The following is a sponsored collaboration with Rakuten, a popular cash back app. You can sign up for Rakuten and receive a $50 sign-up bonus when you make a qualifying purchase.
The holiday season is one of the happiest times of the year, but it can also be costly. Between gifts, decorations, travel, and meals, it’s easy for expenses to pile up. The good news is you don’t have to break the bank to celebrate. With a few smart strategies, you can save money while still making the season memorable. Below are practical, effective tips to help you keep holiday spending under control, starting with a favorite money-saving tool—Rakuten.
How to Save Money This Holiday Shopping Season
These are some of the best ways to save money during the holidays while still enjoying meaningful celebrations.
1. Get cash back on your holiday shopping with Rakuten
Rakuten is a free cash-back site and app that rewards you for shopping at thousands of popular stores. When you shop through Rakuten, partner stores pay a commission and Rakuten shares part of that as cash back. Cash-back rates vary by retailer, typically ranging from around 1% to more than 15% on select items. Over multiple purchases, those percentages add up—especially during the holidays.
You can access Rakuten via their website, mobile app, or browser extension. The extension is especially useful because it automatically finds available deals and applies coupon codes for you. Rakuten makes getting paid simple: choose PayPal or a mailed check, and cash back is deposited on payout dates. New members can also qualify for a limited-time sign-up bonus when they make a qualifying purchase.
Actionable Tip: Before you buy, check whether a retailer offers cash back through Rakuten. Use the browser extension whenever you shop online to capture savings automatically.
2. Create a holiday budget
The single best way to avoid overspending is to create a clear, realistic budget. Start by listing all anticipated holiday expenses: gifts, decorations, food, travel, wrapping, and small items like stocking stuffers. Add up the total and then divide it into categories with spending limits for each. For example, if your gift budget is $500, decide how much you’ll allocate per person.
Carrying your budget with you—on paper or your phone—helps prevent impulse purchases. When temptations arise, refer to your pre-set limits to stay on track.
Actionable Tip: Write down your budget categories and limits, then check them before every purchase.
3. Shop during sales and plan ahead
Take advantage of holiday sales like Black Friday, Cyber Monday, and early-season promotions. Many retailers also run periodic pre-holiday discounts, so start shopping early to find the best prices and avoid last-minute markups or sold-out items. Price-matching policies are worth checking too; some stores will match a competitor’s lower price if you show proof.
While sales are great, stick to your shopping list to avoid buying items you don’t need just because they’re discounted.
Actionable Tip: Create a calendar of key sale dates and plan to purchase specific items on those days to minimize impulse buying.
4. Stack coupons and promo codes
Combining coupons, promo codes, and cash-back offers can produce significant savings. Many retailers allow coupon codes to be used in addition to cash-back offers, and shipping promotions can further reduce the total cost. Using a browser extension or quickly searching for available promo codes before checkout often yields additional discounts.
If you shop in-store, check for digital coupons you can show on your phone so you don’t have to print anything.
Actionable Tip: Always look for a promo code and confirm whether cash back applies before completing a purchase to maximize savings.
5. Give thoughtful or DIY gifts
Thoughtful or handmade gifts often carry more meaning than expensive store-bought items. DIY gifts—like photo books, baked goods, knitted scarves, or handcrafted ornaments—can be budget-friendly and memorable. Experience-based gifts, such as offering to babysit, cooking a special meal, or planning a family game night, are also low-cost and deeply appreciated.
Start planning DIY projects early so you have time to gather materials and create quality gifts without the stress of last-minute shopping.
Actionable Tip: Make a list of DIY and experience-based gift ideas that match your skills, then begin preparing now to avoid holiday rushes.
6. Avoid buy now, pay later services
Buy Now, Pay Later (BNPL) services can make purchases feel more affordable by splitting payments into installments, but they can also encourage overspending. Because payments are spread out, it’s easier to lose track of total costs and accumulate multiple payment plans across retailers. Missing payments may mean fees and potential credit impacts.
Instead of relying on BNPL, stick to your budget and consider saving up for big-ticket items. If you’re tempted by BNPL, calculate the full cost of the item and review your existing payment obligations before committing.
Actionable Tip: When offered BNPL, pause and total your outstanding installment plans to determine whether you can truly afford another purchase.
Enjoy the Holidays Without Overspending – Summary
By using cash-back tools like Rakuten, creating a clear budget, shopping sales thoughtfully, stacking coupons, and choosing meaningful, low-cost gifts, you can celebrate the season without financial stress. Prioritizing experiences and planning ahead will help you make the most of every dollar while keeping the holidays joyful and memorable.
Consider signing up for Rakuten to collect cash back on holiday purchases; it’s free to join and can add meaningful savings. If you qualify for a limited-time sign-up bonus on your initial purchase, that’s an extra boost for your holiday budget.
What’s your favorite way to save money during the holiday shopping season?