Black Friday is almost here, kicking off the busiest shopping season of the year. On average, people plan to spend roughly $900 on gifts this holiday season, and that total often doesn’t include travel, hosting, decorations, or other holiday expenses. Without a plan, those extra costs can quickly lead to debt.
Holiday credit card debt is a significant problem because interest and finance charges can accumulate if you’re unable to pay off your balance immediately. Carrying holiday balances can damage your credit score, inflate your debt-to-income ratio, and create stress long after the season ends.
The holidays are meant to be about connecting with the people you love—not about going into debt to buy presents. This year, let Black Friday become the start of a new tradition: enjoying the season without spending more than you can afford.
Tips for saving money this holiday season
Create a budget before Black Friday
Begin by setting a clear, realistic holiday budget before you start making shopping lists. Review how much you already have saved, estimate your likely expenses, and decide what you need to do to stay within your limits.
Consider including these items in your budget:
- Gifts
- Transportation and travel
- Food for parties and gatherings
- Postage for cards and packages
- Holiday cards
- Wrapping supplies
- Decorations
Make a list of everyone you’ll buy for, the events you’ll attend, and any travel you’ll do. Comparing this year’s plan to your past spending often reveals areas where you can cut back.
Use a cash budget for holiday spending
Setting aside a fixed amount of cash for holiday purchases forces discipline: you can see exactly how much remains and are less likely to make impulse buys. Carry only part of your cash at a time to avoid overspending, and plan ahead for expenses you can’t pay in cash, like some travel bookings.
Give fewer gifts
You don’t need to buy gifts for everyone. Reducing the number of gifts you give lets you put more thought into the ones you do give, and it keeps your wallet healthier. Many families are shifting toward a minimalist approach—focusing on experiences and meaningful interactions rather than quantity of presents.
Don’t fall for every Black Friday deal
Retailers use sales to attract shoppers year-round, and not every marked-down item is a true bargain. Some stores raise prices before a sale so the discount looks larger than it really is. Do your price research and comparison shop to make sure you’re actually getting a good deal.
Get cash back on your shopping
Use cash-back programs and rebates for online purchases to stretch your budget further. These services allow you to earn a small percentage back on purchases you would make anyway—an easy way to save during busy shopping periods.
Look for ways to cut back now
If you want extra holiday spending money without adding debt, review your regular expenses and trim what you can. Even modest savings add up over time.
Some common ways to free up cash include:
- Cancel cable or switch to a cheaper package
- Choose a more affordable cell phone plan
- Eat out less
- Negotiate car and home insurance premiums
- Pause or cancel underused gym memberships
- Cut unnecessary subscriptions
- Carpool when possible
- Do basic haircuts at home
- Make coffee at home instead of buying it
Find ways to earn extra holiday money
If cutting expenses won’t cover what you need, consider earning extra income. Seasonal part-time jobs and side hustles can help you fund gifts and festivities without relying on credit.
Typical holiday or short-term earning ideas include:
- Seasonal retail or delivery jobs
- Pet sitting or dog walking
- Snow shoveling and yard work
- House cleaning
- Rideshare driving
Online opportunities—such as completing surveys, earning gift cards, or using rewards sites—can also add up. While they won’t replace a full-time income, they can provide useful extra cash for holiday spending.
Use Secret Santa or gift exchanges
Organizing a Secret Santa or drawing names within family and friend groups reduces the number of gifts each person buys and allows you to spend more thoughtfully on one special gift rather than many smaller ones. Decide on the exchange before Black Friday so you know exactly who you’re shopping for.
Start shopping early
Shopping ahead of time reduces stress and often saves money. Spreading purchases across months helps you avoid last-minute impulse buys and gives you the flexibility to wait for genuine deals instead of scrambling on Black Friday.
Prepare for next year
After this holiday season, use what you learned about your spending to plan for the next year. Set aside a small amount regularly—weekly or monthly—to build a holiday fund. Even modest, consistent contributions can prevent future holiday debt.
Remember the true meaning of the holidays
No matter which holidays you celebrate, the best part is time spent with loved ones. You don’t need to spend a lot to create meaningful memories. Consider low-cost ways to celebrate together, such as hosting a potluck, having a baking day, planning an outing instead of exchanging gifts, or scheduling video calls with distant family.
Time and attention are often more valuable than anything money can buy. This season, focus on experiences and connections rather than unnecessary spending.
How much will you spend this holiday season? What are your Black Friday plans?