Christmas in Australia is a wonderful time of year but it can also be expensive! Between Christmas gifts, decorations, entertaining and travel, it’s easy for the festive season to stretch your budget.
Whether you’re saving for a special treat or simply want to spend less this year, these 25 practical tips will help you enjoy a joyful, stress-free Christmas without breaking the bank.
Set a Christmas budget
If you want to curb your Christmas spending, make a budget and stick to it. It’s not a Scrooge thing to do. It’s the sensible thing to do. And then keep track of your Christmas spending by using the Track My Spend app or an Excel document
Don’t charge to a credit card
Instead of charging your Christmas spending to a credit card, save for Christmas expenses by putting money in a Christmas savings account or buying a $10 gift card each week to spend on Christmas. This avoids credit card bill shock in January and worrying about credit card interest payments.
Buy for fewer people
Instead of buying gifts for every member of your extended family, opt for Secret Santa and set a limit to how much you are going to spend. For friends, decide in advance that you’re not going to swap gifts.
Limit gifts for kids
It’s easy to go overboard and buy lots of gifts for your kids. However, increasingly parents are following the four gifts rules. This involves giving your kids something they need, something they want, something they read and something they wear.
Shop the sales
Buy Christmas presents when the sales are on. The half-yearly sales are a great time to shop. Not only do you save money but you avoid the pressure of Christmas shopping. However, if you miss these sales, you can still find great deals in November and December. Keep an eye out for deals on the Black Friday / Cyber Monday sales in November. Also, check factory outlets for discounted goods.
Save money buying online
Look for coupon codes, sign up for VIP programs and check for free shipping offers. Always buy from reputable Australian websites.
Make homemade gifts
Consider making gifts instead of buying them. Here’s our article on gifts you can make with your kids. You can create heartwarming gifts like beautiful succulents, fresh herbs, baking mixes, DIY gift baskets, home-made soap and bath salts, homemade chutney and sauces, etc. If you plan to make handmade Christmas gifts or crafts, start earlier in the year to avoid that last-minute rush. Stock up on craft items while they’re on sale.
Make personalised gifts when they’re on sale
If you like making photo gifts such as photo calendars, mugs and T-shirts, purchase them on sale usually in the months before Christmas. You can usually get 50% off before peak times.
Shop at dollar stores & op shops
Find affordable gifts and decorations at The Reject Shop, Kmart, Big W or your local Vinnies and Salvos stores. You may even score unopened items perfect for regifting.
Limit spending on postage
Buying for interstate friends? Order gifts online within their region to save on postage or choose e-gift cards instead.
Cash in your points
Check your Flybuys or Woolies Rewards points to see what you can redeem them for. Ditto for Qantas or Velocity points. You might find you have an amount that you can use for Christmas groceries and gifts.
Give “time” gifts
Offer your time instead of spending money. Create homemade coupons for babysitting, car washing, cooking a meal, or a digital detox day together.
Save money on your wardrobe
During the festive season when there are so many events, you might be tempted to go out and shop for clothes. However, before you rush out to the mall, check your wardrobe to see what you have. Can you add accessories or shoes to repurpose an outfit?
You can also share your clothes with your friends. If you have an occasion to go to like a Christmas or New Year’s party, pause before buying something new. Ask your friends if they have a dress or outfit you can borrow.
If you can’t resist some retail therapy, sign up for email from your favourite shop. Often you’ll get reminders of upcoming sales, VIP customer discounts or even special shopping nights.
Save money on babysitting costs
It’s great getting invited to Christmas parties and other festive events without kids but not if you have to spend lots of money on babysitters. See if you can swap childcare with friends so that they can look after your children when you need it and vice-versa.
Don’t go overboard decorating
As much as we all love a beautifully decorated Instaworthy home, it’s not worth spending lots of money on decorations. Reuse the decorations you have or combine them with a few new ones to create a new look. You can even make your own Christmas decorations using paper crafts, salt dough or fabric craft.
Save on wrapping paper
Don’t spend money on wrapping paper that gets ripped and torn in the race to open presents. Instead, reuse gift bags or place them in reusable cloth bags and tie with a nice ribbon. Got a large pile of kids artwork from daycare or school? Use that as handmade wrapping paper. You can even use scarves or other fabric to wrap presents.
Save on Christmas cards
Send Christmas wishes via email, direct message or social media. Or get the kids to draw Christmas cards and send it by email instead of paying for postage.
Make your own advent calendar
Rather than purchase an advent calendar, make your own reusable calendar that can be used every year. There are inexpensive ones available at Kmart, Target and Big W. Stuff them with different things like small chocolates, Christmas jokes and other inexpensive items.
Enjoy light displays for free
As stunning as Hunter Valley Gardens Christmas Lights Spectacular is, the cost can be prohibitive for some families. Instead, check out local Christmas lights in your local area. Some even have an accompanying soundtrack you can listen to in your car. Here’s a list for Newcastle and Hunter houses.
Enjoy free Christmas events
At this time of year, there are tons of free community Christmas activities and events for your family to enjoy. There’s Christmas craft at the libraries and Christmas carols throughout the region to enjoy. Check the Newy with Kids Christmas event guide for Christmas events in Newcastle, Lake Macquarie and the Hunter.
Enter Christmas competitions and giveaways
Save on buying gifts by winning prizes. At this time of year, there’s loads of giveaways to enter. Just keep an eye out and be in to win it.
Don’t pay too much for photos with Santa
Photos of your kids with the Man in Red can be super cute but don’t bust your budget. Keep a lookout for free Santa photos or selfie opportunities. Some local councils offer free Santa selfie opportunities.
Get a free letter from Santa
Although you can purchase a letter from Santa, get a free one from Australia Post. Get in the Christmas spirit and get your kids to write a letter to Santa. Simply bring your letter to your local Post Office before 24 December. Pick up a special gift and Santa’s reply on the spot. While stocks last!
Plan a menu in advance and stock up
Don’t spend a lot of money buying lots of groceries that you don’t need. It’s so easy to go overboard and have lots of foods that get thrown out. Plan your Christmas menu and buy non-perishable items in advance, preferably on sale.
Do a communal Christmas lunch or dinner
To save costs on hosting Christmas events, ask friends and family to each contribute a dish. This helps reduce the financial and cooking burden on one family.
Shop around for savings on alcohol
If you’re planning a Merry Christmas involving beer, wine and champagne, shop around and buy in cases to save more. Consider buying clean skin wine for significant savings. Also, join customer loyalty programs to receive member discounts. Dan Murphys’s program My Dan’s provides some great savings for those who swipe the card in-store or order online.
Stock up on petrol before the holidays
If you’re driving somewhere for Christmas, stock up on petrol the week before Christmas. Knowing that lots of families will be on the road, fuel prices skyrocket. Use NSW Government Fuel Check to make sure you’re filling up at the cheapest price.
Keep receipts in a safe place
Receipts are super valuable in case something breaks or needs to be returned so take a photo with your phone and file it. Also, make note of the warranty so it can be repaired or replaced during that period.
Stock up after Christmas
After Christmas, stock up on discounted Christmas items like cards, wrapping and decorations for the following year.
Christmas doesn’t have to cost a fortune. With a little planning, creativity and teamwork, you can have a festive season filled with laughter, love and meaning — not money stress. Focus on making memories, not maxing out your credit card!
Do you have any other tips for saving money at Christmas? Email us with your best suggestions.