How to Celebrate Thanksgiving Without Going Into Debt

Thanksgiving can look inexpensive on the surface. There are no presents, no costumes and no elaborate decorating spree — just a turkey, a few side dishes and the people you care about gathered around the table.

But the bill may be higher than expected, especially because groceries have become a strain for many households. Food-at-home prices climbed 2.2% over the 12 months ending in August, according to the consumer price index from the Bureau of Labor Statistics.

Some families are even turning to financing for everyday essentials. In a July poll of 1,164 likely voters conducted by Data for Progress, 46% of buy now, pay later users said they had used those loans to buy groceries. That is for regular food shopping, not the extra items that often show up on a Thanksgiving list.

Key Takeaways

• Thanksgiving usually costs more than the meal itself. In a Talker Research survey run for Chime, people expected to spend an average of $175 on food and $110 on drinks, with the total rising to $952 once decorations, other extras and travel were included.
• If guests offer to bring something, give each person a specific dish so you do not pay for everything or end up with duplicates.
• Gasoline prices rose 27.4% over the 12 months ending in August, according to the Bureau of Labor Statistics, so check travel costs early and skip the trip if it would throw off your budget.

The Danger of Financing Groceries on Credit

Putting groceries on a payment plan comes with its own risks. A recent Federal Reserve survey found that one in five Buy Now, Pay Later users said they used BNPL for groceries and food delivery during the previous year. Those users were also more likely than others to have trouble repaying and to face extra fees.

That is why staying disciplined matters so much. In many ways, Thanksgiving is one of the easier holidays for budget-conscious households because there are no gifts to buy. Still, it also serves as a preview of one of the biggest money hazards of the season: Black Friday.

Holiday debt has a way of lingering long after the celebration ends. A few days of spending in late November can show up on statements well into the new year, often with interest attached. Money not spent now, according to Accredited Debt Relief, can instead be used later to pay down other holiday spending regrets.

Say Yes When Guests Ask What They Can Bring

When someone offers to bring a dish, the automatic response is often something like “just your smile,” but that rarely saves money. More often, the guest brings something you do not need or something you already have plenty of, such as dessert. If you are hosting, there is nothing wrong with asking others to contribute. The important part is to be clear in advance. If someone asks what they can bring, assign them something specific so you are not paying for everything and then receiving extras you did not want.

It helps to have a plan ready before anyone asks. If you know your guests well, you can match the job to the person. Ask the creative friend to bring a centerpiece or floral arrangement. Ask the baker to handle dessert, and be clear about which dessert so you do not end up with duplicates. If someone has a garden, invite them to make a salad with ingredients from it. If a friend loves wine, that is an easy assignment too. Every item someone brings removes pressure from your budget and saves you time.

If you are going to someone else’s gathering, take the same approach in reverse and offer to bring something specific. If you are already baking for another event, suggest bringing that same item. Buying ingredients in bulk and using them for more than one occasion makes your shopping more efficient and less expensive. In both cases, the goal is to stay in control of what is brought so you can stay in control of your own spending.

Why Thanksgiving Costs More Than Food Alone

One of the less obvious parts of Thanksgiving is how many costs appear outside the meal itself. Even without gifts, holiday spending can stretch well beyond groceries.

• Travel
• Hostess gifts
• Alcohol and beverage costs
• Decorations
• Outfit
• Black Friday spending and more

There may be transportation costs, gifts for the host and, of course, the shopping weekend that follows. Stores also tempt shoppers with online sales that begin before the holiday is even over.

3 Ways to Enjoy Thanksgiving Without Taking On New Debt

1. Break down your budget before you shop

Before buying anything, look back at your larger holiday budget. The season is just getting started, so staying on track now matters. Include not only gifts, but also hostess gifts, travel and any clothing you may need. Be honest with yourself: will you be tempted by early Black Friday deals, or can you stay away?

Be candid with family and friends about who will host. Just because you have hosted before does not mean you need to do it again. You can kindly pass the responsibility to someone else and bring a dish instead. That can free up money to put toward debt.

2. Take control of travel costs

Fuel prices have been rising and can be one of the first holiday expenses to cause stress. Gasoline was up 27.4% over the 12 months ending in August, according to the Bureau of Labor Statistics. Travel often becomes the biggest Thanksgiving expense, but it is also the area where you may have the most flexibility. Plan early and do the math. If you need to fly, compare less popular travel days. If that means missing work after the holiday, ask whether remote work is possible or whether a couple of vacation days makes sense. The savings may be worth it, and you may gain more time with family.

If the trip is far too expensive and would wreck your budget, do not force it. A tough but responsible choice may be better than carrying stress into the holiday. Family and friends who care about you would rather see you avoid financial strain. A video call may not feel ideal, but you can make the trip another time when costs are lower.

3. Talk honestly about your finances if you need to

One way to reduce stress is to stop hiding your situation from the people closest to you. It is understandable to want to stretch your budget or even borrow rather than admit you cannot participate as fully as you would like. A survey from Accredited Debt Relief found that 37% of adults carrying at least $10,000 in debt said they had not told their parents the full amount they owed.

You do not have to share exact figures or ask for help. A simple statement works: “We are focused on paying down debt this year, so we are keeping things simple.” That is honest without inviting debate. It may also encourage someone else to admit they are watching their own spending too, whether to pay down debt or save for something else. Everyone has different money priorities.

Frequently Asked Questions About Thanksgiving Spending

How much does Thanksgiving dinner really cost?

A basic menu for 10 cost about $55 in groceries last year, according to the American Farm Bureau Federation. In a Talker Research survey for Chime, respondents expected to spend an average of $175 on food and $110 on drinks, with the total reaching $952 once decorations, other extras and travel were included. With the average host serving eight people, food alone comes to about $21.88 per plate, and drinks push that to roughly $36 per person.

Actual costs vary depending on where you live, where you shop and what you serve. But prices have been moving upward. Consumer price index data from the Bureau of Labor Statistics showed these Thanksgiving-table items changing over the 12 months ending in August:

• Other uncooked poultry, including turkey: up 11.5%
• Coffee: up 6.1%
• Ham: up 4.2%
• Milk: up 4.1%
• Canned fruits and vegetables: up 4%
• Bread: up 3.8%
• Potatoes: up 3.6%
• Fruits and vegetables: up 3.2%
• Cereals and bakery products: up 2.6%
• Cheese and related products: down 3.8%
• Eggs: down 23%

Meat prices differ a lot by cut, and turkey was the biggest gainer in this group.

Should Thanksgiving travel go on a credit card?

Only if you can pay it off in full. Using a rewards card can make sense, but only with one major condition: the balance must be paid in full. If you carry a balance, the interest can quickly outweigh any benefits. If you already have credit card debt, charging travel is not worth it.

How can you avoid overspending on Black Friday, especially with early sales?

Make a specific shopping list and share it with someone who will help keep you accountable. If you are not sure about a purchase, wait 24 hours before buying it. Deals often last longer than they seem. If you are worried about being pulled in by the hype, delete shopping apps, unsubscribe from promotional emails and texts, and remove saved credit card information from your phone so purchases take extra effort.

If you still feel tempted, hand your phone to a trusted friend or family member who can give it back for important calls but otherwise help you stay focused on the meal and the people around you.