Last holiday season, many Americans took on debt, owing an average of $1,249 once the new year rolled around. As this year’s season of shopping approaches, there are a lot of strategies you can use to help you spend less and avoid a whole new pile of bills.

The fact is gift-giving, decorating your home for the holidays, and hosting loved ones doesn’t have to break the bank if you get creative and remain mindful about your money. Here are some ways to celebrate the holidays on a budget, protect your health and wealth, and end the season debt-free.

Pick a number and stick with it. Decide up front how much you can afford to spend on the holidays and then allocate those funds to gifts, parties, decorations, and more. Don’t forget to also include year-end gifts for teachers, tutors, your mail carrier, etc. If you try to wing it, you're more likely to blow your budget. 

Have a heart-to-heart with the people you normally exchange gifts with. It's likely you're not the only one trying to stay on a holiday budget this year. Agree to put a dollar limit on gifts, or maybe just buy for the kids. Another idea is to opt for a “Secret Santa” or “White Elephant” gift exchange so you’re each buying one gift instead of a gift for each person.

Cash in your credit card rewards. If you’ve accumulated points throughout the year, consider redeeming them for gift cards. You can then either give them as gifts, or you can choose gift cards for stores where you can purchase some of the holiday trimmings you need. That also goes for any travel rewards you may have – they can help offset the cost of visiting loved ones.

Be a frugal holiday host. Of course you want to put out a delicious and festive spread, but you can do so on the cheap and your guests will be none the wiser. Scan your grocery circulars for sales and coupons, and then plan your menu around what’s on sale. Save on sides and desserts by prepping yourself rather than buying pre-chopped produce or bakery items. And don’t hesitate to ask guests to pitch in and bring something to help take some of the financial pressure (and shopping/prepping stress) off of you, too. Finally, hit the dollar store for paper goods, serving platters, decorations, and more.

Get in touch with your crafty side. If you have a talent or hobby, whether it’s making things with your Cricut, knitting or photography, get to work on some DIY gifts and decorations. Not only will such gifts costs less, but they will be unique and more appreciated.

Don’t get caught up in wasteful spending. While you might have bought matching Christmas pajamas for the whole family, or sent out professionally printed holiday greetings in years past, these are examples of things you can probably skip if you’re on a budget. For holiday outfits, see if your friends want to do an exchange, or dress up clothing you already have with holiday accessories and colors rather than buying a whole new wardrobe.

Avoid pricey outings. Holiday stage shows and dinner parties can get pricey, but there are other fun traditions you can start that cost less. Pile the family in the car with some to-go hot chocolate and go see some Christmas lights. Go ice skating or sledding. Have a holiday-themed potluck party like Christmas Carol Karaoke, or do a cookie swap. 

Rework your budget for the holiday season. Are there things you can cut back on for a couple of months to free up some cash? See if you can pause a few streaming subscriptions, make lunches and lattes at home, and skip your weekly dinner out. This found money can help you cover those extra holiday expenses that sneak up.

Bring in some income. If you have time to pick up a side gig or take on some overtime hours, go for it. Also, take inventory around your home to see if there are things you can sell for cash. You may even find a few items that are re-giftable.

Use “Buy Now, Pay Later” carefully. BNPL services can work in a similar way to a layaway program, where you pay off an item over a period of time without having to pay interest.  Since most of them require you to make a payment every two weeks, if you can time the purchase with payday, it can help take the sting out of paying the whole thing upfront.

Be a savvy consumer. Many stores offer price matching or price adjustments (if a price goes down after you make a purchase), so try to take advantage of those policies. If shopping online, you can almost always avoid paying shipping costs (as long as you don't wait until the last minute) or find a discount promo code.

If you can’t pay cash, use credit strategically. Cash is always going to be the best bet if you want to avoid debt, but there are ways to use plastic to your advantage as well. For example, you can open a new card that has a generous 0% APR introductory offer so you have extra time to pay off the bill before interest begins accruing. 

Having a holiday spending gameplan and sticking with it can help you avoid an aftermath of debt. Also important is changing your mindset to realize that it’s not how much you spend on the holidays that makes them special — it’s who you spend them with.

For your financial needs in the holiday season, and every season, visit our site or stop by your local branch.