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5 Tips for Christmas on a Budget

Dec 9, 2020 | Insights

This year, have a Merry Christmas on a budget by setting yourself limits, getting creative in your gift choices and planning ahead

Christmas is a wonderful time to take a break and celebrate with family and friends, but there is no denying it is an expensive way to end the year.

In 2020, many of us have tighter purse strings than ever but this doesn’t mean that Christmas should be cancelled. There are plenty of ways to make the occasion more affordable and stick to a budget this holiday season.

Here are 5 top tips to have a great Christmas on a budget:

1. Set spending limits

If you have a big family and heaps of people to buy for, set a limit for each person.

Put out the word that there is no need to spend big on everyone this year. Let your family and friends know you only intend to spend up to a certain amount and that you would love for everyone else to stick to the same rules. Others may choose to spend more but that is up to them, don’t let it affect you.


2. Share the load

This is key if you are hosting a Christmas party yourself. Don’t take on all of the responsibility for catering and decorating.

Allocate foods to bring and jobs to do for other family members. It is great if you can afford to splurge on your extended family, but there is no reason you should be expected to. Let everyone chip in and your expenses will drop.


3. Recycle

Just because it’s Christmas doesn’t mean everything has to be brand new. Make sure you reuse and recycle as much of your old Christmas stuff as possible. Odds are you have all the decorations you could ever need already.

It may sound a bit sneaky, but this can also be a great way to give gifts. If you have bits and pieces that are worth passing on and are still in good condition, regifting is a good chance to allow them to give someone else joy.

A trip to your local Salvos or second-hand store can also unveil some treasures for Christmas on a budget. As the saying goes, “it’s the thought that counts”, so a more personal second-hand item can be more meaningful than something brand new and generic.


4. Find a cheaper holiday

Christmas is also the holiday season and is the time when we are expected to travel. This year, look for cheaper alternatives to hotels or resorts. Camping is always a fun and cheap way to spend time away from home. If you don’t want to camp, look for budget accommodation or do some research to arrange a house swap, which can cost very little.

Better still, why not plan a staycation? This is a better year than ever before to consider staying home during your time off. Plan a few fun activities and spend some of your holiday budget treating yourself to local experiences.


5. Plan

The best way to pull off Christmas on a budget is careful planning. Plan exactly how much money you wish to spend from the start, then enjoy the hunt for the best value gifts you can find. Look for the best online deals, ways to use bonus points on credit cards or other offers that come your way. Have everything sorted in advance and keep track of everything you spend. This way, your Christmas spending won’t balloon like it so often can, keeping you financially ahead and on track for next year.


Have Fun!

Whatever you plan to do and however you plan to save this Christmas, just remember the most important thing; enjoy yourself! Christmas is about family and love and if you can spend it with those you love then you are already a winner.


Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your particular circumstances.  We do not accept responsibility for any loss arising from the use of, or reliance on, the information.

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Makala Elliott

Makala is the Marketing Manager at Finance One. She has worked in the Finance and Lending industry for over 10 years, gathering a wealth of experience. She is passionate about helping Australians get back on track with their finances by passing on her knowledge.

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