Christmas Budget Saving Options

Christmas can be a very expensive time of the year and it is easy for holiday season expenses to mount up and spiral at quite a pace.

We all want to have a good time with family and friends and treat them to new gifts to show them we love them. There also tends to be many more social events, including extra Christmas celebrations, that eat into even more of our budget in the build up to Christmas, leading to financial stress.

Everyone loves to put a personal touch on their Christmas season, whether that is through their Christmas tree, the Christmas shopping, favourite foods, or other family Christmas traditions. There is not a single magic figure or recipe that determines you are going to have a fun Christmas – it can be what you make it. But for most of us, with a budget set, there is always room to try and save a bit or make your money stretch further within your own Christmas budget.

The Christmas money saving tips in this article hopefully provide some useful advice that you can use or pass on to other family members or friends to create future favourite Christmas memories and beautiful traditions without leading to huge credit card bills.

Save money early.

On top of all your usual monthly expenditure, it has been estimated that households spend approximately 25-30% more in the month of December than in an average month. There are a lot of extra costs of Christmas that can make holiday spending a potential dirty word! Our first suggestion is that if you can save for these extra costs by putting a little extra aside into a savings account in advance of the festive season it will make it easier when the bills come in.

Write a list of who you need to buy for and what you intend to buy.

When you go shopping or look online this will help you stay focussed, avoiding impulse buying. It will also help avoid panic buying which is when budgets can really start to go out of the window. If you find yourself in a panic that you can't find anything for someone, take a step back and leave it for a little later in your shopping trip or even for another day.

When coming up with gift ideas for others check any lists they have already made.

One of the big problems at Christmas is waste and unwanted gifts. It is much better to buy someone something you know they really want and will treasure. If all of their items are outside of your budget you can give them a nudge to add some more items or perhaps give them money towards one of the bigger items on their list if it is a more expensive gift.

Create your own Christmas list.

Don't forget about yourself! Much like when looking for ideas for others, making a wish list of your own wants and favourite things helps others plan around the budgets they have and ensures they are buying you something that they know you will like and enjoy. It works both ways!

Make use of Black Friday

Make use of Black Friday – but only for the items you actually need to buy. Don't get carried away. Keep an eye on when deals are scheduled to appear because it starts earlier and earlier each year, and lasts for longer, including Cyber Monday. Searching for Black Friday deals on your own search engine will bring up more localised options depending on where you live, such as these options for the UK or US. You are unlikely to have the best online experience when being bombarded with offers but if you can persevere then it might help with Christmas budget saving.

Keep an eye on the price of your purchases.

Often shops extend the returns period around Christmas. If you have time and you spot an item you have already purchased at a cheaper price, consider returning it and buying it again at the cheaper price.

Gift cards or cash?

If you are planning on giving someone a voucher or gift card, think twice about whether it would be safer to give them some cash or transfer some money to their bank account. In the more challenging retail environment of the last few years, more shops are struggling than ever before and it is not uncommon for well-known retailers to close their business with little notice, thereby making those gift cards worthless. Providing cash it may not seem less fun, but at least the person receiving it is then in control of their money.

Plan early.

Something the cheapest prices for items go hand-in-hand with longer delivery times, especially if they are being shipped from far away. Advance planning will help address this to an extent and possibly give you more options. It also means you are likely to have more time to opt for the cheapest online shipping options or even free shipping options. If you plan early and know what you need to get for multiple people, you might be able to combine orders for Christmas presents and reach thresholds for free delivery.

Be honest with people.

If you can't afford to spend as much extra cash as you might have done last year then have a clear conversation and let them know. I think I can safely say that no-one would want anyone to be stressed about money or getting into Christmas debt for the sake of a present.

Secret Santa.

Sometimes it can feel like you are buying everyone around you gifts for the sake of it. Secret Santa can be a great way for everyone to still be involved in the fun of Christmas gift giving whilst it will invariably save you both time and money if you are only buying for one person in a group of friends or family instead of everyone.

Festive jumpers from charity shops.

Christmas jumpers have become almost a norm now compared to when I was growing up – not that I am complaining! However, they tend to get very little wear, especially for children who will likely change size from one Christmas to the next. It is becoming a more expensive tradition for some, alongside other newer trends such as matching Christmas pyjamas. Look in charity shops for second-hand jumpers – they often tend to be in very good condition due to the limited wear - and consider passing any that no longer fit people in your household onto others.

Share food purchases with those you are spending Christmas with.

If you happen to be hosting Christmas or are travelling to spend it with others, share the task of providing all the food and drink. Share some of it out and ask visitors to bring something to go alongside the food you will be preparing – but make sure you let them know that doesn't give them a free pass to meddle in your kitchen!

Make sure you have enough saved for any normal bills.

Christmas is a lovely time to spend with family but make sure you don't put yourself in a difficult situation once the fun is over and the New Year beckons.

Update decorations in January.

When you take your decorations down after Christmas, make a note of anything that might be broken or need replacing. There will be many sales in January and it is a great time to stock up for next year at prices that are much lower than normal. I remember once stumbling across some Christmas lights that we didn't really need but were too cheap to pass by – they have now been casting a magical glow over our house for a number of years and have outlasted other sets. If you want to be really organised for next year you can also get great deals on wrapping paper and Christmas cards straight after Christmas which could be stored away until they are needed next year.

Streaming offers for festive films.

If you want to stream some festive films then look out for any good trial offers (which tend to last for one month) and will get you through a lot of Christmas content.

Great gifts don't have to have a price tag.

New parents may value a voucher for free babysitting above a gift, and friends might be delighted if you plan a (free) day out for you all, or cook a delicious meal to share. Grandchildren may love just spending time with you doing an activity, and it gives them something to look forward to later in the year.

Show your creative side.

Linked to the above point, you might consider making a handmade gift or baking a gift for someone. This can be a very personal gift and you can tailor it to your strengths and their likes, be it knitting a hat or making some foodie treats for example.

We hope these tips have given you some helpful advice on budgeting at Christmas.

How much is your budget for Christmas gifts?

It's recommended to set a budget for Christmas gifts based on what you can comfortably afford. Consider allocating a reasonable amount per person or overall budget to avoid overspending and financial stress post-holidays. It's all about thoughtful giving within your means.

What are the best Christmas money-saving tips?

To save money this Christmas, consider setting a budget, making a list before shopping, looking for deals and discounts, opting for DIY gifts or decorations, participating in gift exchanges instead of buying for everyone, and planning ahead to take advantage of early sales and avoid last-minute rush expenses.