12 Ways to Save at Christmas + Free Christmas Budget Planner

Christmas can be a time of spending. But you can have a wonderful Christmas on a budget. Here are 12 tips + a free Christmas budget planner.

The presents are all unwrapped, the Christmas ham is eaten, and you’ve scoured the sales bins for that had-to-have bargain.

Then the credit card statement comes.

And the post-Christmas debt pain begins.

According to 2024 research by Finder, 38% of Australians – about 7.7 million people -acquired Christmas debt in 2023. 15% of those Aussies will take between 1 and 5 months to pay off that debt and 3% say they will take 12 months or more to pay that debt off.

That’s a lot of catch up for one holiday.

Speaking from experience, it can be frustrating waking up in April, May, or June and be still trying to catch up from last year.

Ideally, it’s a good idea to start saving for Christmas in January, so you can save up little-by-little each week and avoid or reduce the Christmas stress.

But if you’re reading this in November or December and haven’t started a savings fund, don’t despair! There are other options to help avoid or reduce the Christmas debt hangover.

12 Ways to Save at Christmas

Below are some ideas for saving at Christmas, so you can have a wonderful Christmas without going into debt.

1. Create a Christmas Plan and Budget

One of the best ways to save at Christmas by planning early.

Early planning gives you time to shop around and find the best bargains, shop online, search for nice second-hand gifts, or make your own gifts.

We all groan when we see Christmas decorations come out in August (I worked in the Myer Christmas department, so I get it!), but it’s a good prompt to start planning ahead.

At the end of this post is a free Christmas budget planner to help you do this step, but here’s how I create a Christmas plan.

First, check out the article How to Give Thoughtful Gifts People Will Love, and then write a list of recipients and gift ideas for each.

Write down a set amount you want to spend on each person and add up the total (there’s a whole printable page or excel tab to do this automatically in the planner below).

Once you have the gift planned, add other items to the budget like gift wrap, Christmas food, and decorations. Travelling to see family this Christmas? It helps to add travel costs to your Christmas budget.

Once you have a total spending amount for your Christmas budget, think about whether it’s affordable. You may need to massage your list, look for bargains, or get creative (see tips below) to stay within your budget.

One great way to budget for gifts is to ask your recipients what they want. You may be surprised. My brother has asked for socks and jocks three years running. He’d rather save on necessities by getting them as gifts, so he can spend his own money on stuff he really wants.

2. Rationalise your Gift-Giving – Does Your Child’s Teacher Really Need Another Mug?

I know this sounds harsh, but once you’ve written a list of recipients, start crossing people off.

Do you really need to buy a gift for Joe in accounts?

Can you write a heartfelt thank you letter to your child’s teacher instead of buying them more stuff they don’t need or want?

This is what I have always done, and it’s always well received. Also, I volunteer in my kids school, so I hear first-hand how many teachers, while grateful for the gifts, don’t really need them.

Gift-giving should be meaningful, not done because it’s expected.

Giving rubbishy gifts to people who don’t really want it and just end up throwing it out anyway doesn’t serve anyone. Give with meaning, not because you feel you have to.

3. Buy Budget-Friendly Christmas Gifts in Bulk

But what if you feel like you do need to give gifts to acquaintances, work colleagues, employees, or teachers.

Consider buying useful items in bulk to save time and money – gifts like food gifts that aren’t just junk for landfill. If you have time, handmade gifts will save money, but be aware that some people won’t eat homemade foods.

4. Make your Own Gifts to Save

Making your own gifts can be a great way to save money.

Spending a day baking can result in bulk gifts for teachers and work colleagues.

Or maybe you have hobbies like sewing, knitting, or woodworking that easily lend themselves to handmade gifts.

Even if you don’t there are many easy gifts that can be made by anyone, like DIY bath salts or spice rubs. Combine some handmade gifts with vintage finds in a homemade hamper, and you can give a really nice gift for very little.

5. Give the Gift of Time, Not Stuff

For the person who has everything, the gift of your time or your skills could be well received.

So that the recipient receives something on the day, you could give personalised gift certificates for the time or service that you’re offering.

6. Temporarily Cut Back on Other Expenses

Every coffee, work lunch and takeaway that you don’t buy will give you some extra cash for Christmas, but only if you reallocate that spending to your Christmas budget.

One idea is to have a no-spend week or month in October, November, or December and cut your spending back to the bone so you can save up and pay for Christmas with cash.

Further reading: 10 Ways to Save Money Right Now and 6 Ways to Find Quick Cash.

7. Look for Bargains

It seems that stores are permanently on sale these days. Even before Christmas, there are plenty of sales and bargains to be had. And with online stores, there’s no need to pay full retail price ever again.

Signing up to store emails can be advantageous at this time of the year, so you can be notified of specials. Unsubscribe after Christmas to avoid the temptation to buy the stuff you don’t need. 

These store emails can also help you find last-minute bargains, although coming from someone who worked in retail at Christmas, last-minute shopping is often a recipe for family stress and arguments – just another reason to plan early.

8. Kris Kringle Christmas

Many families opt to buy presents for kids only because as adults, we’re usually less caught up in the whole gift thing.

If this isn’t an option, you could suggest a Kris Kringle or Secret Santa, where names are drawn out of a hat, and you buy a gift for just that person.

This way you only have to buy one gift, yet nobody misses out.

9. Share the Cost of Christmas Entertaining

If you’re having a big family gathering, then getting everyone to bring a dish, drinks or nibbles will help spread the costs so the burden doesn’t rest entirely on your shoulders.

This is especially easy if you spend a typically Australian Christmas having a BBQ or picnic on the beach but even parts of a traditional Christmas roast can be shared amongst the family.

10. Be Choosy about Christmas Parties

Christmas costs aren’t limited to gift buying and decorations. All the social events around this time of year can add up as well. 

If you have a full social calendar around the holidays, you might consider going to those Christmas parties you really want to and politely opting out of the others.

Attending social gatherings, at least here in Australia, usually means taking a ‘plate’ (food to share) or at least drinks. Again, planning ahead here can really save you money.

From about September, I look for half-price specials on things like crackers, olives, and drinks and other non-perishables to put away for Christmas time, and closer to the date, I stock up for perishables like dips and cheese when on sale to save money.

Another option, if you take a bottle to of wine to social gatherings, is to look for a discounted dozen or case so you’re not paying retail price and have a handy stash to take to events.

11. Don’t Buy For Yourself

Do you find with all that present shopping that you get just a little bit tempted to throw in a few gifts to self?

I know I do.

Instead of doing a little retail therapy in the silly season, write those ideas down on a wish list. If you find you really want that special thing after a couple of days, tell those who are buying for you.

That way, you get what you really want at Christmas, you take the pressure off loved-ones to think of the perfect gift, and you save money, helping you to avoid Christmas debt.

12. Emphasise the True Meaning of Christmas

It can be hard balancing expectations with your values (and your budget) at Christmas time – the tension between generosity and frugality and an underlying suspicion that we’re all just buying ‘stuff’ out of obligation.  

At the end of the day, Christmas isn’t about how much we spend, but about the memories we create.

By shifting the focus onto meaningful experiences, we can enjoy a holiday season that’s both fulfilling and financially stress-free.

Consider starting a new tradition that centres around spending quality time together rather than exchanging gifts.

Our kids always ask to spend quality time together as a family. Sure, they like getting gifts, but when we ask what they want for Christmas, they always ask to go to the park together, have a picnic on the beach, or play some board games. 

Investing in memories, not stuff, gives people the best Christmas of all.

Free Christmas Budget Planner

To help plan for Christmas, I’ve included a free Christmas budget planner in two different formats: an excel spreadsheet and printable PDFs to fill out.

The spreadsheet includes two sheets, a gift giving budget, and a total Christmas budget.

The gift budget is automatically linked to the overall budget, so as you add each recipient and the amount you want to spend, it updates the total Christmas budget.

All totals calculate automatically.

And if you prefer good old pen and paper, I’ve included a PDF version to print.

Download the planners by clicking the links below:

• Download the excel Christmas budget planner
• Download the PDF Christmas budget planner (with suggested items)
• Download the PDF Christmas budget planner (blank)
• Download the PDF gift budget planner

What’s your favourite tip for saving money during the holidays? Share it in the comments below.

Don’t forget to download our free Christmas Budget Planner to stay on track this year. For more practical tips on living frugally all year long, subscribe to our newsletter and get the latest articles delivered straight to your inbox!