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How to Save Money During Holidays in Canada?

The festive season is around the corner and along with it comes all the joy of vacationing, partying, purchasing amazing things, gifting your loved ones, and so much more! The holiday season may seem quite exciting but it might turn into a burden if you don’t consider creating a budget early to save for the festive. Budgeting can help you avoid overspending and the unnecessary stress of managing money. The question is how to save money during holidays in Canada? Well, this article is all about these savings!

You need to create a budget to save money, but is creating a budget the only thing you need to do? Would only creating a budget can save you from merging up your debts with your holiday savings? The answer is no. To avoid this mess not only creating a budget is required but you also have to keep a constant eye on it and stick with it. A study showed that over 77% of the buyers go beyond their decided budget.

To save you from the turmoil of mixing debts with your holiday savings, here are tips on how to save money during holidays in Canada! 

Read: 100 Innovative Ways To Save Money On A Tight Budget

How to Save Money During Holidays in Canada?

Make a Budget for Holidays

Jot down a list of the things to be purchased such as gifts, cards, decorations, refreshments, etc. Also, make sure that what you are planning to spend goes hand in hand with what amount in your budget. Keep a check on what amount you have already spent and up to what amount you will require to save for further spending.

Is the budget you created even feasible? Is it even reasonable? To make your budget look achievable, would you need to cross some unnecessary items off the list? If so, readjust your budget as per the requirements and also keep an eye on your money boundaries.

Make sure that you keep some amount of money aside after reaching the threshold for unexpected expenses. 

Make Savings Your Priority

Once you have created a budget, it’s time to jump up to the next step by building up a holiday fund. Early savings allows you to look after the necessary funds. You can start saving money from January as it is considered to be the best for holiday saving. Stay optimistic, it’s just a matter of a few more months.

Let us consider this example, if you are planning on spending $1,000 as per your holiday budget, and have only 2 months, that is around 60 days left to save this amount, then you have to save up to $500 every month or around $125 every week.

You can be relieved by using self-managing saving apps such as KOHO. Such apps settle up your spare money by investing them, helping you achieve your budget target.

For long-term goals, invest your holiday saving fund in a saving account with high-interest returns at EQ bank and Tangerine in Canada. Numerous online banks also provide the facility of automatic saving schemes.

Shop Early

We all are aware of the cons of last-minute shopping. You may get amazing deals and great discounts but to save the most for your holidays, it is best not to do so at the last moment.

Check out the Cyber Monday and Black Friday sale events, they have great deals to offer. Also, have a look at the great deals offered around Thanksgiving weekend sales.

Compare the market prices with the prices of online shopping and only purchase the best price that is available. Keep your shopping list handy and stick to it; check off the purchased items from the list. Don’t forget to take the benefits of free delivery. Online retailers use free delivery as a way to attract customers during the festive season.

If you are paying for the gift items using credit cards, you may overspend thus switching to the conventional cash-paying method. You should complete all your bookings before time if you are planning for a vacation. As soon as the holidays start approaching, the hotel and flight prices shoot up instantly. 

Generate Side Incomes

You can achieve your goal of saving for holidays sooner by generating more income. This also avoids the risk of mixing up the debts with the holiday cheer. A part-time job can help in addition to the primary income.

A part-time job can be anything like proofreading, doing a paid online survey, working as a mystery shopper, starting your blog, selling second-hand items, and much more.

Earn a Few Bucks with DIYs

Let’s do some DIY! Why? Because you will love it when you save money! Do-It-Yourself (DIY) brings out the creative and artistic side in you. DIYs can also help you save some bucks for your holiday savings. Also, what could be better than a handmade gift for your family and loved ones.

You can bake some cookies/cake, try your hands on making candies, jams, perfumes, jewelry, soaps, or the traditional handmade gifts and cards. You can also save some bucks by purchasing the required material in bulk.

Make the Most Out of Holiday Shopping Rewards

Make sure that the credit card you are using for purchasing during the holidays offers amazing rewards. Rewards in the form of cash back or points can help you save almost 5% of what you spend. On top of the rewards from purchasing with a credit card, you can also gain special incentives, discounts, and other rewards online each time for your purchases.

A few such deals are as follows.

  • KOHO: Get cashback ranging from 0.50% – 2% along with a welcome bonus of $20.
  • Drop: Various major brands can help you earn cashback. Also, you earn a bonus of $5.
  • Rakuten: You can get cashback up to 40%. Also, you can earn a registering bonus ranging from $5 to $350.
  • Caddle: You have the opportunity to earn a cashback on your purchases, and for referring it to your friends, and complete surveys.

Sell Off the Unwanted Goods

This is a great option to know how to save money during holidays in Canada. The best time to clear all the unwanted stuff is before Christmas. Create some free space in your home by removing the clutter and earning out of it. Sell your items online on e-commerce websites such as Etsy, Kijiji, Amazon, Craigslist, eBay, etc., and earn some bucks out of it.

New Year is all about new beginnings and new things, hence get rid of all the unwanted things. Also, the money earned by selling the old stuff takes you nearer to your goal of holiday savings.

Read: 10 Vital Financial Must-Haves for Newcomers to Canada 

Do Not Stress and Enjoy Your Holidays! 

The holiday season is all about spending quality time with your loved ones and enjoying it peacefully. It is all about taking time off from your daily hectic schedule and thinking about the following year and taking careful consideration of the year. It’s about bringing smiles and filling others’ lives with joy.

Don’t end your holiday cheer behind by rushing for shopping at the end moment. Plan in advance and save yourself from any hazard. 

Don’t be upset if you are not able to achieve the fund goal of holiday spending. Sometimes, all you and your loved ones need is some actual care and time of togetherness, and this in itself is plentiful.

Be generous during this festive season and offer a helping hand to the ones who need it, to the homeless, and to those who are in the need of comfort. That’s the real holiday spirit! 


Devanshee Dave

Devanshee is a staff writer at YourFirst.ca. She is a finance enthusiast and has completed her Master’s degree in Mass Communication & Journalism. She is currently pursuing CFA (Chartered Financial Analyst) and has worked as a journalist in a local business newspaper, multiple start-ups as well as finance and economy-related online media houses.

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