Is it time to start thinking about saving for Christmas already? Whether it’s January or November, now’s the perfect time to get savvy about your Christmas fund.
If you want to save money for Christmas and make your money go further you’re in the right place. Here are some of my favourite ways to save for Christmas.
1. Set a Budget
Buying at this time of year can quickly spiral out of control. Keep yourself on track and let go of some of that anxiety around spending by creating a Christmas budget.
Open up your favourite spreadsheet software (I’m a fan of Google Sheets!) and start a new document. Separate your budget out into categories so it’s easier to plan and track your spending for each.
Here are some of the categories I’d use:
- Activities and experiences (e.g. a visit to see Santa)
- Christmas gifts
- Christmas food and drink
- Stationery (cards, gift wrap, etc.)
- Tree and home decorations
- Travel and accommodation (if you’re travelling)
You might want to add to or change this list to match how your festive season looks. Think about your family traditions and how you usually spend the Christmas period. Walk through your days if that helps you think about the different things you’ll need to find, create, or buy.
With your categories sorted, assign a budget to each of them. It might help to think about the different elements within each first, so you can come up with a total that way around. This works great for categories like gifts, where you might have a set spending amount per person.
Be realistic about your Christmas budget and stick to what you find achievable. You can always add a separate category to the end filled with ‘extras’ that you can treat yourself to if there’s extra budget leftover.
2. Make Regular Monthly Savings
Christmas can be a really expensive time for most of us. Make it feel like a less challenging task by making regular monthly savings to start building your Christmas fund nice and early.
Once you’ve created your budget you’ll have a rough idea of how much you’ll need to pull off the festive experience you’re looking for. Think about your current savings or any funds you’re expecting to have in before then. After that, divide the figure that’s left over by however many months there are until Christmas. This is your monthly savings goal.
Not sure where to start when it comes to tracking your goal? I’ve created a free savings tracker that you might be interested in. It’s perfect if you like having a visual reminder of your progress and what’s still outstanding.
You could also take my 52 week money saving challenge and modify it to suit however many weeks you have left until the big day. There’s a free printable you can download to help you keep track of your saving goals.
When it comes to saving for a big event like Christmas, I prefer to keep my funds somewhere separate. That way, I know I’m less likely to dip into them for an everyday treat. Most bank accounts allow you to create an associated savings account. You could also use the Spaces feature if you bank with Starling Bank, which I often use for my savings goals.
3. Plan Your Gift Ideas
One of the major problems I encounter at Christmas is over what gifts to buy for people. Especially with the kids. This means you can end up buying more than you intended as you try and search for that ‘perfect’ gift. Nip this in the bud by planning your gift ideas in advance.
This part of saving for Christmas can actually be really fun. You get to think about what your gift recipient might really love, then go hunting for the best inspiration and deals to make that happen.
To keep things simple, add your gift ideas to your Christmas budget. You can make a column for each gift recipient and make notes about your planned gift alongside it. Then you can do some research and add an approximate figure next to it. You now have a gift idea, the rough cost, and know where you can buy it from at a great price.
4. Track Your Spending
It’s completely normal for spending to run away with you at this time of year. There’s all that extra temptation about. Festive scented candles, decorations for your home, and a new Christmas trend that feels like it’s everywhere. Stick to your budget and stay conscious about your buys by tracking your spending.
How you do this is up to you. You could move all your Christmas funds into a separate account and use that only for your festive season purchases. You could withdraw your funds and use cash only to pay for your Christmas treats. You could also keep track of your spending using your online banking or receipts, then noting down how much you’ve spent.
If you’ve set up a Christmas budget, use this to record your spending and progress. Check off or turn your gift ideas a different colour once you’ve bought them, and record the spend against each item. This is a great way to compare your initial budget with your current spending, so you can see if you need to cut back in another area to meet your goal.
5. Buy Gifts Throughout The Year
The best way to save for Christmas is to be prepared. Start thinking about it nice and early and you have much more time to plan, save, and be more savvy about buying gifts for friends and family. Buy gifts throughout the year to make the most of what’s out there and spread the cost.
It might seem a little out there to pick up Christmas gifts in March, but if there’s a promotion running on a major gift idea it could save you in the long run. Pick it up in the sale and not only have you saved money but you’ve given yourself some time back at that busy time of year.
If saving monthly doesn’t suit you, this can be another way to achieve a similar effect. Buy throughout the year and you’re spreading the cost. Saving £50 a month might feel more difficult for you than buying a few gifts for your friends that month. And that’s okay. It’s all about saving for Christmas in a way that works for you.
6. Take Advantage of Online and In-Store Offers
This kind of goes hand in hand with buying throughout the year. Taking that approach means you’re open to scouting for deals and buying ahead of time. Use this to take advantage of offers and promotions that don’t typically come up at peak present buying time.
Maybe you really want to pick up an ereader for someone you love. You know that some retailers typically discount these around Black Friday or other promotional periods, so keep an eye out around then for a great deal.
Think about other deals and promotions that you could take advantage of too. This includes buy one get one free, 3 for 2 on gifts, and free gifts with purchase. These are all great ways to make your money go further this Christmas.
7. Search Online For a Better Deal
So often we’ll be tempted by something festive when we see it in store or as we’re browsing online. But wait — hold fire! That might not be the best deal you can find. Take a look around the internet to see if you can save money shopping online.
I love using Google Shopping for hunting down deals. Pop what you’re looking for in that familiar search bar and use the Shopping tab to look at different options. You might find a specialist retailer that’s running a promotion or an independent store where you might get a more personalized experience for your money.
Always do your due diligence when it comes to an unfamiliar store. Research it online and on social media, check out online reviews, and check that everything’s in order before you buy. The Citizens Advice website has some great tips on how to check if something might be a scam.
8. Use Cashback Sites
Cashback sites are a great way to make extra money from purchases you were considering anyway. Use them all year round to build up a little pot of money that you can put towards your Christmas budget.
A lot of the time, websites will get a ‘kickback’ for referring you to a retailer’s website if you make a purchase. Cashback sites share some of this with you, so you can make a percentage of your eligible purchase back. It might sound confusing, but cashback sites make it simple — often all you have to do is click through to the retailer from the cashback site’s dedicated page.
Two of the most popular cashback sites in the UK are Quidco and Topcashback. They’ve been running for years and have a great reputation when it comes to authenticity and payouts. If you sign up, make sure you read through the terms and conditions. Pay close attention to any other conditions that apply to specific cashback offers. Sometimes they’ll only apply if you’re a new customer, or if you buy a specific item.
Cashback from these sites often takes months to land in your account. Get into the habit of checking a cashback site first to see if you can get some money back from your online purchases and do this often throughout the year. That way, by the time Christmas rolls around you should have a few pounds in your account to withdraw and spend.
9. Cash In Your Rewards Points
As well as cash back sites, many retailers also take part in rewards points promotions. You might have a reward card for a supermarket or a health and beauty store that lets you collect points. Every so often you can exchange these points for money off a purchase. Save these points up and you’ll have a nice little pot to spend at Christmas.
If you regularly buy from a certain shop, whether online or in-store, it’s worth considering their reward card. Take a look at what it offers you, the benefits you’ll receive, and whether there’s any cost associated with having one. It’s also a good idea to weigh up the value you’ll get compared to the value of sharing your personal data with the retailer. Don’t forget to unsubscribe from the sales emails if you want to!
With a reward card in your wallet you can pick up points throughout the year. You can also maximise your savings by keeping an eye on any special purchases that’ll earn you more points. Don’t buy things you don’t need, but picking up some new shampoo a week earlier might gain you extra points. It all helps towards your Christmas pot at the end of the year.
10. Simplify Your Gifting Traditions
Christmas doesn’t have to be expensive, but so often it is because of the traditions we have as families. You might all gather around and exchange handpicked gifts for each other, or have a loosely defined spending budget for each other. If you want to save money this year, switch up some of your family gifting traditions.
Maybe you can relax the spending target on each others’ gifts. As we grow older we’re often less concerned with getting the latest, most expensive gift from our family and friends. Many families spend more children at Christmas, but for adults you can get away with dropping the limit really low. Instead of spending £50 on each other, gift a bottle of wine or something around the £10 mark instead. Some families even drop presents for adults completely.
If your family would still like to give each other something more extravagant, why not pool your funds? Contribute a smaller amount each towards a joint present for someone you love. You could also try the secret santa approach and give and receive one gift only.
11. Declutter Your Home
Is it just me or do the things in your home multiply massively when it comes to the festive season? Keep control of the things that enter and leave your home, and make some money, by decluttering your home.
I’m a big fan of clearing your home of clutter. Not only does it give you the chance to sell some of your unwanted things for extra funds, but it’s great for your wellbeing and helps keep you organised.
If you’re new to the idea of decluttering or want a helping hand to keep you on track, try my free declutter your home challenge. The idea is to tackle a different area of your home each day so you end up with a home that feels less cluttered. You don’t have to do the days consecutively or stick to the schedule — it’s just there to guide you along if you’d like it.
Once you’ve identified some things you can sell, head to marketplace sites like Facebook Marketplace or Gumtree. List your items, stay in touch with interested buyers, and meet them in a safe way to make the transaction. If you enjoy this, you could even offer to sell for friends and family as a way to earn extra money.
12. Enter Competitions for Prizes
If you’re a comping pro, chances are you’re already on the ball when it comes to this. If you’re new to entering competitions though, it can be a fun way to pass the time with the added bonus of maybe winning a great prize. You can then use those prizes as Christmas gifts or to enjoy a more lavish festive season.
Use a site like Competition Database to track your competition entries and save you wandering all over the place to find things to enter. I like to browse by value first and enter any that look interesting or would bring me a life-changing windfall or experience. After that I’ll browse by category for things I’m most interested in. You can also filter by competition type, end date, and more.
A word of warning though — entering competitions can be really time consuming. It also might not pay off. Don’t feel disheartened if you don’t win any prizes while others seem to have them coming out their ears. If it feels fun, spend a few minutes a day or a few hours a week on entering competitions. I wouldn’t recommend dedicating time to this over potential paid work or something that brings you more joy. The chance of winning a spa gift voucher isn’t worth missing your favourite game or skipping out on a paid opportunity.
Saving for Christmas the Smart Way
It can be tempting to keep up with what’s trending and spend more than you want to at this time of year. Instead, look for fun, achievable ways to save for Christmas the smart way.
Build up your festive savings pot throughout the year using cashback sites, monthly savings goals, and promotional offers. Set a budget and keep track of your gift ideas, spending, and how much you have left over. Switch up your traditions and embrace a more simplified approach to the holiday season. All this helps make saving for Christmas easier, achievable, and fun.
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