7 money hacks for doing Christmas on a budget without being Scrooge

Doing Christmas on a budget this year? You’re not alone. But you don’t have to miss out on the fun and frivolities.

As the year draws to a close, Australians are facing ongoing cost of living pressures, high interest rates and rents, rising unemployment, plus a looming federal election to boot.

Then there’s the global influences that may cost us more into next year on everything from energy and petrol to imported goods.

Faced with all this, many Aussies unsurprisingly want to keep a tight lid on their spending this Christmas. Thankfully, you can do exactly that without sacrificing a good time.

Here are some tips for doing Christmas on a budget:

1. Check the sales

Many retailers are feeling the squeeze right now and they’re discounting prices to entice shoppers.

Bear in mind that unlike recent years, the Black Friday and Cyber Monday sales weekend ticks over into December this year – factor that into your pay cycles and monthly budget.

Save on next year’s shopping too by picking up festive wares in the post-Christmas sales.

2. Embrace charity shops

Charity shops have plenty of unworn clothes with their original tag still on and homewares still in their original box, meaning you can buy a brand new gift without paying the brand new price.

Remember, though, that toys and kids’ clothes are often in short supply in the lead up to Christmas.

Why not help someone else by donating your unwanted goods at the same time you go browsing for gifts?

3. Don’t give ‘stuff’

Many people used the pandemic lockdowns to declutter their living spaces. Who really wants to fill them up again?!

Consider consumables and handmade gifts (such as Christmas cakes, puddings and treats) which are easily used by recipients and fun for your family to make, not to mention easier on your hip pocket.

Making up a hamper of goodies can even be multiple gifts in one – the hamper itself and the social engagements it prompts to share those goodies with loved ones.

4. Play Secret Santa

I’m a big fan of Secret Santa – and it’s especially good for larger families.

Not only does it save you having to buy something for everyone, but you can focus your attention on getting a much more thoughtful gift.

Another bonus? It encourages everyone to spend the same amount, avoiding tensions over who has more cash to splash (more on that shortly).

Alternatively, chip in together for one large gift (such as siblings buying for a parent). They get something they may not otherwise afford themselves, while you can pay less per person than buying individual gifts.

5. Share hosting duties

While the cost of gifts is often the focus, hosting Christmas meals doesn’t come cheap either.

Consider divvying up who brings what – meal courses, snacks, drinks, bon bons etc – to share both the cost and the workload.

Just be sure this is communicated clearly to everyone beforehand. Obviously, you want to avoid double ups or forgetting the main course. But some people and cultures don’t appreciate people turning up to their home with food, so check beforehand that everyone is on the same page.

6. Avoid the debt hangover

The festive season may be a time for giving, but giving yourself a nasty Christmas debt hangover is something you can – and should – go without.

To avoid racking up a big credit card bill:

• Set a shopping budget and stick to it.
• Shop around for the best price (factor in any shipping costs for online purchases).
• Consider using cash instead of card in-store, for better visibility over your spending.
• Redeem loyalty points and vouchers instead of using money.
• Don’t do your shopping last minute, when adrenaline can override common sense.

7. Don’t talk money

This isn’t so much about saving money but saving relationships.

Money is a sensitive subject for many people, particularly at a time when so many families are doing it tough.

Be mindful that discussing financial matters can cause tension, especially where someone is struggling while someone else is sitting comfortably – often referred to as the ‘haves and have nots’. That tension may simmer in the background for days, weeks or years to come. Or it may boil over into a heated argument that spoils Christmas for everyone.

So, avoid the topic altogether and let everyone be a ‘have’ for the day – having a great time!

Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754.