Saving & Spending Budgeting & Expenses

10 Ways to Afford the Holidays on Just Social Security

You may be surprised how much you can save by getting creative, buying in bulk, and tracking rewards.

By Laura Gesualdi-Gilmore

Edited by Andrea Basse

Updated Nov. 26, 2025

The holidays tend to be a season of spending and splurging. Retailers depend on it, but for retirees trying to live off of just Social Security, frivolous spending is not always possible. With the average Social Security benefit sitting around $2,000, stretching that budget for holiday spending may seem out of the question — especially if you want to avoid wasting your retirement savings.

However, there are some simple steps you can take to afford a happy and hearty holiday season while living off Social Security. Here are 10 ideas to help you handle the holidays without overspending.

Get instant access to hundreds of discounts

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.

Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

Become an AARP member now

Start with a budget

Between gifts, holiday dinners, traveling, and decor, there is a lot of temptation to spend (and overspend) during the holiday season. In fact, the National Retail Federation expects American consumers to spend more than $1 trillion during the holiday season for the first time this year.

Creating a clear budget that takes into account the amount you receive each month from Social Security and the realistic expenses you can afford is the first step to keep you on track throughout the season.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Take advantage of senior discounts

From restaurants like Denny's and Chili's to retailers like Kohl's and Michaels, many companies offer senior discounts — and some even start for customers as young as 50. Before making your holiday purchases, see if you can get some cash off.

Seniors can also save on travel, as Amtrak, Marriott, and many other companies offer discounts.

Track sales events

Everyone knows about Black Friday, but there are many savings events leading up to the holidays that can be taken advantage of to help you stick to your budget.

Signing up for email alerts from your favorite stores can help you track sales, savings opportunities, and price drops.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Add meal planning to your budget

The holiday budget should not focus solely on gifts or travel, especially if you are hosting or planning to bring special dishes to your host's home.

The cost of a hearty holiday dinner can add up quickly, so while budgeting, consider what could be subbed out for a cheaper alternative, and if you can clip some coupons to bring the total grocery bill down.

Make DIY decorations (or gifts)

If you have a bit of creative flair, you may be surprised by how much you can save with some do-it-yourself projects. Wrapping paper, ribbons, pinecones, and even old jars and bottles can be finessed into stunning decorations.

And DIY presents, such as blankets, candles, and boxes of sweets, can help you save a lot, as well.

Look up free entertainment options

Holiday events can get pricey, but you may be surprised by what you find if you shop around for free events. These days, even smaller cities and towns offer free attractions for families around the holidays — from tree lighting ceremonies to outdoor holiday concerts.

Even driving around looking at Christmas lights can make for a festive, fun, and free night.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

Prioritize time together

Likewise, prioritizing time with your loved ones, perhaps by taking advantage of free holiday events together, can help you stay on track with your holiday budget.

Despite the temptation, the holiday season doesn't have to be focused on consumption.

Avoid using your savings and credit cards

The purpose of the holiday budget should be to avoid dipping into savings or using credit cards to cover purchases you can't really afford. When you are living on Social Security in particular, savings and investments should not be tapped into before you planned to, unless there is an emergency.

Think about whether that holiday season splurge is really worth the interest that will start racking up on your credit card come January.

Make use of credit card rewards

While you should not whip out the plastic to pay for holiday purchases that are out of budget, the holiday season can be a great time to cash in on credit card rewards.

Depending on the type of credit card you have, rewards you've racked up may be redeemable for cash back, travel, and even gift cards (and those gift cards can make great presents for your loved ones!)

In 2023 Americans lost over $10 billion to identity theft and fraud

That's right. According to the FTC, Americans lost over $10 Billion to fraud and identity theft in 2023.

But you can safeguard your data with all-in-one identity theft protection services from Aura which comes with $1,000,000.00 in identity theft insurance¹ <p>Identity Theft Insurance underwritten by insurance company subsidiaries or affiliates of American International Group‚ Inc. The description herein is a summary and intended for informational purposes only and does not include all terms‚ conditions and exclusions of the policies described. Please refer to the actual policies for terms‚ conditions‚ and exclusions of coverage. Coverage may not be available in all jurisdictions.</p> per adult, to cover you should you have eligible identity theft-related losses.

An individual plan starts at $9 per month, and you can choose a family plan that outmatches most others - includes Dark Web monitoring to scour data breaches and leaks for your sensitive personal data — such as Social Security numbers (SSN), Medicare information, and phone numbers.

Before you make your next online purchase, protect what you’ve built for a fraction of what it could cost you if your data were compromised.

Save up to 68% when you sign up for protection today!

Buy in bulk

From food to decor to booze, buying in bulk can make it easier to stick to a holiday budget. Heading to the discount liquor store, for example, and buying a case of wine so you can bring a bottle to different holiday events or even give them out as gifts will be much cheaper than buying each bottle separately.

Bottom line

The first step when it comes to affordability is to create a holiday budget and to make sure you account for all holiday spending — from gifts to food to holiday events. Taking time to map everything out isn't just good planning; it's a smart way to save money because it helps you see exactly where your dollars are going.

When you're living on just Social Security, this kind of structure can make the holidays feel far more manageable. You'll have a clear picture of where costs can be cut and what's a top spending priority.

More from FinanceBuzz: