holiday without feeling like you have to spend a ton of money. Here’s how:


Introduce new traditions

Look at the activities your family and friends do around the holidays to see which cost you money, and cut them out. You don’t need to participate in typical holiday activities like gift-giving and gathering for multiple parties (even if they are much smaller this year).

Instead, work with your family and close friends to think of new (free!) ways to celebrate the holidays. Maybe that means organizing a hike with friends (your own version of a Turkey Trot!) or playing board games. There are so many possibilities if you get creative.

Reduce costs by simplifying how you gather

Eliminating things like traveling, buying any hostess gifts, bringing any food for potluck meals and more can help cut costs down significantly. As the pandemic persists and gatherings are already being encouraged to be kept small, it may be best to have family and friends celebrate from the comfort of home. When you are joining virtually and are just making Thanksgiving dinner for yourself, you can cut down on almost every cost except your personal feast!

Related: A ‘3 gift Christmas’ can be magical & minimalist for kids

Look for creative ways to give low-cost or free gifts

Between parents, siblings, in-laws, friends and more,somehow each year, our lists seem to get longer. If you’re worried you won’t be able to afford gifts for everyone on your list, look for other ways to make the holidays special. Whether that means organizing a gift exchange so you’re buying for one instead of many, or you’re gifting your time or something that is free, there are always alternatives.

Delay giving gifts

Given that some of the best deals can be found after Christmas, consider postponing gift giving until after the holidays when you can buy certain gifts on sale. If pushing your gift exchange by just a few days or a couple weeks can end up saving you, it may be worth it.

Related: What holiday shopping can teach kids about personal finance

Set clear spending boundaries and talk about them early

One of the biggest sources of holiday stress is unspoken expectations. Before the season picks up speed, take time to set a clear holiday spending plan and communicate it early with family and friends. That might mean agreeing on gift budgets, switching to a Secret Santa-style exchange, or deciding together to skip gifts entirely.

If money feels tight this year, it’s okay to say so. Many families are feeling the same pressure, even if it doesn’t look that way from the outside. Having an honest conversation can relieve stress on all sides and help prevent last-minute spending that leads to regret in January.

For kids, this can also be an opportunity to model healthy financial habits. Talking openly about budgeting, prioritizing needs, and making thoughtful choices helps normalize money conversations and reinforces that holidays aren’t about spending more than you have.

Related: Genius mom rents a hotel room for herself to wrap Christmas presents in viral TikTok

Look for decor that can be saved and last longer or repurpose

For instance, if you’re looking to decorate with flowers this year, they can be costly and don’t often last more than a week or so. Consider buying flowers once that dry well, and decorating with dried flowers. You can often find flowers like roses and greenery at your local grocery store that still look great once dried and won’t break the bank. And, if you take good care of them, you can use them year-round. It’s tempting to buy new pieces but consider how simple and cheap craft supplies can make your existing vases and photo frames more festive. Spray paint does wonders to transform thrift store finds! This could be a great activity to spend time with your family.

Budget-friendly gift ideas that still feel special

Meaningful gifts don’t have to come with a high price tag. Often, the most memorable presents are the ones that show thought, time, or creativity rather than a big spend.

  • Gift experiences instead of things. A handwritten “coupon” for a movie night, a family hike, baking together, or a babysitting swap can feel just as exciting as a wrapped present.
  • Make it personal. Photo prints, framed notes, or a short letter explaining why you appreciate someone can become keepsakes that last far longer than toys or gadgets.
  • Give something useful. Cozy socks, books bought secondhand, pantry staples, or homemade treats can feel comforting and intentional, especially when thoughtfully packaged.
  • Create something together. Craft kits made from supplies you already have, a playlist curated for a loved one, or a shared project like planting herbs turn gifting into a shared experience.
  • Shop secondhand or local. Thrift stores, library book sales, and local makers often offer unique finds at a fraction of the cost, while supporting your community at the same time.

Choosing budget-friendly gifts isn’t about doing less. It’s about giving with intention, staying within your means, and protecting your family’s financial well-being long after the holidays are over.

This year is unlike any other, but planning ahead can make sure your family stays financially healthy.

A version of this post was published on November 20, 2020. It has been updated.