Christmas cheer without the credit card fear
Christmas is one of the best times of the year, but it’s also one of the most expensive. Between gift shopping, decorations, travel plans, and festive feasts, it’s easy to feel like your wallet’s taken a direct hit from Santa’s sleigh. But don’t worry – with a little planning and some savvy tips, you can enjoy the season without ending up in a financial hole.
5 smart tips to save this Christmas
1. Set a realistic Christmas budget
First things first: figure out how much you can afford to spend this Christmas. According to Moneysmart, the average Australian spends around $1,200 on Christmas, with gifts making up nearly half that amount. The trick? Decide your limit before you hit the shops.
Pro tip: Use budgeting apps like Pocketbook or Goodbudget to track your spending in real time. They’re like your personal Grinch, keeping you from going overboard.
“A clear budget is your best defence against festive overspending.”
2. Make a gift list (and check it twice)
Impulse buying is the enemy of a good Christmas budget. Before heading out, list exactly who you need to buy for and what you’re getting them. Stick to it like glitter sticks to wrapping paper.
If you’re feeling creative, DIY gifts can be thoughtful and budget-friendly. Think homemade cookies, candles, or a photo album filled with memories. Not crafty? No worries – just keep it simple and meaningful.
Stat to know: Australians are expected to spend $25 billion on Christmas gifts in 2024, according to the Australian Retailers Association.
3. Shop smarter, not harder
Online shopping can be a lifesaver, but it’s also a danger zone for mindless scrolling and overspending. To avoid falling into the trap, shop during sales events like Black Friday and Cyber Monday. Many retailers also offer cashback deals.
Another trick? Use price comparison sites like GetPrice or PriceHipster to find the best deals.
“In 2024, 85% of Australians said they’d shop online for at least one Christmas gift.”
4. Don’t let food blow the budget
Christmas feasts are iconic, but they’re also expensive. Save money by planning your menu in advance and sticking to seasonal produce. Better yet, make it a potluck! Asking everyone to bring a dish not only lightens the financial load but also makes the meal more diverse.
Pro tip: Check supermarket catalogues for weekly specials and bulk-buy non-perishable items well ahead of time.
Stat to know: According to Finder, Australians spend an average of $122 on Christmas Day food.
5. Focus on what really matters
At the end of the day, Christmas isn’t about expensive gifts or Instagram-worthy table settings. It’s about spending time with the people you care about. Organise free or low-cost activities like watching Christmas movies, hosting a gingerbread decorating contest, or exploring your local neighbourhood’s Christmas lights.
“The best Christmas moments are the ones that don’t come with a price tag.”
How to keep your budget on track
Use the 50/30/20 rule
This classic budgeting method can work wonders during the holidays:
50% for essentials (food, rent, utilities).
30% for wants (gifts, decorations, celebrations).
20% for savings or paying down debt.
Pay with cash when possible
Using cash instead of cards can help curb overspending. Once you’ve hit your limit, you’re done – no sneaky credit card charges to deal with later.
Keep an eye on credit
If you do need to use a credit card, make sure to pay it off before the interest piles up. The average Australian credit card debt post-Christmas is $1,400, according to the Australian Securities and Investments Commission (ASIC). Avoid being part of this stat!
Final thoughts
Christmas doesn’t have to come with a financial hangover. With a bit of planning, some creative gift ideas, and a focus on what truly matters, you can celebrate the season without blowing your budget. So go ahead and enjoy all the magic that December brings – just make sure your wallet survives to see the new year.
Resources
Moneysmart – Christmas Budgeting Tips
Australian Retailers Association – 2024 Christmas Spending Forecast
Finder – Christmas Food Spending Stats
Roy Morgan – Online Shopping Trends in Australia