It may seem like a while away yet, but before you know it you’ll be hearing carols in the shops and scrambling to finish your shopping. The festive season has a way of sneaking up, and if you’re not prepared, the costs can hit harder than a Boxing Day heatwave. The good news? A little planning now can help you enjoy Christmas without spending the following months paying for it. Here’s how to make it happen:
1. Start planning early
The earlier you start preparing, the easier it is to spread out expenses. Make a list of everything you’ll likely spend money on such as gifts, groceries, travel and end-of-year events.
Once you’ve got a ballpark figure, break it down into manageable weekly savings goals. For example, if you expect to spend $1,000 over Christmas and you have 12 weeks to go, aim to put aside around $85 each week.
2. Set a Christmas budget (and stick to it)
One of the biggest reasons people overspend is because they haven’t set a clear limit. Work out what you can realistically afford without dipping into savings.
Once you know your total budget, allocate amounts to each of the categories listed above so you know you’re covered for everything you will be needing to spend money on over Christmas.
3. Embrace Secret Santa and gift limits
If your extended family or friends tend to go all out on presents, suggest a Secret Santa or a spending cap. Not only does this save money, but it also take the pressure off of gift giving and you can focus on choosing something meaningful for just one person.
4. Get creative with gifts
Expensive doesn’t always mean better and some of the most appreciated gifts are personal, thoughtful, or homemade. Consider gift ideas such as:
- Baking: Christmas biscuits, fudge, or rum balls in a nice jar.
- Themed DIY hampers: such as coffee, pamper night, movie snacks.
- Experiences: Plan an activity to do together.
- Photo gifts: framed photos, calendars, or personalised ornaments.
- Pottery: Make a one-of-a-kind piece such as a serving plate, utensil holder or trinket dish.
- Thrift: Source treasures from local op shops which are full of unique finds. You could even suggest a ‘second-hand Christmas’ where everyone purchases gifts from an op shop which saves money, supports charity and guarantees one-of-a-kind presents.
5. Shop smart and early
Avoid the last-minute December rush where prices are high and choices are limited. Start keeping an eye out for sales earlier in the year, particularly mid-season sales, EOFY and Black Friday.
Other smart tips for shopping early:
- Use cashback and rewards programs where possible.
- Compare prices online before buying.
- Buy in bulk for things like wrapping paper or non-perishable food.
- Spread out purchases so you’re not hit with everything at once.
6. Cut back on extras that don’t matter
It’s easy to overspend on things that don’t actually add much to your celebrations. Do you really need three new sets of decorations, or will last year’s still do the job? Could you host a bring-a-plate lunch instead of covering the entire meal yourself?
Think about what really matters to you and your family. For most people, it’s spending time together, not how much money was spent.
7. Plan for travel costs
If Christmas involves travel, factor these costs in early. Booking flights and accommodation well in advance usually means better deals, while driving gives you more flexibility around costs.
If travel will stretch your budget, consider alternative arrangements, like celebrating slightly before or after Christmas when demand isn’t as high.
8. Focus on what matters most
When you think back to your best Christmas memories, chances are it’s not the price tag you remember - it’s the laughter, traditions, and time with loved ones. Create meaningful moments that don’t cost much, like a family games night, watching Christmas movies together, or a neighbourhood walk to see the lights.
Shifting the focus away from money and onto connection can help keep spending under control.
9. Start a Christmas fund for next year
Finally, one of the best ways to have a debt-free Christmas is to prepare for the next one. Once this season is done, consider setting up a dedicated Christmas savings account. By putting away even $20 a week from January onwards, you’ll have over $1,000 saved by December, making the festive season much less stressful.
This information provides general advice only. We do not provide advice based on any consideration of your personal objectives, needs or circumstances.
