Top tips for Christmas on a budget

With all the demands on the wallet that the festive season can bring, it might sound like a tall order to tighten the belt at Christmas time. But doing the silly season on a budget (without feeling like the Grinch), is not only possible but it’s an important part of setting yourself up for a healthy financial new year.

Some simple tips to help you plan a great Chrissie on a budget:

1. Budget ahead for Christmas

The ‘B’ word might not jingle everyone’s bells, but budgeting in advance for Christmas spending is a great way to avoid budget blow-outs over the summer break that can leave you behind the eight ball in the new year. As author Dave Ramsey puts it, “a budget is telling your money where to go, instead of wondering where it went” and Christmas spending is no different. Use our online budget planner tool to work out how much you can put aside for Christmas without going into the red. First, enter your regular income, then enter all of your expenses including rent/mortgage repayments, utilities, insurances, car expenses, groceries and entertainment. (Be realistic!) Once you know what’s left over, you can plan to put away a set amount each week in a dedicated Christmas savings account. 

2. Share your budget with friends and family

When people know you’re trying to be budget-conscious, they’re more likely to respect and support your spending choices over the holidays. Sharing your budget with friends and family is a good way to let them know what your spending limit is for the holidays. If you’ve got kids, involving them in discussions about your Christmas savings goal can be a great way to teach them about financial literacy, and will help set realistic expectations about what might be under the tree too!

3. Plan gifts within your budget

Want to give yourself the best chance of sticking to your Christmas budget? Plan your gift-giving ahead of time to avoid impulse buying. It can make things a whole lot easier too when you get the whole family on board the thrift train - why not try Secret Santa this year? Or simply put a spending limit in place that works for everyone’s budget? 

4. Tighten the belt on the Chrissie spread

Keen to curb those Christmas calories and save some dollars on the catering too? The average Aussie gains 0.8-1.5kg in weight over the Christmas break, and while we all love left-overs, with so much food often going to waste after Christmas Day, thinking ‘less is more’ will help you save in more ways than one this year.

5. Free and low cost holiday activities

Finding ways to fill the summer holidays with fun activities that don’t break the bank can be challenging, especially if you have kids. Your local council website can be a good source of inspiration for free events and activities over the break. Plus, planning your holidays ahead of time will help you make the most of affordable holiday options like house swapping with friends, backyard camp-outs, crafternoons, treasure hunts or outdoor adventures to explore your own part of the world.

6. Making memories together

Sharing experiences and making memories that last a lifetime are the gifts that truly keep on giving. The gift of quality time spent with those we love can bring much more satisfaction than the things that money can buy, especially when budget blowouts often mean starting off the new year in debt. Why not make a goal this Christmas of making great memories while spending less, and capture all the special moments in photos, journals or albums for the kids. 

Ready to whip your savings into shape for Christmas? 

Explore your account options here.