Christmas is coming! Yes, we wrote this in February. Blink and it will be here. 

For many of us it’s a time to build happy memories. Opening presents, overeating good food and binging on terrible telly are all part of the fun. But Christmas can also be very expensive if you’re not prepared. What if you can’t afford to spend much this year?

If money’s tight, don’t let that stop you enjoying yourself. We’ve got ways to help you budget for Christmas so it can still be a joyful time of year. But you’ll need to start right now!

1. Start by creating a budget

Having to work out what you’ve got to spend can seem like a chore, but it’s worth doing. You’ll be glad you did when Christmas is over and you’re not drowning in Christmas related debt.

The way to create a budget is by adding up everything you have coming in and going out. You should make sure your essential costs are covered first. Once your bills are covered you can use what’s left to spend on gifts.

If you want more money to spend, find ways of making it. You could:

• Consider a part time job: Shops and bars are always looking for extra staff over summer (especially at festivals and other summer events).
• Sell stuff you don’t use: We all have clutter we could sell that would be useful for someone else. Have a clear out to make yourself some extra cash to spend at Christmas.
• Consider a side gig: Slightly different to a part time job, there are a lot of ways to work from home and earn a little extra cash.

2. Set a limit on how much you’re going to spend on each person

So, you’ve worked out your budget and you know how much cash you’ve got to spend. But who are you spending it on? By writing a list of everyone you want to give a gift to, you can divide up your money between them.

Once you’ve decided how much you’re going to spend on each person, stick to it. If you see something that costs too much, look for something else. Our tips will help.

3. Shop for Christmas gifts when they’re on sale

Shops want your money, and they’ll use all sorts of tactics to try and get you to buy from them. Offering discounts is one way they do this. But this can be used to your advantage. As long as you only buy something you’d have bought anyway! Doing this can make sure your money goes further.

If there’s an item you want to buy, sign up to the marketing emails for the shop that sells it. That way you’ll know when they’ve got offers on so you could buy it for less.

4. Make your own Christmas decorations

Decorating your home to make it feel Christmassy is normal for this time of year. But spending on decorations isn’t the best use of your money when you’re on a budget. There are some great ideas around for making your own decorations, and they don’t have to look cheap.

• Try filling old jars with lights and place them along your hallway to brighten it up.
• Find some twigs and tie them together in a star shape. You can paint it, add some greenery from outside or tie ribbon round it. Then hang it up somewhere with some string for a rustic feel.
• Use up odd bits of wool to create knitted baubles. They add colour to any tree.

5. Have a potluck dinner

‘Potluck dinners’ are a fun way of enjoying good food with friends without breaking the bank. The way they work is that someone has everyone over to their house, but each visitor brings a dish of food. It can be bought or homemade, but it’s a cheaper way of enjoying a meal together.

The only thing you need to check is what dish each person is bringing. This is just so that you don’t end up with a table full of puddings!

6. Use gift cards and coupons to save money on presents and food

Have you got some money left over on gift cards or have you got coupons you haven’t used? If these haven’t expired, why not use them to put towards some gifts.

Lots of shops give you rewards when you shop with them that you can trade for other things. For example, Tesco has a loyalty card called Clubcard. If you scan your Clubcard every time you spend money in Tesco, you earn points. These points turn into pounds that you can spend in store, or you can use them with their reward partners.

Tesco isn’t the only store where you can get loyalty points, lots of stores have them.

Store with rewards	What you get	What you can do with the rewards
Tesco Clubcard	You earn points for every pound you spend.	Your points are turned into pounds that you can spend in store or online. You also get special discounts on items. The points can also be turned into vouchers to spend with Tesco partners which include Pizza Express and Disney+. When you convert the points into vouchers, they’re usually worth three times as much.
Sainsburys Nectar card	You get Nectar points on every pound you spend	You can spend your Nectar points in Sainsburys stores or online, or you can use them to get discounts at Argos or on eBay.
Morrisons Card	You get special discounts on items they sell	Morrisons offer discounts that you can only get if you have a Morrisons card.
Boots Advantage card	You earn points on every pound you spend	The points you earn convert to pounds which you can use to pay for items in store or online.
Marks and Spencer Sparks card	You get special discounts	With the M&S Sparks card you have access to special discounts and sometimes get free items.

7. Buy gifts just for the kids

You don’t have to be a kid to enjoy Christmas. But being a grown up means you don’t need to have presents to enjoy it either. It saves time and money if you only have to buy for the kids instead of the whole family. Enjoy sharing their excitement. After all, seeing the joy in their faces is a gift in itself.

8. Do a ‘Secret Santa’ gift exchange instead of buying for everyone

You’ve probably heard of Secret Santa, but have you ever given it a go? It’s a great way to make sure everyone gets a present without it costing a fortune. In case you don’t know, this is how it works.

1. Invite together a group of people who all know each other – friends or family. Agree that you’ll all take part in the Secret Santa.
2. Decide on an amount you’re going to spend on each other – say £20.
3. Put all the names of the people in the group into a hat. Each of you takes a name out of the hat and that’s who you’re going to buy a gift for. But don’t let anyone see who’s name you’ve got – that’s the secret in the Secret Santa!
4. Everyone buys their gift without spending more than the agreed amount. Don’t let on who bought the gift, just put the name of who it’s for on it.
5. You all meet up, pile up the gifts and then someone gives them out.

Secret Santa is a fun way of giving gifts while saving money and time. And it’ll leave you guessing who bought your gift!

9. Give practical gifts that people will use instead of unnecessary stuff

We’ve all had gifts we don’t need or really want but some people are hard to buy for. If you’re stuck with what to buy for someone, get something useful. Giving something that’s taken some thought is better than socks or smellies. Try one of these ideas.

• Give them the gift of your time. People are so busy these days, by offering to help in some way that frees them up can be the best gift. For example, you could offer to take their dog for a walk or babysit for them. Type your gift and print it out so it’s like a voucher they can use in the future.
• Put your cooking skills to the test and make something tasty. This not only makes a nice gift, but you can make it personal too. This is extra special if you’ve made something that takes account of any food allergies they might have.
• Get a needle and thread and sew a message on a T-shirt or handkerchief. All you have to do is lightly draw on your message, then stitch over it. It turns a practical gift into a personal one.

10. Buy in bulk to save money

If you get the chance to buy in bulk, have a look at how much you’re saving on each item. Usually, buying in bulk saves you money.

The other way of buying in bulk is to get a gift set that’s on offer. By separating the items in the gift set you can make a few presents out of it. Add a box of chocolates to go with each item and you’ve got some nice gifts.

11. Cut back on your own Christmas spending to save money

It’s so easy to spend, spend, spend at this time of year. The shops make everything look extra special and you can feel the excitement in the air (or is it stress!). But with all this build up to Christmas it’s not surprising we get tempted to spend more.

The key is to remember that you can enjoy the Christmas season without it breaking the bank. Simple things can give you that Christmas feeling.

12. Enjoy the holiday season!

You can still enjoy Christmas without having to spend loads.

• Bake some cookies in the shape of Christmas trees, stars or snowmen and decorate them
• Go for a walk round the shops and enjoy all the Christmas decorations. But window shop only – don’t go in!
• Do something with all those odd socks. Stuff them and turn them into toys. Or make a game out of them. You could put some random items inside the socks, and everyone has a turn of finding one of the items by feeling inside. The winner is the one who finds the items in the fastest time.
• Make a treasure hunt for the kids by hiding small chocolates around the home or garden
• Watch Christmas movies or play boardgames with friends or family

How can I reduce my Christmas budget?

The best way you can reduce your Christmas budget is by starting early. By spreading the cost throughout the year it’ll mean you’ll have less money to find at Christmas. It may be too late for this year, but you can set it up for next year. Here’s what you can do.

• We tend to buy presents for the same people every year. Seeing as you know who’s on your list, don’t wait until the run up to Christmas to buy them something. If you spot something at a bargain price in January that would make a great present, buy it. Store it away with your Christmas decorations ready to give next year.
• A homemade photo album can make a great gift. Starting with January, take at least one good photo a month with the person you’re going to make it for. Stick it into your album and build it up through the year. By December you’ll have a year of happy memories and a lovely personal gift for someone. 

What is the 4 gift rule?

With kids having so much these days, it’s no surprise that the 4 gift rule is becoming more popular. The way it works is that parents buy their kids four presents each. But the four presents have to meet the following rules.

1. Something they want
2. Something they need
3. Something they wear
4. Something they read

It’s a good idea for two reasons. First, it teaches kids to choose and value things rather than get a bunch of stuff they only play with for a day. Second you spend less.

How can I save money for Christmas 2023?

Did you spend more than you should have this year? Well, you know that Christmas is going to be back again in twelve months, so that gives you a year to save for it.

• Work out how much you spent on Christmas this year. Use this as a guide of how much money you need to spend on Christmas next year.
• Divide this figure by 11 so that you know how much you need to put away each month between now and November.
• Set up a savings pot and put that money away each month. By November you’ll have the money you need for Christmas.

Final words

Christmas doesn’t have to be a drain on your finances to be enjoyed. There are ways you can get into the spirit of Christmas without it costing you a fortune. Limiting the presents, you give or making your own gifts can help reduce the budget. After all, Christmas is over in a day. And the one thing people want more than anything is to be with friends and family.

Whatever you do, we hope you have a happy Christmas!

Disclaimer: The information and tips given in this article are for reference only. We are not affiliated to any of the external websites linked in this article. These are for information purpose only.