5 Ways to Cut Holiday Spending in Half

Tip #1: Set a Realistic Holiday Budget

The best way to take control of holiday spending is to start with a clear plan. Before you buy a single gift, take a few minutes to list out your expected expenses. Consider things like gifts, food, travel, decorations, and special events.

Once you see everything in one place, it’s easier to set realistic spending limits for each category. Be honest about what you can comfortably afford, and remember, it’s okay to scale back. The holidays should bring peace of mind, not credit card stress.

If you tend to lose track of spending once shopping begins, try using your Red Rocks CU digital banking tools to keep an eye on your account balances and transactions in real time. A quick check-in every few days can help you stay accountable and avoid surprises later.

Pro Tip From RRCU: Create a “Holiday Spending” category in your budget. Set a total limit, then break it down by gift, travel, and event. Seeing each category in one place helps you stay on track and lets you celebrate without second-guessing every purchase.

Tip #2: Give Creative, Low-Cost Gifts

You don’t have to spend big to give something meaningful. Some of the most memorable gifts are the ones that come from the heart.

Handwritten letters, photo books, or homemade treats can show thoughtfulness in ways store-bought gifts can’t. You might also consider experience-based gifts like cooking a favorite meal for a loved one, organizing a movie night, or offering to babysit so a friend can take a well-earned break.

If you’re shopping for multiple people, try group gifting with family or friends. Pooling your money for one special item can make a bigger impact while keeping costs manageable.

And whenever possible, shop local. Supporting small Colorado businesses not only keeps your dollars in the community but also helps strengthen the local economy during the busy holiday season.

Pro Tip From RRCU: Set up a “handmade or $20 gift challenge” with friends or family. Everyone gives something small, thoughtful, or locally made. It keeps things fun and budget-friendly while supporting small Colorado businesses in the process.

Tip #3: Plan (and Shop) Early

The earlier you start your holiday shopping, the more control you have over your spending (and your stress level!). Planning ahead gives you time to compare prices and avoid those last-minute “just grab it” purchases that tend to derail a budget.

Make a list of everyone you plan to shop for and set a spending limit for each person. Then, start watching for sales or setting price alerts on the bigger items you know you’ll need. Taking advantage of Black Friday, Cyber Monday, or local Colorado holiday markets can save you money, especially when you already know what you’re looking for.

Shopping early also helps you dodge shipping delays and rushed decisions. By spreading out your spending over several weeks, you’ll feel less financial pressure and more excitement about giving meaningful gifts.

Pro Tip From RRCU: Use a “gift notes” list in your phone all year long. Whenever someone mentions something they love, jot it down. That way, you can shop early when sales pop up instead of paying full price.

Tip #4: Simplify Celebrations

It’s easy to feel pressure to make the holidays bigger and better every year—more gifts, more décor, more everything. But often, the most meaningful memories come from the simplest moments.

This year, try focusing less on extravagance and more on togetherness. Host a potluck-style gathering where everyone brings a favorite dish instead of footing the whole bill yourself. Reuse or repurpose decorations from past years, or organize a fun holiday décor swap with friends and family to refresh your home without spending a dime.

You can also create new traditions that don’t revolve around shopping or spending, like volunteering together, taking a neighborhood light tour, watching classic holiday movies, or baking cookies as a family. These moments often end up being the ones everyone remembers most.

Pro Tip From RRCU: Start a new no-spend tradition. Host a movie night, cookie exchange, or volunteer day instead of a big dinner. Set a rule that everyone contributes time or creativity instead of money. This way, you can build memories instead of bills.

Tip #5: Start a Holiday Savings Plan for Next Year

One of the best ways to make next year’s holidays less stressful is to start planning now. It doesn’t have to be complicated, just consistent.

Consider setting up a dedicated holiday savings account or using automatic transfers to tuck away a little at a time. Even $20 per paycheck can add up quickly over the course of a year, giving you a cushion for gifts or travel without relying on credit cards.

You can also use your Red Rocks CU digital banking tools to set up automatic transfers or track your progress toward a specific goal. That way, saving becomes part of your routine.

Pro Tip From RRCU: Set up a recurring $20 transfer into a separate RRCU savings account labeled “Holiday Spending.” When the season rolls around next year, you’ll already have your gift fund waiting for you (and you’ll minimize that typical post-holiday stress!).

The RRCU Difference: Support That Lasts Beyond the Season

Our team knows the holidays can bring both joy and financial pressure, and we’re here to help with both. We want you to feel more confident and in control of your finances all year long.

Our financial advocates are always here to offer guidance, tools, and encouragement. From personalized financial advice to everyday money tips, we’re by your side through every season.

Because at the end of the day, the holidays come and go, but your financial well-being lasts far beyond them!