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8 tips for saving money during Christmas  

It’s the most wonderful time of the year and the most expensive. But there’s no need to let Christmas drain your savings. There are plenty of ways to cut costs without cutting out the joy.

’Tis the season for presents, parties and stretching the budget. For all the joy and merriment that the Christmas period brings, it can also put a real dent in your bottom line—and the financial hangover can last long into the new year. It’s estimated that Australians spent about $11.8 billion on Christmas presents in 2024, with even more money going towards food, holidays and decorations1.

It appears that for many of us, the challenge lies in figuring out how to be both festive and financially fit at the same time. “It’s absolutely possible,” says Alexis Teasdale, founder of The Festive Co. “With some forward planning and thinking outside the box, you can find ways to have a blast without the exorbitant price tag.” To follow, we’ve got top tips to help you strike the balance this summer.

1. Opt for smart menu swaps

For Christmas lunch, consider the investment ingredients. A roast chicken is cheaper than a leg of ham, or grab a frozen turkey instead of a fresh one. Then bulk out the meal with wallet-friendly options (baked potatoes are a crowd-pleaser) and serve fresh fruit for dessert.

2. Save on wrapping paper

“When it comes to wrapping, have the kids draw on brown kraft paper,” says Teasdale. “My kids’ favourite style is to glue on pompoms then use a marker to join them so they look like fairy lights.”

Founder of The Festive Co, Alexis Teasdale.

Budget-friendly tips

  • Don’t over-cater for crowds: a good rule is to plan your menu based on the number of guests, then use a simple “one main, two sides” formula (and resist the urge to add “just one more dish”).
  • Limit presents: introduce Secret Santa for adults or suggest a family gifting pact where you only buy one present per household or just presents for the kids.
  • Consider second-hand gifts: regifting gets a bad rap but it can be fun if you’re all on the same page. Start a new tradition where everyone brings a gently loved item they no longer need. It’s like Secret Santa with stories attached. 

3. Use nature to create a vibe 

Foraged pine cones and native florals offer a fresh and free alternative to overpriced table settings. “Greenery looks gorgeous laid down the middle of a table, in mismatched vases or even in sprigs on a napkin with some string tied around it,” says Teasdale.

4. Change the time of your Christmas gathering 

Food is a large part of festive celebrations but the highlight is actually coming together with loved ones. So why not mix it up this year and gather for brunch rather than lunch? You’ll find serving pancakes, fruit, fresh juice and coffee is much easier on the wallet than a seafood spreads.

5. Manage expectations on gifts

If you’re simplifying gifts, say so, says Niyoosha Reinehr, a financial adviser at AIA Financial Wellbeing. “Let people know you’re focusing more on connection and less on material things this year.” For adults, you could suggest a shared meal instead of presents and experience gifts are a great option for kids. “You may find others appreciate the suggestions and relief from gift-giving pressures.”

6. Try traditions that are more about togetherness 

Take a walk to see the festive lights or attend a local carols event. You can also have a Christmas movie night at home—all you need are your PJs, popcorn and a streaming service subscription. “Gingerbread-houses kits can be expensive so decorate biscuits instead,” says Teasdale. You’ll need arrowroot biscuits, caster sugar for the icing and silver balls for adornment.

Homemade gift ideas

We’ve all heard the saying “It’s the thought that counts” and the sentiment rings true: homemade, heartfelt gifts carry much more meaning than something bought at a store.

  • For food lovers: jars filled with infused oils or ingredients for making biscuits will be appreciated.
  • For new parents: make your own IOU cards for babysitting or drop off a home-cooked meal.
  • For little ones: colourful homemade playdough teamed with a couple of cookie cutters will be a hit.
  • For green thumbs: pot up herbs in painted terracotta pots or make plant cutting in glass jars for them to grow at home. 

7. Consider DIY tree decorations

A stylish tree has its merits but there’s something special about decorations you’ve created yourself. Maybe it’s a wreath made from eucalyptus leaves or pretty bows made from leftover ribbons. “A really cute DIY idea is pasta chains, which the kids can paint,” says Teasdale. “They look awesome.”

8. Create a Christmas budget 

Allocate money for the essentials (travel to visit family) and set a limit for other seasonal expenses (gifts, food, party outfits). You can set weekly, fortnightly or monthly budgets for a range of spending categories in the CommBank app when you search Money Plan. “Check how you’re tracking each week,” says Reinehr. And if you’ve exhausted your allocation for eating out, flex rather than go without. Perhaps dinner with friends becomes a walk and talk.

How to keep kids busy during the holidays

Go old-school with the young ones during the holidays. When screen time’s up, try these fun, low-tech ideas.

  • Pack a picnic: head to the park or beach and make the most of sunny days.
  • Board-game bonanza: rainy days call for a marathon - and the winner has a night off chores.
  • Scavenger hunt: challenge teens to set up an outdoor treasure trail or obstacle course for younger siblings.
  • Backyard camping: pitch a tent, toast marshmallows and sleep under the stars.
  • Frozen treasures: freeze small plastic toys in containers and hand out some spoons for a fun dig-and-discover game. 

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Published: 7 November 2025

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1Roy Morgan, Christmas comes early for retailers as Aussies buy sooner and spend more, 13 November 2024, https://www.roymorgan.com/findings/9736-ara-roy-morgan-media-release-christmas-spending-2024

An earlier version of this article was published in Brighter magazine.

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