Christmas Budget: 7 Tips to Keep Your Finances Merry
After a long and hard year, we want to make the most of Christmas, filling it with days out, presents, and lots and lots of food. In the midst of all the holiday excitement, we forget about the Christmas budget. Some of us even like to ignore it until January. But maybe this time round, we can do without the financial hangover in the New Year. Only 29% of Australians manage to stick to their Christmas holiday budget, so let’s get that number higher. Read on for our top tips on planning a cheap Christmas budget this year (and sticking to it).
Overview:
- Make a list (and check it twice!)
- Make rules for your Christmas present buying
- Shop ahead
- Make your own gifts
- Reuse or make your own decorations
- Put Christmas dinner on a budget too
- Clean out your clutter for cash
7 tips for a cheap Christmas budget:
1. Make a list (and check it twice!)
Before things get too crazy, start planning your Christmas budget now. Think about your overall budget for the season and list absolutely everything you’ll be spending money on. Designate each item with a budget and make sure it all adds up to or below your overall budget.
Your budget list should include:
- Presents
- Food and drink
- Entertainment
- Decorations
- Travel
We also have the tendency to treat ourselves during the holidays so factor that in too!
While you might be wondering what the average Christmas budget is, keep in mind that a realistic budget looks different for everyone. Later in this article, we will be going over more ways you can cut those Christmas costs.
If you’re the type to have a big family Christmas, organise ahead of time who is bringing what and split costs where you can. You’ll be relieved to be saving both money and time. After all, many hands make light work!
2. Make rules for your Christmas present buying
2. Make rules for your Christmas present buying
Presents are what Australians spend the most money on, so putting some rules on gift buying is a good way to control how much you spend. It can be difficult—especially since we all want to spoil our kids and partners—but there are ways you can still make everyone feel special and included.
Here are some present rule ideas:
- The 4 Gift Rule: give the kids something they want, something they need, something to wear, and something to read.
- Set a price per present: everyone buys Christmas gifts on a budget without feeling bad about the price.
- Secret Santa: everyone buys one present for one family member. You can set a higher price limit since you don’t have to buy a present for everyone.
- Children only: if this year has a smaller budget, you can agree to only buy for children and do a present-exchanging game for the adults.
- No presents at all: some families opt for the experience route over gift-giving!
3. Shop ahead to keep the Christmas budget low
Though Black Friday and Cyber Monday sales in Australia are based on American Thanksgiving traditions, we’ve jumped on the bandwagon in the last few years. Do your shopping in November to take advantage of these massive sales for some Christmas presents on a budget.
It may take extra time but do your research or shop online to help stick to the budget. Check different stores for the best price. You can be surprised at how much you can save. If you have loyalty programs at certain stores, see if they can price match or price beat.
If you are going for the one present rule, you can still make someone feel spoiled with Christmas hampers on a budget. Hampers have that personalised touch where you can put all your loved one’s favourite things together, whether that be tea, cookies, or book accessories.
4. Make your own gifts
You can paint a mug, bake cookies, knit or crochet to make your family member something personal. Crafts can also be turned into a family activity for the kids to make presents for each other and teach them the spirit of giving.
If you’re low on time or creative energy , there are still plenty of cheap but thoughtful Christmas gift ideas, like photo albums, op shop finds, or even personalised “IOU” coupons for your partner. .
5. Reuse or make your own decorations
There is nothing wrong with reusing decorations! Odds are that something you already have is better than the tacky stuff they have in the stores these days. You can keep things fresh by picking a colour theme each year and using what you have to fit it.
You can make decorating a family activity and make Christmas decorations on a budget together! Here’s a quick example with paper snowflakes:
- Fold a piece of paper in half four times
- Use scissors to cut different shapes along the edges of the folded paper
- Unfold and enjoy your unique snowflake!
- Make more with different paper sizes, folding patterns and shapes
- Stick on your walls or ceiling, decorate your tree, or put them wherever you like
There are plenty of other crafts that you can do to make decorations and ornaments with budget items like paper, pom poms, and more. Just give it a quick search and see what you like! The best part is that you’ll probably have leftover materials to use for future holidays, saving money for next year.
6. Put Christmas dinner on a budget too
With supermarket costs soaring, we need to be careful with food spending. Buy what you can in advance and freeze any meat ready for the day. Leading up to Christmas, certain items get more expensive as they run out of stock a lot quicker. Research budget Christmas food ideas and use ingredients you already have to minimise spending.
You can also potluck style with extended family so that you can have a Christmas feast on a budget.
7. Clean out your clutter for cash
If you feel like your Christmas budget is too small, there’s still time to bag some extra cash to boost your festive finances.
One person’s trash is another’s treasure. Now is the perfect time to do a good spring clean and sell those items taking up space in your cupboards and storage. And that’s not the only thing you can do to make extra cash for Christmas. From side hustles like food delivery to renting out your storage space, anyone can make a bit more money for the holidays.
Need some last-minute cash to increase your Christmas budget?
Now that you know how to budget for Christmas, you might need a little extra push to get through the season. Take out an easy Christmas loan online with Swoosh and borrow between $2,200-$5,000 in time for the special holiday. Apply online today and we’ll get you sorted.
