Christmas Extras That Waste Your Money

Every Christmas season, it feels like businesses kick their festive marketing tactics into high gear to get us to spend a little extra. And guess what? It works. Christmas retail sales in the United States hit a record $976 billion in 2024. And 2025 Christmas sales are expected to increase by 4% over last year—potentially crossing over $1 trillion!¹ Whoa.

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How do retailers get us to open our wallets so wide during the holidays? Well, one of their favorite strategies is tempting us with Christmas extras and gimmicks that we absolutely “can’t live without.” Here’s the deal, though: Most of the time, we can live without that stuff. Except maybe gingerbread cookies—those are a must.

These are some of the most common extras and expenses that you’ll be tempted to splurge on this season—but that you definitely don’t need. Steer clear and protect your cash.

Unnecessary Christmas Expenses

Category	What to Skip	Why It’s a Waste	How to Save
Big-Ticket Buys	Pricey new decorations Splurges for yourself	These big purchases drain your wallet fast and rarely add long-term value.	Reuse decorations and skip the big personal buys.
Over-the-Top Gifts	High-end gadgets Getting the kids everything Expensive host/hostess gifts	You’ll overspend, and most recipients won’t remember the price tag—just the thought.	Stick to a set budget or try the four-gift rule: something to wear, read, need and want.
Extra Add-Ons	Extended warranties Paid gift wrapping Overnight shipping	Retailers use these to pad their profits—you’ll rarely need what they sell you “just in case.”	Say no to warranties, wrap gifts yourself, and order early to avoid rush shipping fees.
Fake Savings Traps	Store credit cards Buy now, pay later (BNPL) plans Subscription boxes	These create debt and long-term costs disguised as discounts or convenience.	Skip the credit cards and BNPL offers—pay cash and avoid future stress.
Costly Traditions	Fancy party food New Christmas outfits Hundreds of mailed cards	These add up quickly and don’t make the holiday more meaningful.	Simplify: Print fewer cards, host a potluck, and reuse last year’s outfits.

Big-Ticket Purchases You Don’t Need

When it comes to things you can get for Christmas, people tend to think big—and big usually means large, expensive purchases. But you don’t have to break the bank to have a merry Christmas.

More (Expensive) Decorations

If you’re a fan of the movie National Lampoon’s Christmas Vacation, you know people can get carried away with their decorations. It seems like every year there’s some new light display to make your house so merry and bright that it’ll be visible from space. And expensive animatronics and 20-foot-tall plastic Santas will turn your yard into a theme park ride!

We get it—Christmas is awesome and people want to go all out. But do yourself (and your neighbors) a favor and keep the decor to a reasonable level. Buying new decorations every year can get expensive really fast (and isn’t worth going into debt over). So here are some ideas for decking the halls on a budget:

• Create a sinking fund in your budget for one big decor purchase, or budget to buy smaller items periodically throughout the year (thank you, Amazon).
• Carefully store your decorations so you can get the most out of them by reusing them every year.
• Get some hand-me-down decor from parents or friends who are redecorating—bring those family memories to your place.
• Only replace items if they break or fall apart (and budget for that too).
• Only buy and keep what you can store at home—the cost of a storage unit for that 20-foot-tall plastic Santa just isn’t worth it.

Splurges for Yourself

Buying gifts for others brings with it the temptation to get a little something-something for yourself. And those sales can be irresistible. You’ve probably been eying an expensive exercise bike to help with that New Year’s resolution, the new iPhone with the slightly better camera, or the new Nintendo Switch 2 to get your Mario Kart World fix. In fact, a third of shoppers are planning to buy some fancy electronic gizmo for themselves.²

Hold your horses! That’s not what Christmas is all about. The idea is giving gifts at Christmas. In fact, giving is something you can do all year long—it’s the antidote for selfishness, as Dave Ramsey says.

So skip those personal splurges. You don’t need them, and neither does your budget. And you’ll be in good company—a quarter of Christmas shoppers (25%) plan to completely skip those personal splurges, up from 17% in 2024.³

Stop Overspending on Gifts

Now there’s nothing wrong with being outrageously generous, but you need to be in a good financial position to do it (taking care of your family’s needs first). The truth is, there’s no need to go overboard and make unnecessary and excessive purchases that could land you in a tight spot financially. So here’s our advice for how to avoid overspending on gifts.

No One Needs High-End Electronics

We’ve already said that you don’t need to buy yourself the latest high-priced electronics. So guess what: You don’t need to buy them for your friends and family either. It’s still Christmas, whether you gift your friends and family a big-screen TV or a thoughtful DIY gift. And let’s be real, when you buy a fancy gadget, TV or camera for one person, everyone else will wonder why they didn’t get one too.

Electronics add up to be way more than most people want to (or should) spend on Christmas, so steer clear and focus on more personalized, meaningful and affordable gifts. You don’t have to spend a fortune to make a big impact.

Don’t Buy Everything on Your Kids’ Christmas Lists

Just because your kids have been (mostly) good all year, don’t fall for the idea that you have to spring for everything on their lists—there is such a thing as spending too much on kids’ Christmas gifts. Besides, they don’t need all 20 of those super expensive items.

As the parent, you and your budget decide how much to spend on gifts for your kids. Set a reasonable budget and stick to that amount. And be sure you set your gift budget before you go shopping. You can also try the “four-gift rule” to pare down their list (and expectations): Something they want, something they need, something to wear and something to read. Four things are a lot more budget-friendly than 20.

And don’t forget about those sneaky buys that drain your budget, like stocking stuffers. Set a maximum gift amount per kid and keep it simple. Your local dollar store probably has everything you need to create a stocking that looks like it was loaded up by St. Nick himself.

Gift Cards Aren’t for Everyone

Hey, some people love gift cards—and that’s okay! But a lot of those cards wind up shoved in the back of a junk drawer. Plus, they’re just not a very personal gift. So, unless you’re close with someone who’s a big gift card fan, save that $25 and skip this stocking stuffer.

Host and Hostess Gifts Don’t Have to Be Expensive

So, your neighbors invited you to their annual Christmas party, and it’s standard practice to give your hosts a little something as a thank-you for the invite. A lot of people go all out for these gifts to impress their hosts with expensive wines, fancy gift baskets or snooty kitchenware.

There are ways to say “thank you” without breaking the bank. Smaller, more personal gifts—like a box of homemade cookies or even a handmade card from your kids—will usually go over better than a $140 set of drink tumblers with little glass animals in them (yes, that’s a real thing).

Watch Out for Extra Costs and Add-Ons

These are the retail version of “Do you want fries with that?” They’re little ways stores try to get more money out of you on your way out the door (and they’re not nearly as satisfying as fries!). Stay away from these add-ons that add nothing to your Christmas season.

Extended Warranties

These days, you’ll hear a pitch for the extended warranty as soon as you reach the cash register, and it’s almost always a terrible deal. Stores make extended warranty plans seem like something you can’t live without, but the truth is, these plans are basically just big-time moneymakers for the stores. That’s why they push them so hard. But for you, extended warranties are nothing more than money stealers—odds are, you won’t use them, and they don’t cover as much as you’d think.

You can combat this marketing tactic in a simple way. Say this magical word: No. It’s a complete sentence. Now wasn’t that easy?

Gift-Wrapping Services

If it’s free, go for it. But you really don’t need to pay for someone else to wrap all your gifts—this isn’t the North Pole. You’ll save a ton of money by just buying a roll of wrapping paper and a bag of bows from the local dollar store. Besides, it’s all going to get ripped up on Christmas morning anyway.

You could also get crafty and grab some newspapers, brown bags or butcher paper to wrap your gifts with instead. Dress them up with some festive twine and ribbon, or let the kids decorate them with stamps and markers to give to the grandparents. It’s more affordable and personal.

Overnight Shipping

You don’t need overnight shipping—because you’re planning ahead, right? This is an easy expense to avoid. Just order your stuff a few weeks early, get the standard shipping, and it’ll arrive in plenty of time for Christmas.

Don’t Fall for Traps Disguised as Savings

Saving money is important (especially during the holidays!) and everyone loves a good deal. But some deals are too good to be true and end up costing you even more money. Here are a few scams that pass themselves off as savings that you’ll probably come across during your Christmas shopping.

Store Credit Card Discounts

Everyone from the big-box retailers to Uncle Bob’s Jerky Shack seems to have a store credit card these days, and the stores will be more than happy to offer you some seemingly awesome deals if you just open an account.

Say it again: No. Store credit cards and the debt that comes with them aren’t worth it—even if you’re getting a good discount.

Now, we know what you’re thinking: I’ll pay that store credit card off as soon as I get the bill. But there’s a problem with that logic—everyone says they’ll pay off their card, yet 46% of Americans with a credit card carry a balance at least one month out of the year.⁴

Moral of the story? Don’t take the risk in the first place. Because if something pops up, like an emergency or a routine bill you forgot about, you’ll wind up only paying the minimum payment for those “Bless This Mess” throw pillows and start to rack up crazy interest fees.

Just think—you could still be paying off this year’s Christmas next December! Those aren’t the kinds of Christmas memories you want to last.

Buy Now, Pay Later Plans

Buy now, pay later (BNPL) sounds like something that could help you out. After all, splitting up your total bill into smaller payments frees up room in your budget, right? Wrong.

If you miss even a single payment, you’ll get hit with outrageous fees and interest rates. And even if you don’t, you’ll be chained to that debt until you finish out your payment schedule. Who wants to celebrate the most wonderful time of the year like that?

Pay for your Christmas gifts in cash. If you can’t, then find some cheaper gifts. Buy now, pay later is not your friend.

Holiday Promo Subscriptions

Retailers really know what they’re doing when it comes to getting more money out of you. They can make it so convenient too—just have a box of magical surprises come to your door every month. Subscription boxes like these have fun names like BarkBox, Kidstir and Try the World. Every box is a fun surprise containing things like clothes, toys for kids or pets, beer, snacks, cosmetics, books and more. Just think of it as the modern-day version of the Jelly of the Month Club—the gift that keeps on giving all year long, as Cousin Eddie said.

But is it a gift, or is it just more stuff that ends up cluttering your loved one’s house? Subscription boxes are known for having one cool item and several more you don’t need. Not a great deal considering prices can range from $15 to $70 per month.

During the holidays, you’ll see heavy discounts, extra perks or “free” gifts for subscription boxes to tempt you into a long-term subscription. Then after a few months, the price jumps back up to the normal rate. Even worse, the subscription will renew automatically, and you’ll be on the hook for another year! These boxes may be fun, but they’re more trouble (and more expensive) than they’re worth.

Skip the Nice—but Not Necessary—Traditions

Christmas is all about those little traditions you make with family and friends. But some of these traditions can be pretty costly, and it makes you wonder why you’re doing them at all.

Christmas Cards for Everyone

We know you want to send out the annual Christmas card with a festive photo of your family and holiday-ready pet—but do you really need to?

If you do, go the inexpensive route: Skip the professional photographer, and set up a tripod and a timer. Or ask a family friend with a good eye (and good photography skills) to snap some Christmas photos for you.

When it’s time to print the Christmas cards, look for companies offering coupon codes. Some will even give you a certain number of cards for free—and all you have to pay is the shipping cost.

You can cut costs even more if you send those Christmas cards to only 5–10 of your closest friends and family. It’s okay to be a little choosy here—especially since a stamp costs 78 cents these days!⁵ You don’t really need to send a card to the pizza delivery guy, your boss’s cousin and your ninth grade Sunday school teacher.

Fancy Party Food and Dishes

If you’re the one throwing a Christmas party, you might be tempted to roll out the red carpet and treat your guests to an amazing spread of expensive food and drinks. And a brand-new set of Christmas-themed dinnerware makes the whole thing look like something out of a Hallmark movie. But like everything on this list, that stuff can come at a steep price.

Remember, the holidays are about getting together with people you love and care about—the food is an added bonus (and a delicious one at that!). You don’t need to impress people with fancy food and Christmas dishes. Make a budget for your party that won’t put you in the poor house. Use disposable dinnerware for a homecooked feel (you can find plenty of festive holiday options) and you’ll spend less time cleaning up. Make good food that won’t cost much—or better yet, make your party a potluck!

New Christmas Outfits

We know . . . it’s cute when your whole family has matching Christmas outfits—whether it’s party clothes or pajamas. It makes for great photos at family get-togethers and while opening presents on Christmas Day. But is the expense of buying those matching outfits really worth those Kodak moments and social media likes?

Okay, it’s true the kids may need new outfits—they grow every year. But even then, there’s nothing wrong with holiday hand-me-downs (as long as they’re still in good shape). And grown-ups don’t need new pj’s or formal attire every year, especially if they’ll only wear those outfits once. Christmas will be just as special even if your clothes don’t match . . . and your wallet will thank you.

Smart Ways to Save This Christmas

Here are a few more helpful tips for saving money at Christmas that’ll also help you avoid those costly extras:

• Make your budget early. Planning ahead keeps you from swiping impulsively later.
• Shop with cash or a debit card. You’ll spend less when you can see what’s leaving your account.
• Start a Christmas sinking fund. Save a little each month so December doesn’t wreck your budget.
• Use what you already have. Decorations, wrapping paper and gift bags can often be reused.
• Focus on experiences. Plan a movie night, cookie swap or caroling outing instead of pricey gifts.

Make the Most of Your Money This Season

It might not sound like much, but skipping these Christmas extras can go a long way toward giving your budget some breathing room. At the end of the day, remember this: Christmas is all about finding joy by spending time with others and blessing them—not spending money just because every holiday commercial told you to.

Investing in meaningful experiences and gifts doesn’t have to cost a fortune. Look for thoughtful items that’ll make a difference in the lives of people you care about—not another trendy gift or touch-screen gadget.

As you’ve seen on this list, every wise Christmas shopping season begins with a budget. You’ll know exactly how much money you have to spend on all the tidings of comfort and joy. And the best way to budget for the Christmas season (or for any season) is with EveryDollar—the all-in-one budgeting tool that’s easy to use, keeps all your dollars busy, and helps you achieve both your short- and long-term money goals.

So, what are you waiting for—Christmas? Get on that budget and check out EveryDollar today!