Holiday Shopping Tips—On a Budget

When groceries cost more, interest rates are high and paychecks don’t seem to go as far as they used to, it can be tough to plan for the holidays. Everyone wants to get their loved ones the perfect gift, but how do you do that on a tight budget? Shopping doesn’t have to drain your bank account. Shop smart with these 8 tips for shopping on a budget this holiday season.

1. It starts with your bottom line

The first thing to do when looking at your finances in the run-up to the holidays is to make a budget. Before the holiday season even starts, pick a total amount of money you’re willing to spend. Don’t only include gifts. Add travel expenses, decor, food and anything else you regularly spend money on toward the end of the year. Don’t forget to give yourself some wiggle room for emergencies or last-minute gifts.

Once you have your budget set, it’s essential to stick to it. Save your budget as a note or spreadsheet on your phone or tablet so you can mark down what you buy as you’re shopping. Some budgeting apps even connect directly to your bank account and will alert you to your spending habits. By sticking to your budget, you’ll empower yourself in the long run by saving money and easing the stress of having too many options. 

2. Make a list and check it twice

During the holidays, you might feel pressured to get gifts for everyone you know. If you’re on a strict budget, make a list of the most important people for whom you truly need to shop this year. Focus on close family, friends or people who really make a difference in your life. For those who didn’t make the cut, consider a lovely card or handwritten note to show you care.

Expand your list by adding what types of gifts your recipients would most enjoy. Are they a tech whiz who wants a new gadget or an adventurous type who would prefer an outdoor activity? Set a spending cap on each gift so you don’t go overboard for any single person. Doing this will make it easier to identify where you need to shop and avoid last-minute scrambles and overpriced impulse buys.

3. Don’t wait for a deal

It may feel tempting to wait to buy a gift until it's on sale, but you may actually be opening yourself up to panic shopping and the fear of missing out. Start shopping early and buy your gifts when you find them, rather than waiting for the price to drop.

If something you buy does go on sale shortly after you purchase, you may be able to get a price match from the retailer. Many retailers will refund you the sale price even if you didn’t purchase it during the sale period. They might also match another retailer's price. If all else fails, when you shop early, you have time to return the item and buy it elsewhere at the lower price.

4. Use every digital tool

The rise of online shopping has led to the creation of many tools and services that might help when you’re shopping on a budget. Price trackers allow you to view an item’s price over time so you can be sure you’re getting a good deal. Some will even email you when an item hits an all-time low. Check your favorite retailers to see if they offer promotional emails, which may deliver exclusive deals directly to your inbox.

Browser extensions like Citi Shop^SM can also help you save while shopping online. Citi Shop^SM automatically finds deals, coupons and discounts on stores across the web, exclusively for Citi^® cardmembers. You don’t have to waste time looking for coupon codes.

5. Mix in always-budget-friendly gifts

A great gift doesn’t have to be an expensive one. Consider giving a handcrafted gift that really shows how much you care. If you love to cook, make delicious holiday baked goods. More of an artist? Give a painting, comic or unique card. Knit a homemade pair of socks or a sweater. Consider your hobbies and interests and figure out how to use those skills in your gift-giving.

If you’re not so handy, there are still gifts that can fit within your budget year-round. Check your local thrift stores for clothes and toys at a discount. You might find next year’s style tucked in among the racks. Remember, when it comes to gifts, thoughtfulness will always trump cost.

6. Embrace the “one good gift” philosophy

Don’t fall into the trap of getting too many gifts, stretching both your budget and your attention too thin. One incredible gift that speaks to the receiver's lifestyle is worth more than several so-so stocking stuffers. For example, if you’re getting someone a bunch of seasonal candles, they may forget about them or never get around to using them. But if you get just one perfect scent from a favorite, high-quality brand, they’re more likely to remember you got it for them. Think quality over quantity and you won’t go wrong.

7. Don’t fall for faux sales

Retailers can be sneaky with their prices around the holidays. Make sure you do your research and figure out if that great deal is truly a great deal. Some retailers go so far as to subtly raise prices right before a sale, making it so the “deal” price is actually just the regular price during the rest of the year. Sometimes that price might be even higher than usual, making comparing prices across multiple stores essential.

Also keep an eye out for fake sales that seem like they’re expiring at any moment. Many times, that deal that’s “ending fast” may actually be happening every week in order to drive sales. Take a breath and ask yourself if you really need that gift before adding it to your shopping cart. A 30% discount on something you don’t need is still 100% more than you could have paid.

8. Remember the true meaning of the holiday

Everyone loves gifts, but at the end of the day, they’re just stuff. The real reason for the season is spending time with friends and loved ones to look back on the year and reflect on the future to come. Even the most incredible gift is secondary to the memories we make around the fireplace or at the dinner table. Make sure to take some time to live in the moment. The holidays only come once a year, after all.

Shop smart and save more this season

Shopping on a budget doesn’t mean you’re cursed to have a disappointing holiday season. As you can see, there are many ways to give meaningful gifts and celebrate the holidays without breaking the bank. Double-check your lists, use online tools like Citi Shop^SM and do your research before checking out, and you’ll be on your way to a memorable new year.

Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.