Christmas on a budget: how to save money on Christmas gifts, decorations and more

Plan how much you will spend

Planning ahead is essential to helping you do all your Christmas shopping on a budget. Set an amount per person or a maximum amount for overall spending and keep referring back to it with every purchase.

We often overspend when we leave our festive shopping to the last minute. Don't think, “Oh well, I’ll get it later.” because later is likely more expensive. Buy what you can early on, like frozen foods and presents. Look around for sales and specials in the months running up to the festive season. Be sure to ask everyone you are buying gifts for what they want, and stick to it. Don't give in to temptation to buy all sorts of miscellaneous things that aren’t necessary.

If you aren't sure how much you need to spend on gifts, food, or decorations, have a look at our cost of Christmas study for a guideline when you are setting your budget.

Set a Christmas budget

This is absolutely key to having a successful Christmas on a budget. Decide how much you want to spend, and stick to it. To do this:

1. Track your income. Write down your entire income. This includes your main job as well as any side jobs. Decide what percentage of your income you can afford to spend on your Christmas budget.

2. List everything that you want to buy. Include every person you need to buy a gift for, every element of your Christmas meal, how many people you are planning on feeding, and your total sum for decorations. Mention only big ticket items, like a tree.

3. Make sure that they balance. Once you have allocated every cent, and your expenses minus your budget equals zero, then you have correctly allocated money to everything. Go over your list again, as Santa says, “Check it twice!” Be sure that you haven't missed anything. Remember that activities like going to the pantomime or travelling far to go shopping also have to come out of your budget.

There are many ways to keep track of your Christmas budget. Apps like Christmas Gift List and Christmas Budget Planner for Android or The Christmas Liston the Apple Store are great for micro-managing every element of your budget. Good old excel spreadsheets are another way to keep tabs. If you want to go REALLY old school, simply keep a journal. Write down all your lists on an individual page and be sure to take your journal with you when you go shopping.

Track your Christmas budget

Now that you have set your budget, written it all down, or are using an app, stick to it. Don’t overspend, no matter how tempting it may be. You now know exactly how much you will spend this Christmas and won't get any nasty surprises at the end of the holidays. Every time you make a purchase or spend money on anything Christmas-related, it needs to be recorded. Even if it's a tiny amount, be sure to write it down, fill in your spreadsheet or add it to your app.

Think about DIY Christmas decorations

Christmas decorations on a budget can be absolutely beautiful. If you love decorating for Christmas and need to keep your costs down, consider making DIY decorations. From tree baubles to wreathes, here are some of the best DIY Christmas decorations.

1. Pinecones. Pinecones can be used for so many things. They can be found all over the world for free, and all you need to do is string them together or paint them with a bit of sparkle. Find some small ones and connect them for a beautiful garland. Hang your garland on your tree or around your home. Brush them with a bit of silver paint and create a magical table centrepiece.

2. Star Ribbon. All you need for this is a piece of red ribbon, a piece of wood, and a few nails. Hammer the nails in a hexagon pattern on the wood. Then tie the red ribbon between them to create a star. You can make as many of these as you want. Decorate the wood with glitter for a sparkly effect. Hang your stars around your house.

3. Rustic twig decorations. A simple collection of twigs can be turned into the most beautiful tree decorations, or think bigger sticks for the rest of your home. Glue twigs into a snowflake shape with a few buttons, some plastic berries, or a bit of tinsel in the middle. Attach some strings and hang them all over.

4. Table centrepieces. The Christmas table is the heart of every celebration. Make yours a festive wonderland with a homemade centrepiece. Gather evergreen branches from trees outside, red ribbon, and pinecones. Attach them to a board or a piece of sponge. Add a few cheap white candles and some old Christmas decorations, and you have a stunning focal point.

5. DIY snow globe. Fill your house with festive and glittery homemade snow globes. Take a large jar with a lid. Attach your figurines, pieces of old Christmas tree, or whatever else you want to put in the snow globe to the lid with epoxy glue. Fill the jar with a mixture of water, glycerine, and glitter. Screw the lid firmly onto the jar. Turn the whole thing upside down and shake. Voila! Snowglobe!

6. Twinkle lights. Nothing says Christmas quite like twinkly lights. Get some cheap battery ones, and put them in old jars for mantle pieces and table decorations.

7. Fruit. Oranges, pomegranates, and even apples can be used to create a beautiful Christmas atmosphere. Stud an orange with cloves for warm smelling and attractive decoration.

Be creative with Christmas gifts on a budget

Buying gifts for everyone at Christmas can get expensive. Learning how to do Christmas gifts on a budget can be a real penny-saver.

Limit your Christmas gifts

There are so many things to get for people, even stuffing a stocking can end up costing a lot. Limit the number of gifts, for example only four per child. Talk to the adults in your family and let them know that you will be getting everyone only a few well-thought-out presents. Remember, it's the effort that counts, not the cost.

Set a maximum budget

Let everyone know what your maximum budget is per gift. That way you will avoid any disappointed faces.  

Find cheap Christmas gift ideas

Gifts from the heart need not cost a fortune. Take the time to really listen to your loved ones to discover what they need in their lives. Maybe someone wants a new set of earrings. You can pick up some beautiful ones or even make your own. Fragrant candles are always a hit and don't cost much. Travel mugs are another great idea, especially in winter.

Play secret Santa with your family

Instead of giving names and gifts, set up a secret Santa system. Give everyone a budget, and let them bring one gift. On the day they exchange gifts without knowing who they are from.

Make use of special offers like Black Friday

Have an idea of what you want to get everyone months in advance. Keep an eye on specials like Black Friday where you can pick up items for half price.

Second-hand gifts

Second-hand gifts are not what you think. Have a look through thrift stores for name-brand clothes or even crystal. Bluetooth speakers also make great second-hand gifts.

Making Christmas dinner on a budget

Once you have sorted out your Christmas budget for everything else, you can now turn your attention to the big meal. Christmas dinner is the main event at any party and can end up costing a lot of money. There are a few great ways to cut costs and still get all the festive cheer you want.

Make more than one of each dish

You may end up going to a few parties, each one expecting you to bring a meal. Make extra amounts of veg or even potluck so that you can portion them out.

Buy Christmas groceries in advance

You may be able to get a turkey off-season for cheaper. As the holidays approach, all the most popular food items go up in price. Keep an eye out for frozen goods that will keep in your freezer for a month or two.

Make everything in one pot

Crockpot Christmas meals save both time and money. Add a large chicken, potatoes, and carrots early on in the day, and simply put the whole thing on the table when done. You could have a few extra items like peas or rice on the side.

Plan your recipes

Certain recipes are cheaper to make than others. You don't need a massive, expensive turkey when a large chicken will do. Think outside the box, you don't even really need to serve traditional dinner at all. Freshen it up with a new dish like stuffed roast butternut, or a picnic ham.

Don't overcook

We all know how many leftovers are stuffed into the fridge once the Christmas dinner is done. Plan your meals carefully and try not to cook too much food. Portion everything for every person, and take into consideration how much people eat. Children likely won't eat much at all, and starches go a long way to filling tummies.

In today's day and age Christmas need not cost a fortune. You can have a wonderful Christmas on a budget, from decorations to gifts to food. WorldRemit has some great Christmas resources on our blog. If you’re interested in having a look at how much Christmas costs around the world, visit our study. You can also find out more about other Christmas traditions around the world here. We wish you a Happy Christmas !