How to budget for Christmas

Christmas comes around quickly every year, don’t you think? No matter how organised we feel in July, come October we’re panicking a bit. Six weeks is not enough time, surely!

When it comes to the festive season, there’s a lot to think about. As well as the general organisation and logistics – think school nativities, office parties, secret santas and putting the tree up – budgeting is an important part of Operation Christmas, and one that’s good to start as early as possible. 

As the cost of living increases and we all start to watch the pennies a bit more, Christmas looming in the near distance might be a worrying prospect. But the good news is it’s never too late to start saving for Christmas, and even small habits can add up to a lot by the time December rolls around. 

Take a look at our tips for Christmas on a budget and get your festive financial planning started today. 

Christmas may feel very close, but there’s still time to start saving. Plus, planning out your presents and thinking about more meaningful gifts that don’t cost a lot (or maybe don’t cost anything at all!) is a great way to stretch your budget even further. 

Start small and work your way up – so if you’re working from home, pop a jar on your desk and add the cash you’d usually spend on lunch at Pret each day. 

You can save the money you’d use for your daily takeaway coffee, bus fare or parking meter too. And even if you are going into the office – why not take a packed lunch instead of paying out for a soggy sandwich? 

Another great way to save small amounts that really add up is to use an app like Plum or, if you bank with Monzo, the Coin Jar feature. They work by rounding up your payments to the nearest pound and transferring the extra pennies into a separate pot. 

So if you did buy a £2.75 coffee on your way to work, your bank would allocate £3 of funds to that purchase. £2.75 goes to the coffee shop while the remaining 25p goes into your separate pot, and those little amounts will really build up over time. 

The key to saving money at Christmas is all in the planning. We spend the most money on those last minute panic presents – a chocolate fondue set for your mum or golfing experience for your grandad, for example. 

Avoid splashing the cash on Christmas Eve by planning your present list now and assigning a budget to each person.

Start by writing everyone you need to buy a gift for, and read on for ideas on how to cut that number down! Once you’re happy that everyone on your list must have a present, start to think about what they’d really like. 

You could browse our Christmas section for inspiration, think about their interests or even see if you can make them something (again, see below!). 

Put a maximum amount next to each name, then total up at the end. If the total feels too high, go back and rethink your ideas until you’re at a figure that fits your Christmas budget. 

The run-up to Christmas is a busy, stressful time – we’re often rushing around trying to get everything done, with no time to really think about the things we’re buying. 

This year, as the cost of living pinches our pockets and we know that so many Christmas presents end up in landfill, try to make time to consider more meaningful gifts for your friends and family. 

You don’t have to spend hours crafting something – you could print off some favourite photos and put them in simple frames, or fill a wicker basket with tasty treats and a classic DVD for a movie night in January. 

If you have small children, rope them in to something crafty – grandparents will love a year’s worth of drawings made into a calendar or a piece of painted pottery. 

If you love the gift of giving and want that warm, fuzzy feeling that comes with opening presents, why not take charge of a secret santa for your friendship group? 

Gather a group together and use a site like Elfster to randomly assign names to everyone, then set a limit for a fun, frivolous present (£15 is the perfect amount, we say) and have fun choosing something for your recipient. 

A single amount is much easier to incorporate into your budget, and there’s real joy in a shared present-opening experience. Especially if you add prosecco! 

In the run-up to Christmas, there are loads of deals flying about and if you’re savvy, you can save plenty on your presents. 

Sign up for newsletters from your favourite brands and use websites like Hot UK Deals and Money Saving Expert to keep track of changing offers so you get the best possible price for your festive shopping. 

The two biggest chances to save before Christmas are Black Friday and Cyber Monday. Sign up to receive newsletters from all your favourite websites so you know exactly when the sales start, and keep a list of items you want to buy. 

Be strict, stick to the plan and don’t be tempted by that fancy handbag you’ve had your eye on. Of course, you could always drop the link to said fancy handbag in the group chat and hope someone takes the hint…!

It’s easy to forget, but at its heart Christmas is about love, community, support and celebration. Presents are great, but what matters most is you’re surrounded by those who love you. 

So if you’re finding your budget just won’t stretch to presents for everyone, cut yourself some slack – this is a difficult year for many people, and there is no shame in prioritising more important things. 

Encourage your friends and family to focus on other things this year – like movie nights, carol singing, Christmas crafting and walks in the snow – and enjoy good food instead of tons of gifts. Shifting the focus will make for a much more enjoyable day and might even help you create change for the future, too. 

Now you’ve sorted your festive finances, it’s time to get your home ready for Christmas – take a look at these top tips from interiors influencer Mo Hussen to get started.