How to Have an Inexpensive Christmas (Yes, Even with Teens)

Christmastime shouldn’t be the headache it’s become. See our best tips for having an inexpensive Christmas this year!

Every year around September, I start planning our Christmas Budget, and heave a sigh.

Not a sigh of relief, mind you– more like a groan.

Yes, we’ve put money into our “Christmas” savings fund throughout the year. But it’s usually not as much as I’d planned to save.

And as I look over our fall budget in general, I realize this is the time of year that’s hardest to make up the difference.

Kids’ activities are in full swing and we’re back to homeschooling and traveling to see our college kid.

How we approach Christmas spending this year is going to be different; and I’m determined to make it happen!

Homespun Christmas gifts and a child holding a candle wearing a Santa hat with text "How to have an inexpensive Christmas- 8 best tips for families"

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How did we get here?

For us, we’ve always lived on a budget, using the EveryDollar app and sinking funds to pay for expenses throughout the year. This helps us to know exactly what we’re spending each month.

As a frugalish mom, it’s not a matter of not knowing where our money is going; it’s more about being intentional with what we have.

Thinking back over the last several years, I’ve always made an effort to keep Christmas realistic and meaningful.

I really want our kids to prioritize people over things. Time spent over money spent.

Christmas is about Jesus, after all. In our family, we know it’s not about the gifts…yet it’s so hard to step out of the consumerism game.

Managing our kids’ expectations is not an easy task. But over time, they’ve become more understanding of the fact that presents do not equal love.

So when we stopped buying big gifts (electronics, expensive clothing items) a few years ago in favor of a few small, needs-based items, it wasn’t that hard of a transition.

But this year I want to take it even further.

How can we make Christmas meaningful, fun, and joy-filled – by spending even less than usual?

Here are some ideas I’ve been brainstorming, and I hope it helps you in your quest for an inexpensive Christmas, too.

1. Thrift It

If you haven’t shopped thrift stores in recent years, you’re really missing out. Here’s why we love them:

You can find better-quality clothing from even a decade ago, then now (before the fast-fashion Shein era)
These ^ better-quality items are considered “vintage” now, which makes them popular with teens. Win-win.
You can still find clothing items as low as $1 if you know where to look.
Brand new items can be found at a fraction of the price

My best tip for finding thrift finds is to shop in smaller towns, not cities. Prices are lower and you’ll find better quality as merchandise is less picked-over.

I’m considering taking my teens on a Thrift Store Hunt as the main part of their Christmas gift. I’ll give them a budget, and we’ll make a fun day of hitting the best thrift stores in our area, and some that we’ve always wanted to visit.

Another favorite idea is to bundle “like” items together in a basket.

Thrifted kitchenware in a country kitchen- idea for inexpensive Christmas gift.

Don’t forget about online thrifting, too. Thredup, Ebay, Poshmark and Mercari are all great places to find deals & steals.

(*You can use my code: MIDWESTFAM to get $10 off your first Poshmark order.)

If you feel like you can’t give thrifted items as a gift- think about small things you could use as stocking stuffers.

(I feel like anything goes in stockings; we go for funny and creative finds, along with a few “needs” like new socks).

2. Plan more connection, less gifts

Of course, the problem with Christmas spending is that we’ve made it all about the Big Event: opening presents under the tree.

The shift happens, I think, when we have a day, or a week of fun activities that take some of the focus off of just opening stuff.

One thing we’ve enjoyed through the years is a candlelit Christmas Eve or Christmas Day dinner.

You could also have a theme dinner for every night leading up to Christmas. Let the kids pick the menu and help make it!

Finding movies we can enjoy at home, and free local events like the town Christmas parade, is another way to make lasting memories.

See more ideas here: Meaningful Christmas Eve Traditions for Families

3. Go homemade

I think there is a new appreciation in this era for thoughtful handmade gifts.

For those we exchange gifts with outside our immediate family, I almost always make homemade gifts like a Christmas simmer pot mix, or homemade soap or some type of edible yummy treat (canned jams, breads, dry soup mixes).

If you’re short on time, this post has more than 25 ideas for quick and easy homemade gifts.

Nearly all of my kids enjoy photo gifts or sentimental keepsakes. So I’m also thinking of simple ideas like shadow boxes, t-shirt quilts and even treasures passed down from grandparents along with handwritten notes.

Many of these projects you can start during the summer or early fall, and breathe a sigh of relief as Christmas approaches.

4. Take a short trip instead

Depending on how much you normally spend on Christmas, it might be less expensive to rent an Airbnb for a night or two with your family.

Some families I know book a home and split the cost between their extended family members to make it really affordable.

Of course, you might have to convince your kids to forgo the tangible gifts, but it’s really worth the try!

Maybe consider taking some homemade or thrifted gifts to exchange on your trip if that helps ease into the change.

5. Focus on Giving

Sometimes a little perspective helps our kids understand wants versus needs.

Think of local charities where you can volunteer around the holiday season, or families you could assist anonymously.

Giving can be really contagious. And it makes our wish lists seem pretty extravagant when we think about the legitimate needs of others.

6. Do a Gift Exchange

We always purchase a few gifts for our kids and then the kids do an exchange with each other. But this year, I wondered- why not do an exchange with the whole family?

I love the idea of each family member having one person to focus on and bless. I think it would be really fun to see what our younger kids come up with and help them choose their gifts.

Less gifts and more intention would seem like a great reprieve from the Christmas shopping madness!

Handmade present wrapped in craft paper with bouquet of fresh flowers on table.

7. Have a “stuff swap” with friends

At our local homeschool group, we setup a “giveaway table” each time we meet- like a free yard sale.

I’m wondering what new and gently used items we could all come up with to exchange specifically as Christmas gifts?

Maybe you have other like-minded friends who would love to swap quality castoffs and make Christmas shopping that much simpler this year.

8. Take on a side hustle

Maybe your attempts to reimagine Christmas just isn’t what your spouse or family envisions. Or maybe you’re in a mindset where you just really want to give nice gifts.

And that’s ok! (Wouldn’t we all, if money were no object?)

Starting a short-term (or more permanent) side job could be the solution to ease the Christmas pinch.

From selling specialty bakery items to refereeing kids’ sports games this fall – parents are always coming up with genius ways to add to the bottom line.

Try this post for more flexible jobs that could make Christmas more affordable this year.

9. Use Cash, and Let Them Shop Instead

If other ideas fail and you simply want to stick to a smaller budget, do what a relative of mine does: give each child in your family a designated amount of cash and go on a Christmas shopping trip!

Yes, you’ll still have to spend money. But if you stick strictly to the cash (no going over the limit), you might actually spend less this year as you won’t be tempted to add “just one more” item to their list.

(And then, add one more to everyone other child’s list in an attempt to even things out…it’s madness, I tell you.)

You won’t want to do this on Christmas day, of course. But it could become a simple family outing that replaces all the stress of hunting for those gifts yourself!