Five money saving hacks for Christmas

The key to doing Christmas on a budget is to be very strategic with your planning. And there are easy steps you can take to save money.

Christmas is often a stressful time – and this year is set to be a cracker.

Already rated by Relationships Australia as one of the six most stressful life events, along with divorce, moving house and changing jobs, the festive season could be especially challenging this year amid a cost of living crisis, says MyBudget founder Tammy Barton.

“The festive season can come with a high cost when you take everything into account,” she says. “It is more important than ever to plan early.”

Christmas lunch doesn’t need to cost an arm and a leg.

MAKE A THREE WEEK PLAN

The key to doing Christmas on a budget, says Canstar editor-at-large and finance author Effie Zahos, is to be very strategic with your planning.

“The first thing I’d be doing is putting in a Christmas advent calendar – a budget calendar,” she says.

She suggests making a three week plan in the countdown to December.

“In week one, you could look to sell unwanted things from around the house,” she says. “Week two, you could look to do a side-hustle.”

In the third week you could look at your budget to determine if you have enough money to cover the cost of planned celebrations.

Canstar editor-at-large and finance author Effie Zahos.

BUDGET WITH YOUR FAMILY

Finder personal finance expert Amy Bradney-George says families and friends shouldn’t shy away from setting spending limits.

Gift swapping strategies such as Kris Kringle, or agreeing to only buy children presents, can also help keep costs down.

Ms Barton says it’s important to manage expectations when it comes to kids.

“Make sure your kids are aware that there is a budget for Christmas, and talk to them about what is affordable within your household,” she says. “This allows you to include them with choices, like ‘We can’t afford a new bike and a scooter this Christmas, but it’s up to you which one you choose’.”

Involve the whole family when planning a cost-effective Christmas. Picture: Tony Gough

When it comes to hosting Christmas lunch, consider breaking with tradition and hosting a more budget-savvy breakfast instead, Ms Zahos says.

Alternatively, ask everyone who is coming to bring a plate of food and some drinks to share.

MAKE A LIST (AND CHECK IT TWICE)

Making a list of all the things you need in the lead up to Christmas can help you target your spending and stay within budget, Ms Barton adds.

“Make a list (and check it twice),” she says.

Ms Bradney-George suggests making the list as detailed as possible to include all of the gifts, as well as food, drinks and other items that will be needed.

Shop in advance and take advantage of sales. Picture: Richard Jupe

“You always have that reference point to come back to so something that might be tempting, you can ask, ‘is that on my list?’,” she says.

TIGHTEN YOUR BELT

Saving on other expenses can help you set aside money in the lead up to Christmas. Ms Barton says suspending streaming services for a few months, cutting back on social outings until December and swapping to a cheaper home insurance could make a difference come Christmas.

Ms Zahos says it’s important not to let your emotions cloud your financial judgement once the festive season kicks in.

“A lot of our spending comes down to emotions,” she says. “A lot of us won’t stop spending at all. Credit cards could get a very big working out.”

Founder and director of MyBudget Tammy Barton. Picture: Sarah Reed

She says there is a risk that people will go overboard if banks bring out special 0 per cent purchase offers or extra bonus points for credit cards during the silly season and become trapped in high-interest rate debt once the deals expire.

Ms Barton suggests an old school approach of buying presents in cash.

“It is much easier to keep track of how much you are spending compared with tap and go,” she says.

GIVE THE GIFT OF LIVING

While regifting or making homemade gifts can help you save money, there are a range of gift options that can help your loved ones save too.

Planning ahead makes all the difference.

“There are some great cost of living purchases that can go a long way,” Ms Zahos says.

Examples include a membership to Woolworths Extra Rewards, where you get money off your shopping for a whole year.

“Something that can give back to people in these tough times would be most welcomed,” she says.

Originally published as Five money saving hacks for Christmas