How to Spend Wisely and Save Money in the Lead-Up to Christmas

Christmas is a time of joy and togetherness, but it can also put a strain on the wallet. Australians are expected to spend around $70 billion this Christmas season. But a fun festive season doesn’t have to mean a financial hangover in January. With some planning and smart spending strategies to save money, you can enjoy the holidays without breaking the bank.

Set a Realistic Christmas Budget

Start by figuring out how much you can truly afford for Christmas – include everything from gifts and groceries to travel and decorations. Many people set a budget to save money, but only about 29% actually stick to every dollar of it. To be one of the successful savers, decide on spending limits early and track your outlays. Consider using budgeting tools or your banking app to monitor expenses. Set clear limits (for example, a gift allowance of $20 or $50 per person) to help resist overspending. And remember, regular bills won’t disappear just because it’s Christmas – avoid the trap of “it’s only once a year” splurging if it will leave you in the red.

Plan Your Gifts and Avoid Overspending

Gift-giving is often the biggest holiday expense, so approach it with a plan. Write a list of everyone you need to buy for and set an affordable spending limit for each. If you have a large family or friend group, suggest doing a Secret Santa so each person only buys one present instead of many. This popular tradition can dramatically cut your gift costs while keeping things fun. It’s also okay to be upfront with family about wanting to save money – most people appreciate not having to spend a fortune either. For instance, homemade gifts like baked treats or a framed photo can be both personal and affordable. And if that must-have toy or gadget is outside your price range, consider waiting – popular items often go on sale after Christmas, so a bit of patience can pay off.

Shop the Sales: Black Friday, Click Frenzy & More

One perk of planning early is taking advantage of major sales events before Christmas. November now features huge retail events like Click Frenzy, Black Friday, and Cyber Monday, which many Aussies use to snag discounted gifts. In fact, Black Friday has recently overtaken Boxing Day as the biggest shopping bonanza. These sales can be a wallet-saver, but it’s important to shop with a strategy and not get caught up in the hype.

Smart shopping tactics: Before the sales, list the specific items you need and note a target price for each. When the discounts hit, stick to your list – don’t be tempted by “bargains” on things you don’t actually need. Compare prices beforehand so you’ll know if a deal is truly good, and use online tools to check various retailers. Look for bonus discounts too: a quick search for coupon codes can score extra savings, and cashback apps or sites might give you a little money back on top.

And remember, sales come and go – you don’t need to buy something just because it’s on sale. For any gifts you can’t snag early, the Boxing Day sales (26 December) will have massive deals as well. If you won’t see certain relatives until after the 25th, you could wait and pick up their presents in the post-Christmas sales. (It’s also the perfect time to grab next year’s wrapping paper and decorations on clearance!)

Trim Holiday Food and Fun Costs

Holiday meals and summer outings can be big budget-busters, but a little planning goes a long way. If you’re hosting Christmas lunch, make it a potluck – ask each guest to bring a dish so one person isn’t stuck paying for the whole feast. Australians love a good barbecue or picnic, and these casual gatherings can be cheaper (and just as fun) as a fancy dinner. When it comes to the grocery shop, write a list and stick to it to save money and avoid tossing extra “special treats” into your trolley. Watch for supermarket specials in the weeks before Christmas and buy non-perishables or festive ingredients on sale. Spreading out your food shopping can soften the blow to your wallet.

Don’t forget to use your loyalty rewards at the supermarket. Both Coles and Woolworths let you redeem points for dollars off your shop, and you can even bank your Everyday Rewards points to spend in one big chunk at Christmas. For decorations, get creative instead of buying new each year: reuse ornaments and recycle gift bags and bows rather than purchasing everything fresh. You can also involve the kids in making décor – DIY paper chains, salt-dough ornaments, and so on – for a fun, frugal family activity.

Finally, remember that summer in Australia offers plenty of free festive fun. Enjoy free activities like local light displays, community carols, or a day at the beach – making memories doesn’t have to cost a cent.

Enjoy Festivities Without Financial Stress

By budgeting and spending wisely, you can focus on what really matters at Christmas – without the dread of a big bill in the new year. Try to pay with cash or debit where possible, as it forces you to stick to your limits and avoid nasty surprises on your credit card. If you do use credit or buy-now-pay-later, have a repayment plan to clear it quickly and only borrow what you can repay in full – that way you’ll start the new year debt-free.

After all, the true spirit of Christmas is about time with loved ones, not how much money you spend. By following these tips, you can enjoy the festive season and greet the new year without financial stress.