Christmas on a budget: top tips, statistics & alternatives (2024)

It’snearly time to put up the tree and open the sherry– Christmas is creeping closer daybyday. But is thistime of good cheermaking you feel stressed about your bank balance?

Unlike Santa, you don’thaveto get into the red this Christmas. That's why we've put together our top money saving tips and advice for celebrating the festive holidays on a budget.

In the UK, theaveragespend on Christmasin 2022 was £642, down slightly from £670 in 2021, according to YouGov.

According to the Bank of England in 2020, households spend on average £740 more in December compared to other months, which isa 29% increasefrom a usual monthly spend.

So how do you doChristmas 2023 on a budget?You don’tneed a frugal Christmas budgetto enjoythe festive seasonwithout going into your overdraft, but it does help to plan your finances.

Save ahead, make a plan and make sure you have access to the money you need.

Here are some top tipsto help youshop smart and save moneythis Christmas.

Plan ahead before you hit the shops

Don’t go into the crowds without a clear budget in mind.

Know what you can afford to spend, and plan how much of this will go towards food, gifts, drinks, decorations,and other things. You can look for the best dealsin advance.

Agree on price limits for gifts

Thisis one of themost effectivemoney-saving hacks. By agreeing limitswith family and friends, youeliminate the fear that someone has bought you something more expensive and makes budgeting easier.

Be honest

If you’re struggling, chances are that you aren’t the only one. If you can’t afford a lavish Christmas, be honest with those around you about scaling back.

Opening up means that you’ll feel less pressure to buy lavish gifts, and, if you are hosting, others might suggest bringing food or alcohol with them to share the cost.

Watch TV for free

Christmas is the time for good telly, but you don’t need to break the bank. Most streaming platforms offer free one-month trials.

Signup in Decemberandenjoy relaxing at home with a good family film – just don’t forget to cancel before the trial ends.

Save on postage

Deliverycosts can add up. If you are considering using the same platform more than once, look into delivery passes.

Ask for advice

You may think that there is no other way for you and your family to enjoy your Christmas other than getting into debt.

But before you take action, get professional advice on your situation, so you can avoid going into debt unnecessarily.

Loyalty cards

Manystoreloyalty cards can save youmoney in the long run. If you have cards for your favourite stores already, consider using them in December to help with your Christmas spending.

If you don’t have a card, sign up now so you can build up points for future savings.

Budget gift ideas

You don’t need expensive gifts to show your family and friends that you love them.

As well as using our aboveChristmas spending tips, consider the below great gift ideas.

Give an experience

The best things in life are free, or so they say.

New parents may value a voucher for free babysitting above a gift, and friends might be delighted if you plan a (free) day out for you all, or cook a delicious meal to share.

Gift a memory

Photo printing isrelativelycheap, and you can easily buy inexpensive frames for athoughtful,personalgift that won’t break the bank.

Get cooking

The kitchen is a great place to createChristmas presents. Make sweets or bake brownies, wrap themin cellophane and tie them with a ribbon to create a beautiful gift.

Get creative

If baking isn’t for you, there are other gifts you can make.You can make candles, soap,orjewellery, among other things, and supplies are cheaper if you make similar gifts for many people.

How to decorate for Christmas on a budget

Everyone wants a little sparkle atthis time of the year,but how exactly doyou decorate yourhome for Christmas on a budget?

Reuse or swap

Chances are, no one will remember what baubles and tinsel you’ve used for past Christmases, so dig out your old box of decorations.

If you want to refresh your look, why not swap some decorations with a friend? You’ll both refresh your decorations without spending a penny.

Shop smart

Don’trunto the pricey Christmas section in the department store for decorations. It may look beautiful, but you can get a similar effect by using their styling as inspiration and going to the supermarket instead.

Tie it up

Buy a spool of ribbon and tie festive bows to decorate your tree. It will look classy, and only set you back a few pounds.

The great outdoors

Knowinghow to decorate outdoors for Christmas on a budgetcan be tricky, but far from impossible.

Making your own Santa signs, window displays, or evena Christmas wreath isn’t too difficult.You can also tie baubles to your trees, and ribbons to the gate.

The bright lights of January 2024

Whichever way you cut it; Christmas is an expensive time.

Make sure you get back on track straight away in January by getting advice on your recovery plan.

As well as this, try these tips in January.

Save your Christmas bonus

If you are lucky enough to get a Christmas bonus from your employer, don’t automatically add it to your December spending pot.

If you can, try and keep some, or even all, of this back to give you a boost in January.Alternatively, you could use it to make amortgage overpaymentor add it to yourpension.

Try Dry January

Many of those who overindulge during the Christmas period cut out alcohol in January. As well as making you feel more refreshed, it will also help your bank balance recover.

Don’t waste anything

If you haven’t managed to get through all of yourChristmas food, make sure you’re planning ahead byfreezing it straight away for future meals.

If you receive gifts that are going to getshovedinto a drawer, try exchanging them for something you need orsell them online.

Learn more:What are Christmas savings clubs, and can they save you money?