Buying gifts for the winter holidays can be so financially stressful that it can zap the season’s magic. This is especially true when the cost of goods and services escalates, but your income doesn’t keep pace. Then, you have to make hard choices.

Deloitte’s 2024 holiday retail survey found that 70% of consumers are expecting to face higher prices this year, so they're being especially frugal.

While being budget conscious is great for your bank account, it can make holiday shopping an unpleasant activity when it doesn’t have to be. Here are some ideas about how to enjoy the process as you scale back the holiday spending.

Combine shopping with a museum outing

Wondering what to do with the kids that also offers culture and entertainment as you shop for everything from jewelry to children's toys to home goods?

Head to your favorite museum on December 1, 2024 for Museum Store Sunday. You can explore unique items, take part in special events and immerse yourself in art and culture.

Many gifts in museum stores are inspired by exhibits at the museums themselves, so you can share your experience with loved ones. And if you happen to be a member of a museum, you may receive a store discount.

“More than 2,100 museum stores across all 50 states are participating this year, so there are thousands of opportunities to celebrate creativity and community in your own neighborhood,” says Stuart Hata, director of retail operations at Fine Arts Museums of San Francisco.

"Proceeds from museum store purchases support artists, small businesses and cultural institutions in shoppers' communities, so every gift purchase makes a big, feel-good impact,” he adds. “Holiday shopping isn't just a chore at museum stores, but a fun and meaningful experience that gives back."

Crank up the carols as you shop online

The National Retail Federation’s 2024 holiday spending survey found that 57% of consumers will be shopping for the holidays from behind a screen.

Although it's convenient, it lacks the cheery atmosphere you get in a mall or store. It can cause you to make less-conscious spending choices, too, because you just want to log off.

So, recreate the in-person retail experience at home. Before you sit down to browse e-commerce sites, take a beat and put on your favorite holiday tunes.

“A holiday shopping playlist is a great way to set the mood and get you into the holiday spirit as you shop,” Destiny Chatman, a Rochelle Park, New Jersey-based consumer expert at TopCashback, said in an email. “It can also make the time go faster as you search for your gifts.”

Take the secondhand challenge

Purchasing everything new can not only be costly, many find it unnecessarily wasteful.

Tiffani Sharp, a wealth advisor and attorney from Folsom, California, says buying from thrift, consignment and antique shops can be a beautiful way to give, particularly if you want to be soft on the environment as you seek deals.

“It's almost like a scavenger hunt,” Sharp says. “You’re finding the hidden gems.”

Not only does secondhand shopping allow you to find truly unique items that are no longer produced, it can offer quality that can be rare today.

“Many vintage items were made utilizing superior manufacturing techniques that we may not see in new quickly produced items today,” Sharp says.

Preowned items are particularly appealing to the younger set. In fact, a 2024 Morning Consult holiday shopping survey found that half of Gen Zers plan to find gifts in the resale market.

Host a gift-free holiday potluck

You can indulge a group economically, joyfully and all at once by hosting a holiday potluck at your home. You won’t have to buy everything for the meal, which will save a lot of money at the supermarket. Take on main dish duty and assign sides, beverages and deserts to everyone else.

“A roasted pork butt is usually only about $4.99 a pound, so it's not expensive,” says Lydia Liebchen, corporate chef for DeBragga, New York’s Butcher. "It’s easy, delicious and can feed a crowd. You can dress it up, dress it down."

"Cold poached salmon is good too," she adds. "On sale, you can get it at a great price and it looks so impressive on the table. Or, try a stew that you make ahead and have bubbling on the stove. You can feed a lot of people that way.”

To further remove financial pressure, send invitations that specify not to bring gifts. Just decorate, cook and celebrate the season with friends and family.

Arrange a gift exchange

When you have many people in your social circle, buying for everyone can turn into an unaffordable task. Instead, consider a gift exchange so you can purchase just one reasonably priced item. There are a couple ways to arrange one.

For example, you may do a Secret Santa, in which each member of your group is randomly assigned a giftee. Shopping will be easy because you can focus on that one person.

Alternatively, you can do a white elephant (also called a Yankee swap), which is not specific to an individual. Everyone involved brings a wrapped item to a party. The first person selects a gift from the common pool and opens it, then the next person does the same but has the option to keep theirs or take someone else’s.

Whichever way you do a gift exchange, set a price limit, such as no more than $25.

Gamify the shopping process

If you have children, get them excited by making shopping for discounts into a game, says Jennifer Seitz, director of education at money and safety app Greenlight in Atlanta.

“Encourage your kids to help find the biggest Black Friday or Cyber Monday deals, stack coupons or hunt for cash back offers to stretch the holiday budget,” Seitz says. “Explain that you want to spend money where it has the best value. This is such a great time to help kids become better consumers.”

Gamifying shopping isn’t just for the kids, though. With so many people on tight budgets, bring the adults in your life into the fold.

“Challenge your friends, partner or family to find the best deals or outside-the-box gifts,” Chatman says.

For example, you may impose an extremely low maximum, such as $10. “This will give you the incentive to put more thought into your gifts while bringing the holiday spirit to life way before the holidays,” she adds.

Create inexpensive gifts and lasting memories

If you want to stay out of the stores almost entirely and you have children, make your own gifts this year. All you need is an idea and supplies.

From baked goods that you put in decorated tins to handmade crafts that will appeal to all, you'll also be creating memories.

“DIY gifts are both wallet-friendly and unique, giving kids a chance to make something personal while learning to get creative with their resources,” says Seitz.

“With my kids we have done hot chocolate gift sets, soap making. Everyone gets the same thing, but it’s still special. And when you’re buying the materials in bulk you’re dividing the cost,” she says.

Bid on charity auctions

According to Dutch Mendenhall, author of "Money Shackles: The Breakout Guide To Alternative Investing," one of the most thrilling and fulfilling ways to shop for the holidays is to place the winning bid on things you want.

Look into local or online charity auctions. Two examples are GivingLots and CharityBuzz, sites where you can bid on a tremendous variety of goods and services.

“Veteran organizations, local artists or community groups offer incredible, one-of-a-kind items with actual heart behind them,” Mendenhall says.

"For friends or family who deserve something different, these pieces – whether it’s historical memorabilia or handcrafted artwork – make thoughtful gifts. Plus, proceeds support local causes, so your money goes toward something meaningful rather than racking up credit card bills,” he adds.

Savor the festive retail environment

Clearly there are many ways to give to friends and relatives without sacrificing your financial limitations. You can enjoy the season by adopting strategies that make the most sense for you and your wallet.

And even if the things you want to give don't come from shopping malls, that doesn’t mean you shouldn’t go at some point. After all, the festive mood they provide is free.