The holiday season is a time for celebration, but it can also come with hefty expenses. Hosting a Christmas party on a tight budget doesn’t mean sacrificing fun or festivity. With a little creativity, you can host a beautiful holiday gathering using affordable items from the dollar store. These 20+ budget-friendly ideas will help you throw a memorable and stylish Christmas party that won’t break the bank!
1. Budget-Friendly Christmas Party Invitations

Invitations set the tone for any party, and with a few dollar store supplies, you can create festive invitations that are both charming and cost-effective. Begin by picking up blank cards, glitter, ribbon, stickers, and markers from the dollar store. With a bit of time and imagination, you can handcraft unique invitations that match the theme of your party, whether it’s a winter wonderland or a classic red and green design.
For a more personal touch, consider creating DIY embellishments such as small bows or glitter accents. You can even make the invitations interactive by adding little pockets with tiny treats or confetti. This personal effort will delight your guests, and since you’re using inexpensive materials, it’s a great way to stay within your budget while adding that special festive touch.
If you’re short on time, you can opt for a more straightforward design using printable templates. Many free templates online feature Christmas-themed graphics, which can be printed on plain card stock from the dollar store. You can then personalize them with hand-drawn elements or festive stickers for a DIY look that’s still budget-friendly.
2. Dollar Store Christmas Party Decorations

When it comes to decorating your space for a Christmas party, dollar stores are a goldmine. You can find everything from tinsel and garlands to wreaths and holiday-themed balloons at incredibly low prices. Use these decorations to transform your party venue into a winter wonderland. For a stunning look, hang shimmering garlands across doorways or drape tinsel on tables and chairs. These elements can create a magical, festive atmosphere without costing a fortune.
In addition to traditional decorations, get creative by incorporating dollar store items into homemade centerpieces. Consider using mason jars or small vases filled with faux flowers, pinecones, or glittery ornaments. You can also make your own wreaths by combining dollar store greenery with ribbons or ornaments. Adding a few carefully placed lights can further elevate the ambiance, creating a cozy and inviting atmosphere for your guests.
Another fun idea is to use inexpensive party-themed items, such as paper snowflakes, for hanging decorations. You can also use small figurines like Santa, snowmen, or reindeer to add personality to your party space. By combining multiple affordable elements, you can create a cohesive and festive look that is sure to impress your guests.
3. DIY Christmas Photo Booth

A Christmas photo booth is a fun way to capture memories at your party, and it doesn’t have to be expensive. Using dollar store props such as Santa hats, reindeer antlers, or elf ears, you can easily create an interactive photo station for your guests. Start by setting up a corner with a festive backdrop—this can be as simple as a plain sheet or a dollar store tablecloth adorned with snowflakes or Christmas patterns.
To add some extra fun, include props like oversized glasses, candy cane cutouts, and even fake snow for added ambiance. If you have a camera or smartphone on hand, consider using a tripod or a selfie stick to make it easier for guests to snap their own pictures. You can even set up a small sign with a fun holiday quote like “Merry and Bright” or “Santa’s Helpers” to encourage guests to pose and have fun.
As an added bonus, you can provide printed photo frames (also available at the dollar store) for guests to take their photos home as party favors. You can easily create a “photo wall” where guests can hang their pictures and share memories with each other throughout the night. This photo booth will be a hit and make your Christmas party even more memorable!
4. Cheap Christmas Party Favors

Party favors are a great way to thank your guests for attending, but they don’t have to be expensive. Dollar stores are a fantastic place to pick up affordable party favors like small toys, mini ornaments, or bags of candy. You can easily create personalized party favor bags by filling them with a mix of goodies, such as holiday-themed chocolates, candy canes, or mini figurines.
To make the favors more festive, consider decorating the gift bags or boxes with ribbons, stickers, or glitter. You can also tie each favor with a small tag that includes a personalized message or thank-you note. These small touches add a personal flair and show your guests that you appreciate their presence at your party.
If you want to take your favors a step further, consider creating themed gift bags based on your party’s decor. For example, if you’re going with a rustic or farmhouse theme, fill the bags with mini pinecones, cinnamon sticks, or small burlap sacks. These thoughtful additions will make your party favors feel more special, even though they were made on a budget.
5. Festive Christmas Party Cups and Plates

Serving food and drinks at your Christmas party can be a hassle, but dollar store cups and plates can make it easy and affordable. Dollar stores offer a wide variety of Christmas-themed paper plates, cups, and napkins, often featuring festive designs like snowflakes, Santa, or reindeer. These items are not only practical but also help to enhance the overall aesthetic of your party.
Mix and match different items to create a cohesive and fun look. For instance, pair red and white striped napkins with green cups or add festive details such as ribbon or glitter around the edges of the cups and plates. If you’re serving a buffet-style meal, consider using paper bowls or trays, which are both inexpensive and easy to clean up after the party.
To elevate the look, add a few personalized touches by writing guest names on the cups or creating custom drink stirrers using straws and dollar store decorations. These small additions can make your party feel more organized and festive, all without costing much. Guests will appreciate the thoughtfulness of your partyware, and you’ll save time and money in the process.
6. Christmas Party Punch on a Budget

A signature Christmas punch can be the centerpiece of your drink station without draining your wallet. Use a large plastic drink dispenser from the dollar store, and fill it with a simple, holiday-themed punch made from inexpensive ingredients like fruit juice, soda, and fresh fruit. Cranberry juice, orange juice, and ginger ale are great base options that can be combined to create a festive drink. You can also add in some sliced lemons, oranges, and cranberries for a splash of color and flavor.
For an alcoholic punch, consider adding inexpensive rum or vodka to the mix. Dollar store items like mint leaves or cinnamon sticks can be used to garnish the drink and add a bit of holiday flair. If you prefer non-alcoholic options, you can make a “mocktail” version that’s just as refreshing and fun to drink, especially for guests with children or those who prefer to stay sober.
To further enhance your drink station, consider offering a variety of drink options that fit the holiday theme. Alongside the punch, set up a hot chocolate bar with marshmallows, whipped cream, and peppermint sticks. This will give your guests a few options to enjoy throughout the night, all while keeping costs low.
7. Holiday-Themed Party Hats and Headbands

Party hats and headbands are a fun way to get everyone in the holiday spirit, and they’re incredibly affordable at the dollar store. You can pick up packs of Santa hats, reindeer antler headbands, or festive crowns that guests can wear throughout the event. These playful accessories not only make the atmosphere more fun but also add an extra layer of festivity to your photos and interactions.
To personalize the hats, consider adding embellishments like glitter, ribbon, or small ornaments from the dollar store. These simple touches can turn basic headgear into something unique and memorable for your guests. You can also encourage guests to decorate their own hats with markers or stickers as a fun activity during the party.
If you want to go the extra mile, consider making your own DIY party hats using materials from the dollar store, such as construction paper, felt, or foam sheets. Cut out different shapes and glue them together to create custom designs that match your party theme. Not only will this save money, but it’ll also provide a fun crafting experience for your guests to enjoy.
8. Christmas Tree Craft Station

A craft station is a fantastic way to entertain guests, especially if you’re hosting a family-friendly party. Set up a DIY Christmas tree craft station using dollar store supplies like foam sheets, stickers, markers, glitter, and small ornaments. Provide your guests with pre-cut foam or cardboard tree shapes that they can decorate and personalize. This can keep both kids and adults engaged as they create their own holiday masterpieces.
If you want to add a little variety to the craft station, you could offer other shapes like snowflakes or stars to decorate as well. You can also include simple materials like popsicle sticks to make miniature trees or ornaments. The best part? Once they’re finished, guests can take home their creations as a party favor, adding an extra level of excitement to the event.
For an added interactive element, consider turning the craft station into a contest. You can create a few categories, such as “Most Creative Tree” or “Most Festive Ornament,” and offer a small prize, such as a dollar store candy cane or ornament, to the winners. This can bring even more fun to the crafting process and encourage everyone to get involved.
9. DIY Christmas Music Playlist

A festive playlist can set the mood and elevate the atmosphere of your Christmas party, and it doesn’t have to be expensive. Instead of purchasing a curated playlist, make your own using free services like Spotify or YouTube, which offer a wide range of holiday music. Search for classic Christmas songs, as well as more contemporary hits, to ensure there’s something for everyone.
You can personalize the playlist by including songs that are meaningful to you or reflect your party’s theme. If you have a specific genre you want to feature, like jazz or rock Christmas songs, look up themed playlists to add to your collection. For an added touch, consider using a Bluetooth speaker from the dollar store to fill the room with music and ensure your guests are enjoying the festive sounds all night long.
To add some variety, you can also create a “DIY carol sing-along” moment. Print out some simple lyrics or hand out mini songbooks with well-known holiday songs for everyone to join in. This interactive element can create a fun, inclusive atmosphere at your party, making it feel even more festive without spending a lot of money.
10. Holiday Cookie Decorating Station

Nothing says Christmas like a delicious array of holiday treats, and a cookie decorating station is a fun, interactive way to involve your guests in the party. Dollar stores offer an assortment of baking supplies such as cookie cutters, frosting tubes, and sprinkles, which are perfect for a DIY decorating activity. Bake a batch of simple sugar cookies ahead of time, and set up a table with frosting, colorful sprinkles, mini candy decorations, and edible glitter.
Guests can decorate their cookies with a variety of toppings, making each one unique and personalized. You can even make this activity a friendly competition by awarding prizes for the most creative cookie designs. This is a great way to get your guests involved in the party and create lasting memories while enjoying a festive treat.
Once everyone has finished decorating, they can take home their creations as party favors. To add an extra touch, you can provide small gift boxes (available at the dollar store) or decorative bags to help guests package up their cookies. Not only will this save you money, but it’ll also provide guests with a fun and sweet memento of the celebration.
11. Christmas Party Bingo

Bingo is a classic and easy-to-play game that adds fun to any gathering, and it’s incredibly simple to set up with supplies from the dollar store. You can either buy pre-made bingo cards or create your own using Christmas-themed images or words. For example, you could create a bingo card with words like “Santa,” “Reindeer,” “Snowman,” and “Gifts,” or even images of popular holiday items like candy canes, stockings, and trees.
Once you have your bingo cards, grab some inexpensive holiday-themed markers or candies like red hots or mini chocolate pieces to use as bingo markers. This simple game can quickly get everyone in the spirit of the season, and it’s a great way to encourage interaction between guests. You can offer small prizes, such as candy, festive candles, or ornaments, to the winners to make the game even more exciting.
If you have enough guests, you can make the game more challenging by organizing multiple rounds, each with different themes or holiday words. You can also consider creating a “Grand Prize” round to cap off the evening with a final big winner. This game is both affordable and engaging, making it a perfect fit for your dollar store Christmas party.
12. Christmas Carol Karaoke

Karaoke is always a hit at parties, and a Christmas carol karaoke session can add plenty of laughs and excitement to your event. Instead of renting expensive equipment, you can use YouTube or free karaoke apps that feature Christmas songs. If you don’t have a microphone, a dollar store toy microphone or a wooden spoon can serve as a fun stand-in.
Set up a designated area for the karaoke performance, complete with festive decorations. Guests can sign up to sing their favorite Christmas carols, whether it’s “Jingle Bells” or “Silent Night.” Don’t be afraid to mix in some humorous, less traditional songs for a bit of variety, such as “Grandma Got Run Over by a Reindeer” or “I Want a Hippopotamus for Christmas.”
If you want to make it more exciting, consider offering prizes for categories like “Most Enthusiastic Performance” or “Best Duet.” This interactive activity is a guaranteed crowd-pleaser that adds an element of spontaneity and fun to your Christmas party—all without exceeding your budget.
13. Christmas Charades Game

Charades is another simple and low-cost game that can be easily tailored to fit a Christmas theme. All you need is a little creativity and some index cards (which can be found at the dollar store). Write down holiday-related phrases, activities, or characters—such as “decorating the tree,” “sleigh ride,” or “Santa coming down the chimney”—on each card. Then, divide your guests into teams and take turns acting out the phrases without speaking.
This game works well because it’s easy to understand, and everyone can participate regardless of age. You can also make it more interesting by incorporating some fun props from the dollar store, such as reindeer antlers, Santa hats, or fake snow. The extra props can help make the game more visual and enjoyable for everyone, ensuring that your guests will be laughing the whole time.
To add a little more competition to the game, consider timing each round to see which team can act out and guess the most phrases in the shortest amount of time. Charades is a simple and cost-effective way to keep your guests entertained while embracing the festive spirit.
14. Christmas Photo Booth

A photo booth is a fantastic addition to any holiday party, and it doesn’t need to cost much. At the dollar store, you can find an array of inexpensive props like Santa hats, reindeer antlers, fake mustaches, and holiday-themed glasses. To create a DIY photo booth, simply hang up a festive backdrop—this could be a Christmas tablecloth, a tinsel garland, or a simple piece of red and green fabric. Set up a camera or use your phone on a tripod for guests to take photos.
To keep the photo booth area fun and engaging, encourage guests to take silly photos with the props. You could even offer instant printouts if you have a photo printer, or create a hashtag for guests to share their photos on social media. This activity will not only give everyone a laugh but will also provide them with memorable keepsakes from the event.
For extra fun, consider setting up a small photo contest where guests can vote for the most creative or funniest photos. The winners can receive small prizes like a festive mug or a candy cane. A photo booth is a great way to enhance the holiday spirit and create lasting memories with minimal investment.
15. DIY Christmas Ornament Making

Ornament making is a timeless tradition during the holiday season, and it’s also an easy activity to organize with dollar store supplies. Grab clear plastic ornaments from the dollar store, as well as a variety of decorations like glitter, small beads, fake snow, paint, ribbon, and stickers. Set up a crafting station where guests can personalize their ornaments, whether by painting them, filling them with glitter, or decorating them with festive stickers and rhinestones.
You can encourage guests to get creative by offering different themes for their ornaments, like “Winter Wonderland” or “Santa’s Workshop.” If you’re hosting a large party, consider turning it into a friendly competition by giving out small prizes for the “Most Creative” or “Most Festive” ornament. This adds an extra layer of fun while keeping the holiday atmosphere lively.
Once the ornaments are finished, guests can either hang them on your tree or take them home as a keepsake from the party. This gives them a tangible reminder of the festive fun they had, and it’s a budget-friendly way to incorporate a classic holiday tradition into your party.
16. Christmas S’mores Station

A DIY s’mores station is an easy and delicious way to bring a cozy, festive touch to your holiday party. Set up a table with all the essentials for making s’mores: graham crackers, marshmallows, and chocolate bars. You can even use flavored chocolate or add holiday-themed treats, like peppermint bark or holiday sprinkles, to make the s’mores extra special.
To elevate the experience, consider using a small outdoor fire pit if you’re hosting an outdoor event, or set up a fondue pot with melted chocolate for indoor s’mores-making. If you’re keeping it indoors, you could also use a microwave to warm the marshmallows and chocolate. This hands-on activity will keep guests engaged while satisfying their sweet tooth.
You can make the s’mores station more interactive by creating a “S’mores Challenge,” where guests compete to create the most delicious or creative s’mores combination. The winner can receive a small prize, like a hot chocolate mix or a holiday-themed kitchen gadget. Whether indoors or outdoors, this activity adds a tasty and fun element to your party without blowing your budget.
17. Christmas Movie Marathon

A Christmas movie marathon is a perfect way to keep the holiday cheer flowing throughout the night. Choose a selection of beloved holiday films, such as “Home Alone,” “Elf,” “The Grinch,” or “A Christmas Carol.” You can create a cozy movie-watching area by using blankets and pillows from around the house or picking up some inexpensive items from the dollar store.
Offer popcorn, hot chocolate, and seasonal snacks like gingerbread cookies or candy canes to enhance the movie-watching experience. For extra comfort, create a hot chocolate bar with toppings like whipped cream, marshmallows, and peppermint sticks. This simple yet festive activity is an easy way to fill the evening with holiday classics and fun moments.
To make the movie marathon even more interactive, consider organizing a trivia game based on the films you’re watching. Give small prizes for correct answers, such as holiday-themed candles or mini snacks. This addition will keep guests engaged while they enjoy the movies and create a lively, spirited atmosphere.
18. Christmas Gift Exchange

Gift exchanges are a staple of the holiday season, and hosting one at your Christmas party is a fun and cost-effective way to spread joy. You can keep it simple by setting a low price limit for the gifts, such as $1 or $5, and encourage guests to buy something small yet thoughtful. Dollar stores are perfect for this because they offer a wide range of affordable and fun gift options, from cute mugs to holiday-themed candles or even small toys and games.
Consider making it more interactive by organizing a “White Elephant” gift exchange, where guests can swap and steal gifts from each other. This can add a layer of excitement and humor to the event, as everyone tries to get the best gift. Alternatively, a “Secret Santa” style gift exchange can be just as enjoyable, especially if guests are paired ahead of time to ensure the surprise element.
To make the gift exchange more festive, encourage guests to wrap their gifts in creative and fun ways, using wrapping paper or gift bags from the dollar store. The thought and effort put into the gift exchange will make your party feel special, and everyone will leave with something memorable and meaningful.
19. DIY Holiday Garland Making

Garland is a simple and stylish way to decorate for the holidays, and it’s easy to make using inexpensive materials from the dollar store. Pick up festive ribbon, artificial greenery, small ornaments, and tinsel to create a DIY garland station. Provide your guests with all the materials needed to make their own garlands, which they can then hang up in your party space or take home to decorate their own homes.
To make the garlands extra special, offer a variety of options for decoration, such as glittery pinecones, colorful beads, or small gift tags. If you’re hosting a larger party, you can encourage people to work in groups, creating a collaborative garland for the event. This not only creates a beautiful decoration for your party but also gives your guests a sense of involvement and accomplishment.
Garland-making can be a fun, creative activity for everyone involved, from kids to adults. Plus, the garlands created at your party can become lasting reminders of the time spent together. Once the garlands are finished, hang them up around your party space to add a festive touch to your home.
20. Holiday Scavenger Hunt

A holiday-themed scavenger hunt is a great way to get everyone moving and having fun. Create a list of holiday-themed items, such as a red ornament, a candy cane, a snowflake, or even a Santa hat, and hide them around the party area. Provide guests with the list, and encourage them to find as many items as they can within a set time limit. You can also make it more challenging by providing clues or riddles that lead to each item.
To add an extra layer of competition, offer small prizes for the first few guests who find all the items. If you have a large group, divide them into teams to make the hunt more interactive. This activity is perfect for breaking the ice and encouraging everyone to engage with one another in a fun and festive way.
A holiday scavenger hunt is an affordable and exciting way to entertain your guests while keeping the Christmas spirit alive. With minimal cost and maximum fun, it’s the perfect addition to your dollar store Christmas party.
Conclusion
Hosting a memorable and festive Christmas party doesn’t have to break the bank. With these 20 budget-friendly dollar store Christmas party ideas, you can create a fun and festive atmosphere that your guests will love without spending a fortune. Whether it’s a DIY ornament-making station, a Christmas photo booth, or a holiday scavenger hunt, these activities are perfect for bringing everyone together and celebrating the season.
You can use inexpensive supplies from the dollar store to create a cozy, joyful environment that encourages creativity and connection. Not only will your guests enjoy the activities, but they’ll also appreciate the thoughtful touches you’ve put into making the event special. So, gather your supplies, get crafty, and make this holiday season one to remember, all while keeping your budget intact. Happy holidays!