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5 Budgeting Tips for Holiday Shopping

How to budget for Christmas shopping

Getting into the holiday spirit might tempt you to reach for your wallet and overspend. Decorations, food, gifts and travel can add up to some serious cash. In fact, Retail Dive found that the average consumer plans to spend nearly $1,638, or a 7% increase from last year,1 during the 2024 holiday season.

By creating a holiday budget and using smart shopping strategies, you can score great deals, trim your spending and avoid holiday debt. And no one will ever guess you spent less.

1. Make a list and check it twice.

It's much easier to stick to a spending plan if you start out with a list. Begin by figuring out the total amount you can spend on the holidays. Then divide your expenses into categories, including food, decorations, travel and gifts. In each area, jot down the items you plan to purchase and how much you can spend on each. Then shop only from your lists. Worried you'll overspend? Consider putting your holiday cash on a prepaid card to keep spending in check.

2. Buying online? Use simple tools to save.

If you're a savvy online shopper, you know coupon codes can save you a bundle, but who has time to hunt for the best code during the hectic holidays? Use a browser extension,2 which searches for the best discount available and automatically applies it at checkout.

Human head with dollar sign icon
Tip: Use browser extension to make sure you get the sweetest deal while doing your holiday shopping online this season.

3. Shopping at brick-and-mortar stores? Browse online first.

Want to sniff that perfume or squeeze those fuzzy socks before you buy? Before heading to the store, use a trick known as "webrooming" — that is, going online to check product reviews, compare prices and learn about upcoming sales before buying at a brick-and-mortar store. Be aware, though, that some retailers may offer lower prices online than in the store. In that case, consider buying online and choosing free in-store pickup.

4. Reward yourself with bigger holiday savings.

Credit card rewards can help you save big this season. So check to see if you have unused rewards on any open credit card accounts. If you do, figure out which options are available to you for using them. If there are multiple options, spend some time calculating which option gives you the best value — converting points to cash, redeeming them for gift cards, or using them to purchase merchandise you can give as gifts. Second, use a cash-back credit card for your shopping to get an extra percentage back on all of your purchases. If you spend $1,000 on a card that gives 2% back, you save $20.

5. Use cards with your best interest in mind.

Wise credit card use is key to avoiding holiday debt. An analysis by NerdWallet's 2023 Holiday Shopping Report3 found that 52% of Americans were still paying off credit card debt from the 2022 holiday season in October 2023. You don't want to be one of them. 

If you won't be able to pay off your card in full when you get the bill, consider applying for a credit card that comes with a zero percent interest introductory offer. Then calculate how much you can reasonably charge and still pay off your balance before interest payments kick in.

Use these tips to celebrate the holidays without spending beyond your means. And if you'd like to get more information on how to budget or use your credit or debit cards, stop by a local branch or give us a call at 1-888-SYNOVUS (1-888-796-6887). We're happy to help this season or any time.

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Important disclosure information

  1. Daphne Howland, "PwC expects 7% bump in average holiday spending, increased traffic to stores," Retail Dive, published October 1, 2024. Accessed October 1, 2024. Back
  2. Tom Blake, "16 Best Cashback & Coupon Extensions To Save Money," WebMonkey, published September 9, 2024. Accessed October 1, 2024. Back
  3. Erin El Issa, "2023 Holiday Shopping Report," NerdWallet, published October 3, 2023. Accessed October 1, 2024. Back