All present and accounted for: How to cut the cost of Christmas gifts

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Can you hear it? The faint jingling of bells? Mariah Carey doing her vocal warm-ups? Keyboards clacking as weary hosts Google “how to cook perfect turkey”?

That’s right, though we wave it farewell each year, Christmas just keeps coming back, promising joy, good food, bad carols, and, of course, presents.

Christmas gifting doesn’t have to put a strain on your wallet.Credit: Michael Howard

At risk of being labelled a Scrooge or a Grinch or some other variety of Christmas-hating grouser, I want to make it clear now that I’m a big fan of Christmas. Lights, trees, Santa, all good stuff.

What’s the problem?

But, famously, Christmas is expensive. We’re expected to spend some $70 billion across the holiday season, including nearly $12 billion on gifts. While this is great news for retailers, it’s less great for our wallets.

Though inflation is easing, and interest rate rises appear to have stopped, the cost of living has remained generally high. Research from job site Indeed shows 57 per cent of workers are taking on extra work this holiday season to help pay for Christmas.

Seventy-five per cent of all workers say they’re more financially stressed this year, and many are wanting to cut back on their spending these holidays.

What you can do about it

But while it’s the most wonderful time of the year, it doesn’t have to be the most expensive. Here are some ways to cut your gifting costs this Christmas:

• Shop the deals: There’s a good reason I’ve picked mid-November to write this, as the fabled Black Friday sales are just about to kick off (though honestly, most retailers have already started offering deals by now). An American import, these sales have become massively popular in the past five years and are a great way to save a significant amount on gifts, as you’d be pretty hard-pressed to find somewhere that doesn’t offer sales. Officially, November 29 is the actual “Black Friday” if you want to wait to get the absolute best deals. For those looking to save on tech goods, Monday, December 2, is “Cyber Monday” – though it’s all much of a muchness these days.

• Build a budget: Another good case for getting in early on your Christmas shopping is so you can take the time to make a budget, which financial advisor Helen Baker says is key to ensure you don’t blow out your holiday spending. “Budget for everything, not just gifts. This includes food, decorations, wrapping, meals out, cards and stamps … it all adds up,” she says. Baker advises allocating an amount to spend for each person and adding it up. Too high? “Work backwards to find a more suitable amount,” she says, “and be reasonable about who you really need to spend money on.”

• Join forces: If you’ve got a sibling or two, it’s likely you’ve done this a few times in your life, but there’s no better way to save money than by pooling your resources, Baker says. “Instead of buying gifts for every single person in the family (plus the office, golf club, mum’s group etc), you – and they – will save serious money by joining forces and setting some ground rules.” You can either do the traditional route of splitting the cost of one expensive item, or you can all coordinate on an idea together – for example, you each buy different pieces of gear for the aspiring cyclist in your family, or numerous books in a series your recipient has been wanting to read. This can save money, stress and time, and should be an all-around slam-dunk. (P.S. A nice book is always a good Christmas gift, and can usually be purchased for as little as $20).

• Shop around, but not for gifts: Finally, if you take the time now (and I mean now, not, like, whenever you get around to it) to do a big review of all your regular expenses, you could find yourself with an extra bit of cash when you head to the shops next month. Check you’re getting the best price on your internet, electricity, gas, car and health insurance, and if you’re not, either call and ask for a better deal, or jump ship to a cheaper provider. Even shaving just 10 per cent from your costs can make a difference not just at Christmas, but in the new year too.

Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.