Seven Easy Ways to Start Saving for Christmas
- Decide how much you want to spend on holiday expenses and open a Christmas savings account.
- Try a savings challenge to find extra money.
- Think outside the box to earn more cash and start your shopping early.
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The holidays are a time to celebrate. It's a great idea to go into the festive season with a plan to save and spend your money wisely, avoiding the need for debt relief next year.
There are plenty of ways to start saving for Christmas this year that don’t bring on financial stress and there’s no time like the present to start.
1. Open a High-Yield Savings Account
If you don’t already have a high-yield savings account, consider this your sign that it’s time to open one. The highest rates are often offered by online-only banks. You’ll get the benefit of top-notch mobile apps and technology to monitor and grow your savings.
Many of these accounts also offer the chance to create multiple sub-accounts, so you could designate one of them your official Christmas Savings. While you’re at it, create one for your emergency fund, too—an emergency fund is the gift you give yourself that helps you all year long.
Having a set place to keep your Christmas cash separate from your checking account and the rest of your savings makes it easier to see how much you have, and avoid accidentally spending the money on something else.
Automate contributions to your holiday account (it’s good to aim for a set amount on a weekly or monthly basis). If saving becomes automatic, you don’t have to think about it, and can’t forget to add money.
2. Create a Holiday Savings Budget
Do you know how much you typically spend on the holidays? Now is the time to find out how much you spend on gifts, food, travel, holiday activities, and decor.
Take a look at your credit card and checking account statements from last year, and try to create a ballpark estimate of how much you’ll need to save to be ready for Christmas this year. Divide that amount by the number of weeks or months you have to save, to give yourself smaller and more manageable goals to reach.
Also consider the state of your finances in the wake of last year’s holiday hoopla—did you wind up with credit card debt? If so, dial down the plan this year. If that’s not possible, or you just don’t want to (and that’s fair), the rest of these tips could help you increase the dollar figure in your Christmas savings account before the time comes to spend it.
3. Trim Your Spending to Free Up Cash
Is that your budget collecting dust over there? If you want to change your spending habits to help you start saving for Christmas, you need a budget. Take a look at your existing budget, or sit down to create one if you’re currently going without.
Once you know how much comes in and where your money goes every month, you can look for places to trim your spending. Here’s a few ideas to start:
If you eat out three times a week, try cutting back to once or twice. It’s cliche to say “cook at home,” but doing so really can save you money. Plus it’s fun to experiment with new recipes.
Got a streaming subscription you use very lightly or not at all? Cancel it—you probably won’t even miss it. (And if you do, you can resubscribe.)
Instead of buying new clothes, dig into your closet in search of pieces you may have forgotten about. If you need some fresh looks, organize a clothing swap with friends.
4. Try a Savings Challenge
Savings challenges are all over social media. Turning your Christmas savings into a game can make the process more fun. Here are a few ideas to consider—and you can route the cash you save directly into your holiday funds bank account.
Round-up savings
Every time you spend money, round up to the next whole dollar and transfer the difference to your Christmas savings account. If your grocery tab comes to $90.12, send $0.88 to your savings. Some banks offer round-up savings. When you research high-yield savings accounts, maybe you’ll find one that offers this perk.
Just a dollar a day
Saving $1 per day sounds deceptively simple, but if you do it for a full year, you’ll end up with $365. You can customize this to meet your needs, too. Say you have six months to reach your Christmas savings target of $800. If you can manage to put aside about $4.50 per day (or about $31 per week) over those six months, you’ll reach your goal.
No-spend challenge
It’s probably unsustainable to cut out all your discretionary spending in service of saving for Christmas, but you can customize this idea. Try designating one or two weekends per month as “no-spend weekends,” and vow not to spend on anything but essential purchases. Instead of spending money on dinner out and a movie with friends, host a potluck where everyone brings a dish, and then pick a movie from a free streaming service like Tubi.
5. Take on a Side Hustle
The best way to make extra money is through opportunities that you can fit easily into your schedule. There are a few ways to do this.
Apply for seasonal jobs
There are plenty of retailers who look for extra staff members during busy seasons. You could spend just a few hours working each weekend to build up your holiday savings funds. Are you qualified to be a lifeguard at a pool? Could you stack boxes into a delivery truck? Look for seasonal jobs that are close to home, and that you would enjoy doing for a few hours at a time.
Consider the gig economy
If you want more flexibility, a gig job could work better for you. Consider driving for a ride-hailing or food delivery app for a few hours every week, or hire yourself out to clean houses or assemble furniture on TaskRabbit. You can also freelance using an existing skill. Writers, graphic designers, and even pet sitters have the opportunity to make extra cash—advertise your services on LinkedIn, Upwork, or in the case of pet sitting, check out the Rover app.
Sell your stuff
Get rid of unwanted items in your home and turn them into cash if you can. This can work especially well if you sell old holiday decor right before the holiday. People love to score a good deal, and you double up by also decluttering your place.
If you’re getting started early (say, in the summer), hold a yard sale. Some of your neighbors might also be looking to downsize, and if you can organize a multi-yard sale on your street, you’ll likely draw in more shoppers.
6. Get Creative
Life’s too short for boring plans. Here are a few creative and fun ideas that could put extra cash in your pocket for the holidays.
Be a decorator for hire
Love hanging lights and setting up indoor and outdoor displays? Advertise yourself in your local area as a Christmas decorator for hire. If you’re comfortable working on a ladder and enjoy striking the balance between festive and eye-catching, this could be the gig for you. You could stockpile some cash starting right after Halloween, leading right up to Christmas.
Rent out your land or your pool
If you live out in the country and have a few acres of land, consider listing it on Hipcamp. Hipcamp is sort of like Airbnb for unique spots on private land where visitors could camp out. If you don’t have a big property but do have a swimming pool, you could earn some green by renting it out by the hour on Swimply. Your own neighbors might be looking for a convenient place for their kids’ swim lessons right now.
Give companies feedback on their products
If you enjoy technology and testing new products and website features, there are companies who will pay for your services. You can sign up with UserTesting to find them.
7. Don’t Wait Until the Last Minute
In addition to starting to save for Christmas early, you can also start your shopping early. There is no better time than the present for presents!
Start by making a list of prospective gifts for loved ones, and scout out sales and coupons that could save you money. Compare prices between retailers to find the best deal on the items you want. Create online wish lists with Amazon or Etsy so you can keep an eye on prices over time.
In addition to saving money on the gifts themselves, shopping well ahead of the holidays could also help you save money on shipping costs if you’re ordering items online. You can opt for the cheapest (and slowest) shipping option if you still have plenty of time before the holiday. By planning ahead and getting your shopping out of the way early, you can breathe easier as we head into the holiday season. You can’t put a price on that benefit.
Ready to start saving for Christmas? Pick a place for your cash (a high-yield savings account really is the best place), trim spending, increase your income, and have a jolly time with it.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during May 2025. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
Debt relief seekers: A quick look at credit cards and FICO scores
Credit card usage varies significantly across different age groups, reflecting diverse financial needs and habits.
In May 2025, the average FICO score for people seeking debt relief programs was 593.
Here's a snapshot by age group among debt relief seekers:
| Age group | Average FICO 9 credit score | Average Credit Utilization |
|---|---|---|
| 18-25 | 574 | 81% |
| 26-35 | 580 | 80% |
| 35-50 | 586 | 77% |
| 51-65 | 593 | 74% |
| Over 65 | 611 | 68% |
| All | 593 | 74% |
Use this data to evaluate your own credit habits, set financial goals, and ensure a balanced approach to managing credit throughout your life.
Student loan debt – average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average student debt for those with a balance was $46,980. The percentage of families with student debt was 22%. (Note: It used 2022 data).
Student loan debt among those seeking debt relief is prevalent. In May 2025, 27% of the debt relief seekers had student debt. The average student debt balance (for those with student debt) was $48,703.
Here is a quick look at the top five states by average student debt balance.
| State | Percent with student loans | Average Balance for those with student loans | Average monthly payment |
|---|---|---|---|
| District of Columbia | 34 | $71,987 | $203 |
| Georgia | 29 | $59,907 | $183 |
| Mississippi | 28 | $55,347 | $145 |
| Alaska | 22 | $54,555 | $104 |
| Maryland | 31 | $54,495 | $142 |
The statistics are based on all debt relief seekers with a student loan balance over $0.
Student debt is an important part of many households' financial picture. When you examine your finances, consider your total debt and your monthly payments.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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Author Information
Written by
Ashley Maready
Ashley is an ex-museum professional turned content writer and editor. When she changed careers, she was finally able to focus on turning her financial situation around. She went from deeply in debt to homeowner in two years. Ashley has a passion for teaching others about better living through better money management.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
How much do people spend on Christmas expenses?
According to the National Retail Federation (NRF), 2024 winter holiday expenses were projected to reach $902 per person on average. You can certainly spend less than this, especially if your holiday celebrations don’t involve travel and you’re willing to set a strict budget for gifts, entertainment expenses, and holiday food.
Should I use a credit card for my Christmas shopping?
Only use a credit card for holiday expenses if you’re confident that you can pay them off in short order (and preferably before interest charges kick in). Using a credit card for holiday purchases could help you earn rewards like travel points or cash back, but interest charges could quickly cost more than the value of those benefits. If you’re developing the habit of sticking to your budget or just want to keep things simple, shop with cash or your debit card.
How can I spend less on gifts for friends and family?
Try organizing a Secret Santa gift exchange. Everyone participating draws a name out of a hat, and only buys a gift for that person. You can set limits for how much money can be spent, and if everyone offers a few gift ideas for themselves ahead of time, this can be an easy way to spread joy and save money.