8 shopping tips to save money this holiday season
The season of joy and celebration can also be a time of financial stress. With many Canadians still feeling the effects of higher prices in 2025, it’s easy to overspend and end up with a hefty credit card bill in the New Year. But with a little planning and some smart strategies, you can save money and still have a wonderful holiday season.
Many Canadians are worried that inflation will make shopping for the holidays harder this upcoming season. Deloitte Canada’s latest holiday outlook shows that 71% of Canadians expect prices to climb, while nearly four in five shoppers (78%) say they’ll compare prices across more retailers this year. Despite financial pressure, many households still plan to spend — but they’re being far more intentional about how they do it. Before you start, here are a few of the best Christmas shopping tips to help you stay on track and protect your budget.
1. Plan ahead and set up a budget
It’s a lot harder to overspend when you’ve made a list and checked it twice. Start by creating a list or spreadsheet that accounts for all facets of your seasonal spending, from entertaining and travel to presents for friends, family, party hosts, and the office Secret Santa exchange.
Review any digital subscriptions or recurring expenses you may want to pause temporarily; small monthly charges add up quickly during the holidays. Do your research on gifts and prepare a shopping list, mapping out the rough costs of each item to make sure it fits within your overall budget. With everything accounted for, you’ll have a more efficient shopping experience and feel good about what you’re buying.
2. Leverage money-saving apps and websites
With your budget set and your list in your pocket, consider utilizing money-saving apps and websites that aggregate promotions and/or coupon codes for thousands of major retailers. Websites such as Finder and RetailMeNot are searchable by store, product or category, listing all applicable coupons and promo codes. Honey, a browser extension, automatically finds coupon codes and applies them when you check out, a great tool when shopping for the holidays.
3. Don’t be swayed into overspending by “deals”
The Christmas shopping season is full of tactics designed to make you spend more: special-edition gift sets, bundles, free shipping thresholds, flash sales, and “buy 3, get 1 free” promotions, among others. Retailers are also using increasingly personalized AI-driven recommendations this year, which can make impulse buying especially tempting.
But the bottom line is these “deals” won’t save you money if you end up spending more than you originally planned. Sales and promotions are probably the most common reasons to get derailed, but you have a defence: your pre-planned budget, shopping list, and a little mindfulness gleaned from this guide.
Also read: What Canada’s 2-month GST/HST tax break means for you
4. Trim your list
While it's a nice thought to buy gifts for everyone in your life, it can also end up being quite expensive once your credit card statement arrives. If you typically spend money on extended family and friends outside your inner circle every year, consider trimming your list down to the people nearest to you (immediate family, close friends). Not only will you end up spending less, but the added stress of having to buy for so many people will be drastically reduced.
Many families are opting for organized gift exchanges with a spending cap. Tools like Drawnames and Elfster make it easy to coordinate a Secret Santa, allowing you to keep the fun of gift-giving without the financial strain.
If you still feel bad about leaving certain people out, a much cheaper way to still include them in your holiday gift giving is to bake or cook something they love. It'll likely cost much less than a store-bought gift and will have that extra-special personal touch, which leads to our next point:
5. Mix it up with non-store bought gifts
Not every gift needs to be something bought at a store. In fact, gifts of time or homemade items are often appreciated much more by family and friends.
If you've got a crafty side, consider making something simple and fun to give away as holiday presents. This could be something sewn or knitted for those upcoming winter months, or a piece of art a loved one can hang on their wall to remind them of you. Get creative!
If you'd still like to spend money but can't add any more expenses to your credit card bill, consider giving an IOU for dinner or drinks in January or February. This will still be greatly appreciated (who doesn't like being treated?) and will also give you a small buffer of time to allow for a bit of financial recovery.
6. Use a rewards card strategically to earn cash back or points
If you pay your balance in full every month, using a rewards credit card can help you stretch your holiday spending further. Cash back and travel rewards credit cards often offer high earn rates on common holiday expenses like groceries, dining, and online purchases.
But beware of the temptation to overspend — aimless and unplanned shopping is usually where extra purchases sneak in, so remember to stick to your pre-planned gift list.
7. Take advantage of your loyalty program’s e-store
Before going to the mall or directly to a retailer’s website, check if your credit card loyalty program has an e-store or online shopping portal. For example, if you have a Scotiabank credit card, you can earn bonus points by shopping for the holidays at popular merchants online through the Scene+ Rakuten portal.
E-stores tend to offer bonus points and exclusive deals you wouldn’t otherwise see if you shop directly from stores. If you plan to make a purchase anyway, this is an easy way to earn more on every dollar.
8. If you have a travel credit card, don’t redeem your points for gift cards or merchandise
Travel credit cards provide the best value when using points to book flights, hotels, and vacation packages. While most travel rewards programs like Aeroplan also allow cardholders to redeem from a catalogue of gift cards and merchandise, you’ll usually get worse value for your points when redeeming for non-travel rewards.
If you have points in the bank, don’t spend them on holiday gifts — save up those valuable points for next time you go on vacation, along with the points racked up from budgeted holiday spending.
Team's choice
If you’re wondering which card to use when shopping for the holidays, Ratehub's Director of Everyday Banking, Natasha Macmillan, recommends using the Scotia Momentum Visa Infinite credit card. This card offers a great welcome bonus: Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Plus, it also offers 4% cash back on groceries, which can prove to be a big money saver for your holiday hosting duties.
Best for Groceries & bills
based on spending $2,200/mo after $120 annual fee
- Earn rewards
1% – 4% / dollar spent
- Annual fee
$120 $0 first year waived