How to throw a holiday party on a budget when everything costs more

Throwing a party may seem simple: just send a Partiful invite to a bunch of people and hope they show up.

But hosting a gathering is more than an invite. It comes with a price tag, even if it’s meant to be low-key.

Things like disposable plates and cups, decorations, snacks and party favours add up and can take a bite out of money meant for essentials. That may sting more for students living alone for the first time and young adults just entering the workforce. 

Experts say setting expectations and a budget could save hosts from dealing with the aftermath of a financial mess.

Kalee Boisvert, a financial adviser at Raymond James Ltd., said people often get in their heads about budgeting — like it’s homework. 

But it can be as simple as researching online what things cost and writing down how much you’re willing to spend on specific categories on your phone’s notes app.

“It really just means helping yourself set the expectations of where you want to land approximately on your expenses.”

Whether the party was a last-minute decision or something planned weeks ago also affects budgeting, said Tanya Reynolds, senior vice-president with MNP’s consumer and corporate insolvency group.

“If you’re planning a bit out, then perhaps that budget can be a little bit bigger because you’ve been saving for it,” she said. “But if it’s a last-minute decision, then really recognize what you have available to spend.”

Deciding the kind of party helps zero in on the budget, she said. For example, whether it’s a sit-down dinner or a snack bar-style gathering can sway your food spending. If it’s a holiday dinner with friends, are you planning to foot the bill for all of it or is it a potluck?

“Your budget can be whatever you can afford and what seems reasonable to do without spending more than you have, without using credit, and without taking from somewhere else to cover the cost,” Reynolds said.

Food is often the most expensive part of a gathering, and with climbing food prices, the pressure on a host to buy snacks or set up a charcuterie board can become overwhelming.

The cost of food started to add up for Reynold’s 21-year-old daughter, as she prepared for a dinner party for eight a few weeks ago.

“If you’re just going out and buying produce for yourself, maybe it doesn’t seem so extravagant, but when you’re purchasing enough for eight people, you can really see the cost of that go up,” she said.

Offering an open bar and trying to emulate esthetics from social media can also lead to mounting costs for the host. 

Reynolds said she helped her daughter set a budget and they came up with a plan to share some costs with the guests.

“She asked them to bring an item to the table, which was going to keep with her theme,” alongside a bottle of wine, Reynolds said.

Together, they crowdsourced decorations from friends and family and filled in the gaps with second-hand items from online marketplaces.

Tempering expectations is key when social media trends dictate what your parties should look like, said Janine Rogan, a chartered professional accountant and founder of The Wealth Building Academy.

She said a gathering can be as simple as each person bringing their favourite cheese and calling it a night.

Activities, such as painting ornaments for a Christmas tree together or some kind of craft activity indoors, would also allow quality time with friends without spending a fortune on entertainment, she said.

“Staying within your budget is obviously more important than spending more than you have to try and impress people,” Rogan said.

Boisvert agrees. She recalled a client who wanted to purchase a new couch before she hosted her family for Christmas.

“Really ask yourself: Would I still be buying this if I wasn’t having people over?” she said.

She suggested not putting pressure on yourself as a host to be elaborate and stick to being casual; otherwise, “you’ll find yourself probably avoiding it altogether.”

“Then maybe you lose the opportunity of having fun events with other people.”

This report by The Canadian Press was first published Oct. 12, 2026.