How to Decorate for Christmas on a Budget

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Christmas is that time of year when we feel the need to spend money left and right. But you can host a party and decorate for Christmas without breaking the bank with these easy tips!

This is the time of year when I stand in my living room, spinning in a circle, going “Hmm, I think that corner needs a little something more.” More garland, more lights, more ornaments, more obnoxious motion-sensored dancing santas…you get the picture.

Of course, my bank account is loudly screaming “No! You can’t have more!” But I have Christmas music on full-blast, which thankfully drowns it out.

In all seriousness, Christmas and New Years are a huge money suck. We find reasons and places to spend money everywhere during the winter holiday season. The gifts, the parties, the new outfits, the ugly sweaters, the tree, the food, the drinks…Maybe even the music if you suddenly decide you *need* every Pentatonix Christmas Album for your holiday party.

If you’ve got your home all decorated, why not plan a cozy Holiday Movie Night to show off your decor!

But decorations are one of the areas you can definitely cut down on spending. Try looking for cheaper deals. Or, better yet, go for some DIY crafts!

Looking to save money on more than just decorations? Check out these 6 Best Affordable Alternatives to Champagne, some Make-at-home Christmas Cocktails and these Big Batch Holiday Drinks for Parties.

General Tips for Decorating for Christmas on a Budget:

  • Think about what you already have. Lots of wrapping paper? Extra bows and ribbons? Old gift boxes? Candy canes from last year? Get creative and use them!
  • Limit yourself to only buying one new decoration a year. Pick one quality piece you really love each year and slowly grow your collection. (Alternatively, pick a few smaller, cheaper decorations to get all at once and skip all the big ones for a year.)
  • Food is a universal Christmas standby. Food is great. For everything. Christmas cookies in particular make personal gifts, yummy desserts, and unique decorations!

DIY Christmas Decorations on a Budget

Rather than spending tons of money on new and fancy decorations, take a look at what you already have and try making some of your own!

Christmas Chains

You made these garlands with construction paper as kids. Time to bring back that old classic, but this time, upgrade it!

Buy some fancy paper at a local paper shop. Or, get some double-sided wrapping paper and use strips of that instead. You can always use the rest for wrapping presents.

Amazon also has Christmas chain kits, so you can skip all the annoying cutting and measuring.

Decorate your Books

I’ll be honest, I have my qualms about this one. As an avid reader, anything that could possibly demean a book seems like a bad idea to me. Books are for reading and worshipping. However…at Christmas…

If you are anything like me, you have too many books for your bookshelf, right? And there’s a book or two on your bookshelf you’ve read before, yes? Are you going to need to read it again before Christmas? Probably not. Wrap it up in festive Christmas wrapping paper and use it as a decoration! Just be sure to unwrap it and put it back on your shelf when the holidays are over.

Adamantly against the ill treatment of books? Wrap up pictures or picture frames instead. Hang them back up on your wall.

One final note, you can use seasonal books on display as well, which might be less upsetting. If you keep a book on your coffee table or end table, change it out for the season. Put out your copy of Dickens’ A Christmas Carol or Seuss’ How the Grinch Stole Christmas or even Clarke’s ‘Twas the Night Before Christmas poem. 

Daisy’s personal favorite display book is The Cat Who Came for Christmas by Cleveland Amory. If you love true animal rescue stories, this is definitely a book for you! It tells the adorable first year of Amory (founder of the Fund for Animals) and his charismatic cat, Polar Bear. Hilarious and heartwarming, and full of historical facts about cats. Amory wrote two more books about his life with Polar Bear, so you can invest in the whole series if you love him!

Repurpose Gift Bags and Boxes

Save all your old gift bags and pretty gift boxes. But before you go stuffing them with presents and hiding them for Christmas, use them as decorations! Pretty boxes can be placed under the tree with absolutely zero effort. (You can always use them to wrap presents the night before.)

Stuff empty gift bags with festive tissue paper and place them under the tree too, until you need them for wrapping!

Wrap Your Doors

For those of you who have massive amounts of wrapping paper of tons of extra ribbons, try wrapping up a door or two!

You can wrap the whole door in wrapping paper, although if you do more than one or two you’ll probably end up spending more money replacing all that paper.

The even cheaper version is just wrapping some ribbon around your door, like a present, and attaching a pretty bow.

Gingerbread Houses

Yes, you can go buy those gingerbread house kits. They are easy to follow and exceptionally cute. (Elf on a Shelf gingerbread kit is my particular favorite. It comes with a gummy elf!) 

Note: Buy these from a store near your home. Don’t order on Amazon. Most of the review indicate them come broken! Do yourself a favor and don’t waste the money.

Instead, why not just make your own gingerbread house! It will be way cheaper than buying a full kit, since you probably have most ingredients in your kitchen this time of year. And you’ll finish with a satisfying sense of accomplishment.

I use the construction gingerbread from King Arthur’s Flour. It’s the perfect consistency for standing up and gluing together. (Just make sure you measure your pieces before you start cutting!) Construction gingerbread will be a little less flavorful, though you can always adjust the recipe if you plan on eating your house later.

But if you’re planning on leaving your gingerbread cottage up for a few weeks as decor…maybe don’t eat it. Use the less flavorful version so you don’t waste any spices!

Use Edible Decor

Doing your Christmas baking before your party? Use your fancy, cute little cookies as decorations! Of course they can obviously dress up the dessert table. But try leaving baskets or trays around for extra holiday flair.

My favorite and super easy trick is filling a metal bucket or decorative basket with snowball cookies. (Also known as Mexican Wedding Cookies, Italian Wedding Cookies, Sandies, Pecan Crescents, Russian Tea Cakes – they’re all the same.) Label them as snowballs and sift a little extra powdered sugar over the top. It’s the perfect easy winter decoration!

Want to go the extra mile? Take hard, shape-able cookies (like sugar cookies or gingerbread) and cut small holes in the top of your shapes before they bake. Once they are cooled and decorated, thread a bit of ribbon through the hole and you’ve got yourself an edible ornament! Use them on the tree, the wreath, the garland, as table settings, even as gift labels!

You can get the recipes for both snowballs and gingerbread cookies in my Christmas Cookie Collection!

Hot Chocolate Bar

Another easy low-cost option: make your own hot chocolate bar. 

Clear a table or shelf. Put out your cutest mugs, Christmas or otherwise. A jar of marshmallows and some candy canes for stirring are helpful additions.

And don’t forget the chocolate! Use some pretty Christmassy tins of hot chocolate if you have them. Otherwise get out your box of Swiss Miss packets and arrange them in a Christmas basket.

Bonus points if you dump out all those Swiss Miss packets and put them in a glass jar for a prettier display!

Add a few decorations like Christmas ornaments, bits of garland, and candles.

Note: You can also decorate with wine bottles for a “winter bar.” Fill empty wine bottles with fairy lights and wrap a bow around the top. Display them next to your collection of these Best Holiday Wines, 6 Affordable Champagne Alternatives, or Top 5 Winter Scotches that you purchased all at once…which might be why you’re budgeting decorations now…

Buy on a Budget: Christmas Decorations under $20

Whether you have boxes of decorations or none at all, there’s always the draw to accumulate more shiny baubles and pretty Christmas decor. 

Tiny Touches

Focus on the little things. Each room has something small you can get to liven up the festive spirit. Try examples like:

These guys are fairly cheap, you can get something tiny for each room for under $20.

Even better for those of you who prefer not to overwhelm your home with Christmas, smaller decor is subtle and classy.

Garland

Yes, evergreen garlands are beautiful, but they’re expensive.

Tinsel garlands are cheaper and they’ll last for years. (My parents still have some strands from when I was eight years old!) Get them in a variety of colors and styles.

Used sparingly, tinsel can look very classy, bright, and festive! Wrap around a picture frame, up a bannister, or around a mirror for a little holiday sparkle. 

If you’re like me though, you’ll put it on every single doorway for an extra garish Christmas! Classy decorating goes right out the window during the holidays.

Felt Bows

Bright red felt bows are one of the most classic Christmas decorations. But you can also buy them in different colors

Conversely, buy any shade of ribbon you want and make your own bows, as Crystal does so beautifully in her YouTube tutorial.

Christmas isn’t the only holiday where you can cut back. Learn how to host a whole Friendsgiving on a budget so you can spend even more on Christmas next year! (Kidding…sort of.)

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