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Celebrating Budget-Friendly Holidays

A white piggy bank wearing a red winter hat sits on a pile of gold coins against a snowy blue holiday background, promoting a holiday budgeting and financial planning workshop.

How to Keep your Holidays Bright by Avoiding Financial Stress

The holidays are a time for connection, reflection and generosity. Too often, however, they also bring financial stress. Between rising prices, travel costs and the pressure to give, it’s easy for budgets to spiral out of control. The good news? With a few simple strategies, you can celebrate meaningfully without going into debt.

That’s why United Way of Central Alabama’s Financial Stability Services was excited to welcome Andrea Hester of First Horizon Bank for a recent Financial Stability Workshop focused on practical ways to stay on budget this season.

Here are Andrea’s practical tips to keep your holidays merry and debt-free:

Step 1: Know Your Disposable Income

Counting cash at a desk for holiday budgeting and personal finance planning.
Taking a clear look at your income and expenses is the first step to staying on budget this holiday season.

Before shopping or planning festivities, take a realistic look at your budget. Knowing exactly how much you have to work with from the start can help you avoid financial surprises later.

How to calculate disposable income:

  1. List your total monthly income.
  2. Subtract all monthly expenses.
  3. The remainder is your disposable income.

If that number is smaller than you’d like, don’t worry. Awareness is the first step toward change.

💡Smart Budget Tip:

Download this easy-to-use Budget Worksheet that Andrea recommends and start budgeting today. This simple, fillable worksheet helps you compare income and expenses, track spending and see how small adjustments can make a big difference.

Step 2: Cut Costs Without Cutting Joy

Food and Gatherings

The inflation rate for food prices remains high, up 3.1% between September 2024 and September 2025, according to the Bureau of Labor Statistics. But there are still ways to feast affordably.

  • Eat in instead of dining out and cook favorite family recipes together.
  • Host potluck-style meals so everyone contributes a dish.
  • Shop early and compare deals. For instance, Walmart and Aldi are both offering holiday meal deals to feed 10 people for less than $4 per person.
  • Use local food resources if your grocery budget is tight. (See Community Food Bank of Central Alabama resources at right.)
💡Find Central Alabama Food Resources:

Community Food Bank of Central Alabama

Gifts and Giving

When it comes to gift-giving, thoughtful doesn’t have to mean expensive. With a little creativity and planning, you can show your love without overspending.

DIY Santa Claus holiday craft made from folded paper with red hat and white beard, created on a wooden table with colored paper sheets.
You don’t have to spend a fortune to create holiday magic. Homemade gifts and decor are often the most memorable.
Shop Smarter:

To keep gift-giving fun and affordable, consider these smart shopping tips.

  • Set a total gift budget, then divide that amount among everyone on your list.
  • Start early and watch weekly ads and flash sales.
  • Use cashback and rewards apps or credit card points.
  • Shop secondhand sources, such as thrift stores, consignment shops and online marketplaces that often have quality items.
  • Buy in bulk for small gifts and personalize them with tags or ribbon.
  • Exchange experiences instead of items, such as a family game night or a shared meal.
Homemade Gifts

Homemade gifts are meaningful and often cost very little. Try some of these heartfelt, DIY ideas.

  • Homemade treats: Bake cookies, breads, candy or spice mixes and do some creative packaging.
  • Photo-based gifts: Create ornaments, framed prints or memory jars.
  • Handcrafted items: Knit scarves, crochet blankets or make simple jewelry.
  • Personalized stationery: Design notepads, calendars or greeting cards.
  • DIY self-care kits: Assemble sugar scrubs, bath salts or lip balms.
  • Recipe collections: Print and bind favorite family recipes.
  • Gift time and services: Offer babysitting, pet sitting, meal prep or errands; create a coupon book for your services.
  • Upcycled gifts: Turn jars into candle holders, sew tote bags or decorate mugs.
  • Experience gifts: Plan a movie night, game night or nature walk with a handwritten invite.
💡Smart Budget Tip:

Set a spending cap for gift exchanges with family, friends or coworkers. Even better, try a Secret Santa or White Elephant exchange so everyone buys just one gift. It keeps holiday shopping fun, inclusive and budget-friendly for everyone.

Step 3: Boost Your Holiday Income

Look around the house for items you don’t use anymore. Just as you search Facebook Marketplace for great finds, others may be looking for your unused items.

If you want to stretch your budget, consider trying the following short-term ways to earn extra cash.

  • Declutter and sell items online. Your unused items could make great gifts for someone else.
  • Ask about overtime or side projects at work.
  • Apply for seasonal jobs. Many stores and shipping centers need holiday help.
  • Monetize your hobbies. If you bake, craft or clean, offer your services locally.

Step 4: Enjoy Free and Low-Cost Holiday Fun

Central Alabama offers many festive, free holiday experiences you can enjoy without breaking the bank.

  • Visit holiday markets, winter festivals and family events.
  • Attend local tree-lightings, parades and seasonal celebrations.
  • Drive through neighborhoods or designated routes to enjoy holiday light displays.
  • Explore library programs, parks and recreation events and other free community activities.

Check out these local sources for updated lists of free and affordable holiday events.

State and Regional
Birmingham Metro (Jefferson County)
Blount County
Chilton County
Shelby County
St. Clair County
Walker County

Step 5: Remember the Reason for the Season

A family in colorful holiday sweaters poses playfully in front of a staircase, smiling and gathered close together.
The holidays aren’t about perfection. They’re about being close to, and having fun with, the people you love.

The holidays aren’t about how much you spend. They’re about connection, gratitude and giving back. Small acts of kindness, such as sharing a meal, volunteering your time or supporting a local cause, can bring the greatest joy. When we focus on being present with the people who matter most, the season feels lighter, warmer and more meaningful. Whether you’re enjoying a simple family moment, creating memories through traditions or finding ways to help neighbors in need, the heart of the holidays shines through in the ways we show up for each other.

Andrea Hester, presenter for United Way of Central Alabama’s Financial Stability Services workshop ‘Debt-Free Holiday Cheer,’ wearing a bright pink sleeveless top against a light gray background.

About the Presenter:

Andrea Hester is the VP and CRA Community Development Manager at First Horizon Bank, where she connects her team and community partners with impactful financial literacy and service opportunities, facilitates community development loans and guides strategic investments that strengthen local markets.

With a background in education from the University of Alabama, Andrea discovered her passion for financial literacy through her journey in banking. She believes financial education empowers individuals to build brighter futures and fosters more resilient communities. Drawing from personal and professional experience, she is committed to helping individuals and families strengthen their financial wellness through practical, accessible guidance.