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We are so sorry to mention Christmas in the middle of summer. But believe us, your future self will be glad we did!
Christmas is only a few months away and will be here before we know it. Let’s face it, once Back to School is over and done with, it’s then half term, Halloween, firework season . . . . and Christmas is next in line. So now is the best time to start to save money for Christmas, and also to think about how you can save money on what you spend this Christmas.
In this article we take a look at:
Many of us are in denial about Christmas. In our hearts we want a lovely cosy Christmas, with our home looking magazine-perfect and with all the traditional decorations, food, drink and gorgeously-wrapped gifts we could want. But our heads refuse to acknowledge that this kind of idealistic vision would most probably cost an eye-watering amount of money.
Not only that, but it’s easy to work on the assumption that somehow we will find money for Christmas nearer the time. Whereas the more realistic truth is that we are unlikely to be any better off at Christmas than we are now.
The good news is that there is still time to plan your Christmas spending and start working out how you are going to make it happen.
Start by making a list of absolutely everything you can possibly think of that you need to spend money on this Christmas. For example, gifts, cards, decorations, food and drink, travelling, socialising etc. Then estimate how much money you could reasonably expect to spend on each item. This is your starting budget for Christmas 2025.
If you already have the money for everything on your list you have plenty of time to go ahead and get all your Christmas shopping and arrangements sorted. However, if this is not the case, your two options are either to reduce your Christmas spending or to find ways to save money between now and Christmas so that you have enough money to cover everything you need.
Let’s take a look at both those options now.
At this point it’s a good idea to focus on what is really important to you about Christmas. Perhaps it’s creating magic for your kids, or spending time with family and friends, or even just being able to take a few days off work and totally relax.
Whatever your priorities for Christmas, it’s possible to achieve them without crippling your finances. In fact, you will enjoy Christmas much more if you are not having to worry about the price tag and the impact on your finances for the next few months.
So here are three ideas for how to save money on your Christmas spending but still have a wonderful time.
How many people do you buy Christmas gifts for? If you have had the same list for years, it may be time to review it. Especially if you are buying small gifts for lots of adults in the family : you are all probably getting fed up with having to buy each other things that quickly get forgotten.
So make the time to check with other family members if you could come up with an alternative plan. For example just buying gifts for the children or all clubbing together for a Secret Santa, which means everyone gets one decent gift instead of lots of small bits and pieces, and you all save money in the process.
Once you have reviewed your list, also set yourself a strict spending limit for each gift. Always remember that it’s the thought that counts, not the cost. And because you are getting organised early this year, there is also time to look around for better value gifts than if you leave everything to the last minute.
Another great way to reduce your spending on gifts and save money is to be more creative about where you get them from. Don’t automatically go to the big retailers for everything. You may be able to get some great products at small local businesses who will be really grateful for your support and may be willing to give you a special deal.
Also why not consider second hand items for a gift with a difference. For example vintage clothing, handbags or jewellery, old books or artwork, or antique household items such as mirrors, clocks or ornaments. These are the kind of gifts that people will appreciate and remember more than something mass produced.
If you have creative skills yourself, how about making some of your own gifts this year? Such as knitted or crocheted items, jewellery, food or drink, or something arty such as a painting or ceramic pot.
Or for a completely different alternative, create a homemade voucher pledging your time to someone who needs it. For example offering to babysit, housesit, give them regular lifts, cook meals, do some DIY jobs or clear their garden. These practical things may not seem very exciting but could help to transform someone’s life over the next few months and could really be the gift that keeps on giving.
The power of advertising tries to convince us that if we want to spend time with the people we love over Christmas then we need to spend a small fortune in order to do so. This is completely untrue!
Yes, Christmas is about spending time with people we want to be with. But it doesn’t have to come with a huge price tag.
If you are hosting Christmas, resist the pressure to buy food that you think you “should” ; just because it’s Christmas. Buy whatever food you, your family and your guests will enjoy the most. Why do turkey and all the trimmings if everyone would really rather have lasagna?
Also when hosting any kind of meal, don’t go overboard in the quantity of food you buy. Think back to previous Christmases and the amount of food that can get wasted. Rather than throw money away, plan portion sizes carefully so that you have enough food but don’t end up with unnecessary waste.
Another way to save money when meeting up with friends is to get together in a home rather than a pub or restaurant. If everyone brings drinks and food, or you club together for a takeaway, it will be just as much fun but work out much cheaper.
There is still time to put aside money for Christmas. The more you can spread the cost, the better. If you find it difficult to save money, here are a few ideas that may help you to boost your finances before Christmas.
It’s worth exploring the option of earning a bit of extra money before Christmas. For example, could there be opportunities for overtime or extra shifts in your place of work? If not, have a look around for any temporary seasonal work in areas such as retail or hospitality.
Another option could be to offer your services locally if you have skills to share. For example, cleaning, garden clearing, decorating, DIY, odd jobs or admin help – perhaps with Christmas shopping and wrapping.
Now is a really good time to have a clearout and sell your unwanted goods online, for example eBay or local Facebook Marketplace sites. Think particularly of seasonal items that people are likely to be looking for, such as:
It’s surprising how you can save money by doing a no-spend challenge for a short period of time.
A no-spend challenge is when you make a decision to stop spending money on a particular thing for a period of time, such as a week or month. Typical examples of no-spend challenges include takeaway coffees or meals, eating out, pub drinks, streaming services, clothes or beauty products. The idea is whenever you don’t spend as normal on your chosen category, you put that money aside (e.g. into a savings account) instead.
To find out more about no-spend challenges, check out our article Are You ready for a No-spend Challenge in 2025?
Another possible option to boost your Christmas finances is a small personal loan. This is usually better than using a credit card for extra Christmas expenditure. With a personal loan, you know in advance exactly what you have to repay and by when, whereas with a credit card your debt can just keep going up and up.
But only consider a loan if you are confident that you can meet the repayments, and will be able to pay the loan off in full as soon as you can. And if you do want to explore the option of a loan, Loans 2 Go offer a range of personal loans that may be able to help.
We hope that the ideas in this article help you to find ways to save money to pay for Christmas, and on the cost of Christmas itself.
For more ways to save money on day to day family life, check back here soon with us at Loans 2 Go.
Loans 2 Go is a trading name of Loans 2 Go Limited, registered in England and Wales. Company number 4519020. ICO registration number Z720743X. Registered address: Bridge Studios, 34a Deodar Road, London SW15 2NN. Authorised and regulated by the Financial Conduct Authority (FRN 679836). *Payment by bank transfer once application approved, subject to our working hours of Monday to Friday: 8am to 8pm and Saturday 8am to 5pm. All loans are subject to eligibility & affordability criteria. Max APR 815.6%. Minimum repayment period 18 months. Maximum repayment period 24 months.
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