The holiday season is exciting. Spending time with friends and family, attending parties, traveling to see loved ones: there is no shortage of things to do. But this enthusiasm can come at a cost. And many people are looking for ways to reduce these costs.

A recent CNET investigation found that 30% of U.S. shoppers plan to spend less this holiday season than last year. This makes sense given the higher cost of living. And it’s important to avoid overspending during the holidays. After all, excessive spending can lead to long-term consequences, such as high interest debt and a depleted savings account.

But how can you avoid breaking your budget this holiday season? These tips can help you.

7 Ways to Avoid Overspending During the Vacation

You don’t need to go into the red to have a happy holiday season. Here are some simple tips to reduce costs.

Create a budget

Responsible vacation spending starts with responsible budgeting. Start by thinking about everything you plan to spend money on this holiday season. This includes gifts, travel, food, decorations and anything else you might need.

Smart Money advice on topics that interest you

CNET Money brings financial news, trends and news to your inbox every Wednesday.

Now think about the money you have already saved and the the money you plan to save between now and the time these expenses arise. This will give you an idea of ​​how much you can afford to spend on each activity. Set a strict limit for each expense and resolve now to respect this limit.

Pro Tip: These Vacation Budgeting Apps Make it easier to set and stick to your spending goals. They can also help you create gift lists and track which gifts you’ve purchased and which ones still need to be purchased.

Smart Money advice on topics that interest you

CNET Money brings financial news, trends and news to your inbox every Wednesday.

Spend less on gifts

For most people, giving a gift is a major expense during the holidays. My budget includes gifts for 13 children, not to mention the adults I plan to buy gifts for, so I know how important it is not to overdo it. Here are some ways to spend less:

• Buy fewer gifts: If you usually buy more than one gift per recipient, consider cutting back this year.

• Buy for fewer people: If you don’t have enough money to comfortably buy gifts for everyone on your list, consider limiting the number of recipients by prioritizing children and loved ones.

• Give gifts: My favorite gift I’ve ever received was a 10″ x 8″ painting my kids made for Father’s Day. If my house was on fire, I would take this photo before anything else. This gift cost less than $3, but it means more than anything I own. From baked goods to bath bombs, there are plenty of DIY gifts you can make to show your loved ones you care.

• Suggest a gift exchange: Introduce the idea of ​​gift games like Secret Santa or White Elephant to your social circles. They can be a fun addition to your holiday parties and keep costs down for everyone involved.

• Take advantage of the sales: The holiday season is also the sales season. Buy gifts during sales events like Black Friday and Cyber ​​Monday to save money.

Travel cheaper

Hotel stays, plane tickets and meals on the road can add up quickly. But there are plenty of ways to get where you need to go inexpensively. The easiest thing to do is stay home this year, but if that’s not an option you want to consider, here are some other tips for traveling on the cheap.

• Avoid the hotel: Make arrangements to stay with friends or family to save on hotel costs.

• Benefit from travel rewards: To use credit card travel rewards to cover costs such as airfare, accommodation and car rental.

• Pack snacks: If you’re planning a long trip, bring snacks and drinks with you. The less you have to rely on expensive airport food and other travel amenities, the lower your costs will be.

• Save on gas: A road trip? Save Money on Gas using an app like GasBuddy to find the cheapest gas station on your route.

Pro Tip: See which credit cards our experts recommend for the holidays.

Keep hosting simple

It’s always nice to have friends and family over, but you don’t have to break the bank to do it. Consider hosting your party as a potluck so you don’t foot the bill for all the drinks and food. Reuse decorations from years past rather than trying to outdo what you’ve done before. The most important thing is to spend quality time with your guests.

Look for low-cost or free activities

You can create vacation memories for little (or no!) money. Here are some ideas:

• Find free local events: Look for local events hosted by your city, county, or even a local church.

• Admire the decorations: Take a walk or drive with your family to enjoy the neighborhood’s light displays.

• Make a cookie exchange: Ask your friends and family to bring a batch of their favorite holiday baked goods to exchange. Everyone will go home with a variety of treats and you won’t have to spend as much time in the kitchen.

• Think about crafts: From gingerbread houses to homemade decorations, crafting with your kids can be a fun way to pass the time and make low-cost decorations for your home.

• Volunteer: The adage “It’s better to give than to receive” is especially true during the holidays. Consider volunteering at a local food bank or other charity for a rewarding experience that doesn’t cost a cent.

Pay in cash

Studies have proven that spending cash is more painful than swiping a credit card or adding an item to your online shopping cart. By paying for your vacation expenses in cash, you’ll be less likely to waste money on impulse purchases and more likely to think more carefully about what you buy.

Pro Tip: When planning a holiday shopping trip, only bring as much money as you want to spend. When your money runs out, resist the urge to pull out a credit or debit card to cover any excess.

Avoid impulse purchases

Many stores have perfected the science of placing items in certain spaces to encourage impulsive spending. That’s why you’ll find candy and drinks near the checkouts and tempting displays at the ends of each aisle.

These stores benefit from the fact that approximately 73% of Americans say that most of the purchases they make are unplanned. But that extra splurge every time you go to the store can add up.

So, make a list of everything you plan to buy and make sure you only buy what’s on the list.

A happy vacation doesn’t have to cost a ton

The holidays are a favorite time of year for many, myself included. But you don’t need to break the bank to enjoy the joy of the season and create fond memories. Use the tips above to avoid overspending this year and start the new year on solid financial footing.

Related articles: