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Holiday Debt

Avoid Going Broke During the Holidays

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5 Ways You Can Enjoy Christmas & Save Money This Year

It’s once again almost time for seasonal cheer, joyous celebrations, and for many people, endless holiday spending. From vacations to gifts to parties, it’s easy to lose track of your expenses. While there are so many reasons to enjoy the season, you will be far less stressed if you celebrate Christmas on a budget.

The good news is, saving money during the holidays is possible! You don’t have to go into debt to have a smashing good time. Read on to discover ways to avoid going broke during the holidays — but still enjoy every minute of it.

1.   Create a Holiday Budget

Some people set aside savings throughout the year for a holiday fund. If you’re one of these financially-savvy people, congratulations! You will likely make it through the season without money troubles.

If you didn’t think of this sooner, try it out next year.

For now, the next best thing to do is to create a reasonable holiday budget — one that will still let you enjoy the season! It’s an ideal way to avoid overspending.

First, take a good look at your finances and decide on an amount you can afford to spend. Doing so can prevent you from cutting into your home, emergency, and retirement funds. Consider all the things you want to spend on, including:

  • Vacations

  • Gifts

  • Wrapping materials

  • Cards and postage

  • Parties

  • Home decorations

  • Clothes

  • Charity donations

Don’t panic if you later discover your budget won’t cover your whole list. Instead, set your priorities. For instance, you can do away with the iPhone 13 Pro Max purchase if your one-year-old iPhone 11 still works perfectly. You can also skip the giant inflatable Santa-and-reindeer set if it’s too expensive.

Remember that your budget isn’t set in stone. You can adjust it accordingly to address your needs.

2.   Take a Holiday Job

If you find that you can’t keep up with your holiday spending, consider taking a temporary part-time job. After all, Christmas is usually a busy time for most businesses. Here are some of the most fun seasonal jobs:

  • Personal gift shopper: This job involves shopping for other people. Retail establishments often require clothes, accessories, and gift shoppers during the holidays.

  • Gift wrapper: If you have a knack for the arts, you can work at retail stores wrapping customer purchases. These workers often receive ample training on using wrappers, ribbons, and tags.

  • Customer service representative (CSR): Many companies hire CSRs during high-sales seasons. As a CSR, you have the option to work in-store or at home via phone or chat.

  • Santa photographer: For every store Santa you see, there’s a photographer opportunity opening waiting to be filled. If you’re good with kids and have the photography, editing, and organizational skills, this position could be a viable option.

  • Snow removal driver: As the Starks fondly say, winter is coming. Snow removal companies in snow-laden areas often hire seasonal help to prepare for the storms. If you’re from Minneapolis, Milwaukee, or Chicago and have the license and equipment experience, this job is ideal for you.

3.   Make DIY Christmas Gifts

One of the easiest ways to enjoy the spirit of Christmas on a budget is to make DIY gifts. If you spend anywhere between $15 – $25 per gift, this list of $10 (or less) homemade gift ideas will help you save massive amounts.

There are many lists like this online. Check them out for some holiday inspiration. Here are some of the most useful ones:

  • Lemon sugar scrub: This beauty essential recipe promotes smooth skin and fights aging. You can use it on your face and body. Aside from an eight-ounce container, you only need three ingredients to make it: sugar, coconut oil, and lemon essential oil.

  • Sugar cookies: If you have an oven and baking essentials like butter, sugar, and eggs at home, you can bake for your friends! Nobody would say no to a batch of Christmas-themed sugar cookies.

  • Beeswax candles: This DIY hack is perfect for you and the kids. These candles are super affordable and easy to make. You only need beeswax sheets and wicks to produce them. Feel free to add ribbons and bags for packaging.

  • Custom soap bars: Thrifty people, unite! This soap bar recipe guarantees maximum savings. For only $1 per bar ($10 per batch), you can create colorful gifts for your friends and neighbors.

  • Yoga mat spray: Seriously, have you ever cleaned your yoga mat? This yoga mat cleaner tutorial will remind your health-conscious loved ones to keep theirs in tip-top shape. With witch hazel, essential oils, some water, and an amber bottle, you can earn the top spot in this year’s list of the best gift-givers.

4.   Start New Traditions

For those lucky enough to spend Christmas with your family, you and your loved ones can save massive amounts if you start new traditions.

For example, you can arrange an exchange gift activity. If you usually spend the holidays with ten other people, spending $25 per gift would equal $250. Here’s an idea for saving money during the holidays:

  • Ask everyone to create a wishlist of five items worth $100 and below.

  • Draw lots digitally to assign one gift-giver to every family member.

  • Have everybody pick one product from the list and buy it.

With a new exchange gift tradition like this, everybody will go home a winner. Imagine, everyone saves money and receives a valuable gift instead of random items they might not even like at all.

However, if you feel like nobody wants to spend on gifts, turn your get-together into a game night with a door charge. For instance, you can charge $20 for all attendees to use as a winner-takes-all prize for a night of charades, trivia, and Minute to Win It games. Feel free to build teams and create rules as you wish.

5.   Remember the Purpose of Christmas

Christmas is traditionally a religious holiday commemorating the birth of Jesus Christ. Remember that it’s not just about luxurious vacations and lavish gifts. Instead, it’s a time of joy, peace, and great tidings.

If you can’t spend a lot of money on gifts this year, don’t underestimate the power of your presence. Your time means more to your loved ones than any material thing money can buy.

Keep Your Finances in Check at All Times of the Year

The holidays should be a time for cheer, but remember that no celebration should cause you financial distress. If you plan accordingly, you can have the time of your life during the Christmas season and still keep your finances in check.

If you want to learn more about being money-savvy, check out Money Fit’s free online courses. It’s time to start your journey toward a secure future.

About the Author

Picture of Rick Munster

Rick Munster

Rick Munster is a personal finance expert and author with over 21 years of experience in the credit counseling industry. He currently serves on the board of directors for the Financial Counseling Association of America and has written over 200 articles on personal finance. Rick's expertise has been recognized by several prominent online organizations, which have quoted him on issues related to credit counseling, debt management, and financial education. With more than 20 years of experience at Money Fit, a non-profit credit counseling organization, Rick has established himself as a trusted authority in the field of personal finance.
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NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

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You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

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Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

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Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

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The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.
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Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

Close

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).