It’s January. You’ve only just finished putting the tree down. Why on earth are we talking about next Christmas? While Christmas is a joyful time of year for many of us, it can also be incredibly expensive.
For those celebrating it’s a time for giving, spending time with family, and of course, eating lots of delicious food. But all this merriment can come with a big price tag, which can be stressful. The good news is it doesn’t have to be expensive. Whatever your budget, there are ways you can enjoy the festive season without spending a fortune.
1. Start by creating a budget
Yes, creating a budget is a chore. But knowing exactly how much money you’ve got to spend will help.
- You’ll be able to come up with options that mean you spend less. We’ve got some ideas for you below.
- You’ll be able to stop yourself from getting into debt that you spend next year paying off.
- You’ll know how much extra you need if you don’t have enough money. You’ll be able to explore ways of getting that extra cash. Ideas include taking on a part time job just over Christmas or selling stuff you don’t use.
2. Set a limit on how much you’re going to spend on each person
Setting a budget on how much you’re going to spend on each person can help keep generous Gift splurging under control.
- Write a list of everyone you want to buy a gift for.
- Work out how much money you’ve got to spend on each person.
- Decide what gifts you’re going to buy for them. If you’ve got a family to buy for, by one gift for them all instead of individual gifts. For example, a boardgame and a homemade hamper of treats can make a great family Christmas gift.
Whatever budget you set for each person, make sure you stick to it. There are so many inexpensive, yet thoughtful gifts you can give.
3. Shop for Christmas gifts when they’re on sale
There are plenty of discounts and gifts on offer in the lead up to Christmas. Your written list should make it easier as you’ll have a gift and budget in mind.
You could sign up to marketing emails for the retailers which sell the items you’re after. That way you’ll get to hear as soon as they’re offering discounts. And keep searching online for special deals!
4. Make your own Christmas decorations
You might think that making your own Christmas decorations will make them look cheap, but this is not so. You can make some unique looking gifts using everyday items. For example, you can make knitted baubles from left over wool. You can fill old jars with fairy lights or create stars out of twigs that you can paint and hang up with some string.
The internet is full of great ideas. Turn a rainy day into a Christmas decoration making day for all the family.
5. Have a potluck dinner
‘Potluck dinners’ are a great way of enjoying good food with good company without breaking the bank. The way it works is that someone hosts it in their home and everyone who attends brings a dish of cooked food with them.
It’s best to prearrange who’s going to cook what, so you don’t all end up with nothing but dessert!
6. Use gift cards and coupons to save money on presents and food
Have you got money left on gift cards that you could put towards buying presents or food? If money’s tight this could help you out.
Do you collect loyalty points with supermarkets and stores like Boots? You’ll be surprised at how they can help you with your purchases. Tesco vouchers are worth three times their value if you convert them to spend with their partners. You can get chocolate gifts or magazine subscriptions by converting your rewards points. These make great gifts and they cost you nothing.
There are a few well known shops where you can get loyalty points:
| Store with rewards | What you get | What you can do with the rewards |
| Tesco Clubcard | You get points on every pound you spend. | Your points turn into pounds that you can spend in store or online. You also get special discounts on items. You can convert the points into vouchers to spend with Tesco partners which include Pizza Express and Disney+. Converting the points into vouchers usually triples their value. |
| Sainsburys Nectar card | You get Nectar points for every pound you spend | Your nectar points can be spent in Sainsburys stores or online, or you can get discounts at Argos or on Ebay. |
| Morrisons Card | You get special discounts | You get exclusive discounts if you’ve got a Morrisons card. |
| Boots Advantage card | You get points on every pound you spend | Your points convert to pounds which you can use to pay for items in store or online. |
| Marks and Spencer Sparks card | You get special discounts | By having their Sparks card you’ll have access to special discounts and occasional free items. |
7. Buy gifts for the kids only
Lots of adults love Christmas. But it’s even more magical for children. There’s so much joy to be found in seeing their faces light up at Christmas. You want to give them everything but when you’re on a budget, you can’t. This is where it gets much easier if everyone agrees to just give presents to the kids.
The adults understand and don’t need presents to be happy. So, agreeing to buy for just the kids means you don’t have to spend so much, and the little ones don’t miss out.
8. Celebrate Christmas day at home instead of in a hotel
If you want to save a lot of money, then eat at home instead of eating out at a hotel. Yes, the idea of not having to cook and clean up does sound nice. But with the cheapest Christmas day lunches starting at around £50 per person, it’s not a cheap option.
Plus eating at home means you get to enjoy your leftovers in bread rolls or a turkey curry!
Saving money isn’t the only reason why spending Christmas day at home can be nicer. It’s being able to relax in your own home. Filling it up with the warmth, the smells and if you’re spending it with family, the memories this time of year brings.
9. Do a ‘Secret Santa’ gift exchange instead of buying for everyone
No doubt you’ve heard about ‘Secret Santa’, but have you ever tried it? In case you’re not sure how it works, we’ll explain.
- You join in with a group of people who you want to buy presents for. This can be family or friends.
- You all agree an amount that you’re going to spend on each other, say £30.
- All the names of the people in the group are put into a hat.
- Everyone gets to draw out a name from the hat. Whichever name you get, that’s the person you’re going to buy a present for.
Secret Santa is a great idea. It means everyone still gets a present, but it saves money as you’re just buying for one person. It also saves time as you don’t have to go looking for as many gifts, and you don’t have to wrap them all either. Plus, it’s fun to guess who gifted who once the presents have been exchanged!
10. Give practical gifts that people will use instead of unnecessary items
We’ve all seen it – socks or smellies are the go-to presents when you don’t know what to buy someone. So, why not give a more practical gift instead. Maybe something personal. Here are a couple of ideas.
- Give homemade food gifts. These are always a good option as you can make something to suit their diet.
- Get some thread and a needle and sew a personal message on a handkerchief or on a plain T-shirt. If you pencil on the words, then stitch over the lines you’ll create a lovely, personalised gift. And it’s practical too.
- Give them the gift of your time. Make your own gift cards which offer a night babysitting their kids or walking their dog. This sort of practical gift can go a long way for people with busy lives.
11. Buy in bulk to save money
Buying in bulk is a great way to save money. There are plenty of gift sets to be found that are on offer leading up to Christmas too. By buying in bulk or buying gift sets, you can split up the contents into separate gifts for people. You can create two or three new gifts out of one gift set.
If you want to make the gift look bigger, you could spend a couple of pounds on some nice chocolate to go with it. Wrap it all up nicely and you’ll have nice gifts that won’t break the bank.
12. Cut back on your own Christmas spending to save money
It’s very easy to get caught up in the joy of the season and spend on things you wouldn’t normally buy. Nice decorations for the house, food treats and new clothes all add up. While there’s no harm in enjoying this time of year, you don’t have to overspend to make the most of it.
Stick to your usual spending budget so that the only thing you need to buy are presents. Food for Christmas day is only one main meal. If you’re having friends or family round, ask everyone to bring a dish of food that they love to eat at Christmas.
As long as everyone doesn’t bring the same thing this can be a fun way to eat together. And it’ll save you money too.
13. Enjoy the holiday season!
There are ways to enjoy the Christmas season without having to spend loads.
- Make and decorate cookies in the shape of Christmas trees, stars or snowmen
- Hide some small chocolates around the home or garden and give your kids a treasure hunt
- Gather all your odd socks and make stuffed toys out of them. Or play the sock game. Fill long socks with some random items and everyone takes a turn to find one of the items just by feeling inside. The winner is the one who finds the items in the quickest time.
- Make some hot chocolate and snuggle up to watch Christmas movies or play boardgames
- Walk round the shops but don’t go in! Choose your favourite Christmas window instead.
How can I reduce my Christmas budget?
Our 12 tips for Christmas above will help you reduce your Christmas budget. But in case you want more, here are a couple more ways you can reduce your budget at Christmas.
- You know who you have to buy presents for but why wait until just before Christmas to buy them. If you come across a bargain early in the year that would make a great gift for someone – buy it. It’ll be one less present to buy at Christmas.
- Take at least one good photo a month with the person you’re going to buy for. Start with January and get one photo every month through to December that you can use. Put them all into a scrap book or photo album to make a thoughtful gift. By putting them into a scrap book you can decorate it and write comments in it as you go along throughout the year.
What is the 4 gift rule?
You may have heard of this, but the 4 gift rule is becoming more popular. The rule is that parents only buy their kids four presents each. Each of the four presents has to fit into one of the following rules.
- Something they want
- Something they need
- Something they wear
- Something they read
It’s a great idea as it cuts back on spending on things that aren’t necessary. And it teaches kids the value of what they have rather than get loads of gifts that they don’t end up playing with.
How can I save money for Christmas 2023?
The key to this is to budget. Work out exactly how much you spent on presents this year. The chances are you’ll be buying for the same people again next year. This means you know how much you need to save. Divide the amount you spent by 11 so you what you need to put away every month between January and November.
Set up a standing order save this amount on the day your salary goes into your account. By November next year you’ll have saved enough money to by everyone’s presents.
Some banks let you create savings pots so you can put the money into them out of the way. It’s encouraging to see the money grow and you’ll be glad you did when Christmas comes next year.
Final words
Presents don’t have to be expensive to be appreciated. And if your budget is tight, don’t be afraid to let people know that you want to do things differently this year. By just giving to kids or limiting your spending with Secret Santa, you can avoid overspending. Even giving homemade gifts can add a personal touch to your presents.
You can still enjoy Christmas while spending within your budget. There are ways of giving that don’t leave you feeling like people are going without. Remember Christmas is over in a day. And one of the main things people love most over the festive period is having time together.
Disclaimer: The information given above are tips provided for reference. Also, the external links linked above are for reference only and we are not affiliated to any of the external parties linked here.
