Christmas is the season of twinkling lights, sparkling socials, festive food and of course, thoughtful gifts. While it’s a time of joy, the cost can quickly pile up. To help you enjoy the festivities without overspending, we’ve put together some realistic ways to manage your money and make some Christmas savings. 

Read on to find how to create a budget, shop smarter, cut back on unnecessary expenses and save on gifts. For those gearing up for 2025, we’ve also highlighted Christmas savings options to help set you up for success next year and beyond. 

Our top tips on how to save money at Christmas...

  • Writing on notepad icon

    Create a realistic budget

    Plan what you can afford to spend and stick to it.  

  • Money in hand icon

    Shop smart

    Hunt for discounts, compare prices, and consider second-hand options.  

  • Love and care icon

    Cut back on unnecessary extras

    Simplify your celebrations by focusing on what truly matters—spending time with loved ones.  

Create a Christmas budget and stick to it 

The foundation to managing your money is understanding what you can afford to spend. You can do this by setting clear financial boundaries. Here’s how to create a foolproof budget and gain some extra Christmas savings:  

  1. Make a list and check it twice: write down all your Christmas-related expenses – consider food and drink, social events and gifts. Factor in the little things too, like wrapping paper, Christmas cards, postage, decorations and even donations. Next to each item, add a realistic spend. 
  2. Review and revise: go through the list and see if there’s any obvious areas you can cut back, make swaps or things you may have missed. Be honest about what’s necessary and what’s just a “nice to have”.  
  3. Track as you go: Now it’s time to track your spending and monitor it against your list. As you shop, pop the cost on so you can work out if you’re keeping within your budget. It will also  work as a handy tracker to know what you’ve bought and have still to do in the run up to Christmas. 

Plan your food shop  

Christmas wouldn’t be Christmas without some delicious treats. In 2023, 45% of our customers reported food as their top spending priority. So, if your weekly food shop increases during the holidays, here are some ways to trim the bill: 

Create a guest list: know exactly how many people you’ll be catering for when you’re planning on having visitors. 

  • Write down a shopping list: it might seem obvious, but planning out a menu and what you’ll need will really help when you’re out buying your groceries. There’s a lot of temptation and filling up the trolley with impulse purchases could put a strain on your wallet. 
  • Shop around: consider where you’ll buy the items from. You might find  some items could be cheaper in a local supermarket or picking up bits online. It may even leave you a little more to splash out on in the butchers or local farm shop. Whatever your buying, you don’t need to get everything in one shop.  
  • Brand alternatives: Own brand alternatives can be just as good as premium options and a fraction of the cost. When thinking about budgeting, working out where to cut costs in some areas will only mean pressure is taken off other spending essentials!  
  • Use your leftovers: The fridge may be full Christmas eve with meals to prepare, and full Boxing Day with leftovers. Freeze what you can or turn it into pre-Christmas meals. The internet is full of creative and delicious way you can turn Christmas leftovers into scrumptious snacks!    

How to spend less on Christmas gifts

Thoughtful gifts don’t have to cost a fortune. Here’s some budget friendly tips for planning how much to spend on Christmas gifts:

  • Look for discount

    take advantage of Black Friday, Cyber Monday and other sales. Look for voucher codes, loyalty points and student discounts.

  • Buy second hand gifts

    Pre-loved items can make thoughtful and unique presents at a lower cost.  Online apps such as Vinted and eBay can have the ideal present at a fraction of the cost, or pop to your local charity shop and get yourself a bargain while also giving money back to those who really need it.

  • Keep track of what you’ve bought

    Make a list of gifts you've bought to avoid overspending or doubling up, especially if you’re starting early and may lose track.

  • Set a spending limit

    Agree on a cap for gifts with family and friends to keep expectations realistic.  

  • Add a personal touch

    Go homemade with gifts like baked goods or crafts – you can add a special touch without it costing a fortune.  

Remember to keep your money safe 

Christmas is prime time for fraudsters too. Shoppers are often searching and buying gifts from online sites we may not have used before, looking for cheaper deals and discounts.  To protect yourself from becoming one of the tens of thousands of people who fall victim to online fraud at Christmas, read our “12 scams of Christmas” blog for expert tips to protect yourself. 

Start saving for Christmas with Hodge  

When thinking about how to save money at Christmas, planning is usually the best way. Start saving early to spread the cost of next year’s celebrations.   

Cash ISA: Build tax-free savings for short-term goals.   

Fixed rate bonds: Lock in a great rate and save over the longer term.   

We offer competitive savings accounts to help you plan for festive expenses—whether you’re saving for this Christmas or the next.  Find out more about Christmas savings accounts. 

 

This article is correct at time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for advice. You can find a financial adviser and further personal finance information at unbiased.co.uk.