From presents and decorations to parties and food, costs can quickly add up if you aren't careful.
To help, we've rounded up 11 money-saving tips from Which? experts to help you cut festive costs – both this year and for years to come – plus ways to give your finances a welcome boost ahead of the celebrations.
Boosting your budget before Christmas
December tends to be a pretty expensive month, but with two months to go before the big day, you still have time to set aside some cash for Christmas.
The best way to do this is to look at your day-to-day spending and make small adjustments where you can. This includes cutting down on takeaway coffees, lunches out and food deliveries.
Reviewing your recurring bills could also boost your bank balance. For example, if you have a monthly subscription you don't use, cancel it and put that money into your Christmas pot.
Another tactic is introducing 'no-spend' days each week. Avoiding just £5 of incidental spending twice a week over eight weeks could save you £80.
Find out more:11 ways to save money at Christmas
Saving money in one area boosts your overall budget, freeing up cash for other festive expenses. Here are a few tips from our Which? experts on how to do this, both for this year and beyond:
1. 'Plan gifts throughout the year'
Buying Christmas gifts early might seem eager, but a big discount is always worth it. Spreading the cost over several months keeps your December expenses manageable and stops bills from piling up all at once. Just track what you've bought and store the presents safely so you don't forget them.
Find out more:2. 'Opt for budget crackers'
Christmas crackers are a quintessentially British staple, and the table simply wouldn't feel complete without them at dinner. However. some luxury crackers could cost more than £50.
Since most people really just want the paper hat and the joke, it may be worth opting for a cheaper set, enjoying the harmless tat and saving your money for the actual feast.
Find out more:'3. Take advantage of loyalty points'
Most high street chains offer loyalty schemes that let you earn points as you spend, which you can then swap for vouchers or discounts.
In the run-up to the holidays, look for retailer point-boosting promotions or exclusive app offers that give you bonus points on items you were already planning to buy. Saving these points specifically for your main Christmas food shop or high-ticket presents can ease financial pressure.
Find out more:4. 'Stick to a Christmas food shop plan'
Major supermarkets announce their festive food ranges weeks before Christmas, giving you plenty of time to plan your menu and compare prices before you shop. This can help you stick to your budget and avoid impulse purchases.
Find out more:5. 'Take on a savings challenge'
A small savings challenge can help you set cash aside for festive expenses. For example, putting away £1 every day from 14 October to Christmas Eve would give you £72.
Alternatively, a shorter 1p challenge over the same period, saving 1p on day one, 2p on day two and so on, finishing with 72p on Christmas Eve, would give you a total pot of £26.28.
Find out more: .6. 'Choose handmade gifts and cards'
If you’re feeling crafty, handmade gifts are a great way to save money while keeping things thoughtful. Simple ideas such as homemade chocolates, a personalised photo album or DIY bath salts won't break the bank, but still feel special. You can also think a little outside the box, such as making a custom presentation box to go with those homemade treats.
If you're looking for gifts for grandparents, get the kids involved. A painted plant pot with their favourite flower or homemade candles in their favourite scents make great gifts and keep them entertained for a few hours. Plus, you can then get away with things looking a bit rustic.
Find out more:7. 'Reduce and reuse'
Before buying anything new this year, take stock of the decorations, wrapping paper, and cards you already have, and consider what you can reuse. Reusing last year's leftovers or repurposing things around the house saves you from buying again. Old Christmas cards can be handy – you can cut them up and use them as gift tags this year.
8. 'Set up a secret Santa'
Secret Santa is a simple way to cut costs and remove the pressure of finding a gift idea for multiple people. You can use free online generators to draw names if you can't be in the same room before Christmas.
To keep things budget-friendly and fun, you can add a further creative twist, such as 'charity shop finds-only', handmade presents or edible gifts. Alternatively, try a White Elephant or Yankee Swap, where everyone brings one wrapped gift to a central pile, then takes turns picking a present or swapping with someone else.
Find out more:9. 'Earn cashback when you can'
Cashback rates vary by retailer, and the highest payouts are often reserved for certain customers, such as new account holders or those who spend over a specific amount. However, you should never let cashback dictate where you shop. Focus on the best overall deal, not just the highest cashback offer.
Cashback credit cards are another way to earn money back on your spending, including Christmas purchases. These give you a percentage of what you spend back as cash, although some charge an annual fee. Only consider them if you can pay your balance in full every month, as interest charges could quickly wipe out any rewards.
Find out more:10. 'Scout out online codes'
Before checking out when shopping online, get into the habit of searching for active discount codes. Retailers regularly offer first-time customer discounts, free delivery or money off when you hit a minimum spend.
You can search for these codes online, sign up for a newsletter/create an account with the retailer to access them, or add a browser extension that automatically applies them.
However, browser extensions monitor your browsing to find deals, so these companies can also collect data on your overall shopping habits. Alongside this, browser extensions often override standard affiliate or referral links at checkout. So, if you clicked a link to support a specific creator, charity or smaller blog, the extension may swap in its own affiliate ID to claim the commission.
Find out more:11. 'Don't buy unnecessary gifts'
Many of us can admit to buying something for someone just because it's Christmas. Think an extra pair of socks, a silly T-shirt or maybe a bath set – forgetting the person doesn't actually own a bath. Making a gift plan and sticking to it can really help you stay on budget.
For older children and adults, consider slipping an IOU into their stocking that promises them something special in the sales. You could save yourself a small fortune by holding out from buying the game console until the January sales.
source https://www.which.co.uk/news/article/11-ways-to-boost-your-budget-this-christmas-afWKg1g82kga