U.S. households are generally doing a good job of saving for holiday purchases this year, despite stiff economic headwinds.
Data from a new TD Bank survey reveals that 67 percent of shoppers plan to set a holiday budget in 2025, and 59 percent plan to keep it under $600. Additionally, 79 percent of survey respondents are leveraging coupons, sales, and deals to curb holiday costs, while 53 percent of respondents are saving cash throughout the year to prepare for holiday spending.
“This year we’re seeing that consumers are planning earlier, saving consistently and approaching the season with a greater sense of financial control,” said Marc Womack, head of U.S. consumer deposit and payment products at TD Bank. “From setting money aside throughout the year to paying balances off quickly after the holidays are over, shoppers are proving that good preparation is just as important as smart spending.”
Use These Budgeting Tips To Save More Cash During the Holidays
With much of the hard work out of the way, consumers can cut holiday expenses significantly with a few savvy financial moves, with these tips leading the way.
Start stacking savings
Holiday shoppers should start by bundling several easy-to-find cash-saving opportunities.
“The smartest way to save right now is with ‘stacking’, where you combine promo codes, cashback offers (both online and via your credit card), loyalty rewards, and seasonal sales whenever possible,” Alexander Ketter, consumer and savings expert at Coupons.com, told NTD News. “Consumers often think deals are one-and-done, but combining them is where the real savings happen.”
Sign up for loyalty programs, even if you’re a casual shopper
Many of the early seasonal discounts are for members only. "Signing up for loyalty programs can help you save and actually get the gifts you want,” Ketter noted.
Look hard for gift cards
For restaurants and holiday parties, check gift card promotions, as many chains offer "buy $50, get $10 free" deals in December. “Also check apps like Groupon, Restaurant.com, OpenTable, and RESY for potential restaurant savings," Ketter advised.
Sign up for store newsletters
Retail newsletters are easy to find (just check the retailer websites). “Doing so will get you a new user coupon code to stack on sales and rewards on purchases and potentially free shipping,” Andrea Woroch, consumer finance analyst at AndreaWoroch.com, told NTD News.
Leverage digital savings.
Go online and get creative with online sites that actively look for savings on your behalf.
“Use web extensions that will help you compare prices and track price drops like Karma,” Woroch said. "Also, Fetch Shop allows you to earn points for online purchases that are redeemable for gift cards to Target, Walmart, and more, which you can then use towards last-minute gifts.”
Think beyond regular retail
You can find great deals on like-new gifts from resale sites, Woroch advises.
“Gently used name-brand fashion at Poshmark for up to 80 percent off regular retail (you may be able to find new clothing with tags on them),” she said. “Additionally, get up to 80 percent off toys from local listings on Facebook Marketplace or OfferUp and certified refurbished electronics and small kitchen appliances at reputable retailers like Amazon that can be renewed for up to 60 percent off regular models.”
Avoid These Holiday Spending Mistakes
One big holiday spending error is waiting too long.
“People assume the lowest prices appear in the final days before the holidays, but retailers have shifted to early promotions,” Ketter said. “Shoppers who delay often end up paying more due to limited inventory, higher shipping costs, or fewer stackable discounts.”
Many consumers also underestimate the cost of non-gift spending, such as holiday dinners, decor, travel, and event tickets. “These categories quietly inflate the season’s budget because people don’t formally include them in their planning,” Ketter added. “Keeping a single consolidated holiday budget for everything is the best way to stay in control.”
The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.