Christmas money tips: 10 ways to save money, avoid debt and reduce financial stress

Christmas and the summer holidays are a time to relax, reconnect with family and friends and enjoy a well-earned break. But the festive season can also bring financial pressure. Gifts, food, travel, entertainment and school holiday expenses can quickly add up, particularly when household budgets are already under strain.

The good news is that enjoying Christmas and the summer holidays doesn’t have to mean spending more. With some simple planning and a few changes to the way you approach Christmas spending, you can enjoy the festive season without starting the new year with a debt hangover.

10 simple Christmas money tips to help you spend less

1. Set a realistic Christmas budget
   Work out what you can genuinely afford to spend and divide your budget between gifts, food, travel, entertainment and other expenses. Keep your spending list handy and check it before making purchases. A budget based on what you actually have, rather than what you hope to have, can help prevent overspending.
2. Rethink Christmas gifts
   You don’t need to spend a lot to show someone you care. Consider a Secret Santa, set a spending limit or agree to give fewer gifts. Time together can be far more valuable than an expensive present.
3. Plan your Christmas holiday food shopping
   Make a shopping list, check your pantry and fridge first, and avoid panic buying. Buying seasonal produce and smaller quantities can reduce costs and food waste, particularly if you regularly end up with large amounts of leftovers.
4. Avoid borrowing for Christmas
   Where possible, use savings rather than credit cards or Buy Now Pay Later (BNPL) to fund Christmas spending. BNPL and other forms of credit are still borrowing, and repayments in the new year can place additional pressure on an already tight household budget.
5. Create inexpensive Christmas traditions
   Christmas movies at home, board games, baking, craft activities, a family picnic or a visit to see Christmas lights can create great memories without a large price tag.
6. Look for free local activities
   Check your local council website for free or low-cost events, including concerts, festivals, workshops and family activities.
7. Make the most of summer
   Australia offers plenty of affordable ways to enjoy the holidays. Head to the beach, explore a walking track or bike rides, visit a free museum or gallery, take public transport somewhere new or discover a local park or national attraction.
8. Take your own food and drinks
   Packing lunch, snacks and drinks for a day out can save considerably compared with buying food along the way. A simple picnic at the beach can be both inexpensive and memorable.
9. Plan for the financial year ahead
   Once Christmas is over, review what you spent and create an annual household budget. Remember to allow for larger, less frequent expenses such as car registration, insurance, school costs and bills.
10. Start saving for next Christmas
    Putting aside a small amount regularly throughout the year can make next Christmas easier to manage and reduce the temptation to rely on credit.

If you’re struggling with debt or money problems

If Christmas spending has added to existing financial stress, or you’re worried about how you will manage your debts and bills, you don’t have to work it out alone.

Way Forward provides free debt help and support for people experiencing ongoing financial hardship.  We can help you understand your financial situation and explore practical options for managing your debts.

Visit the Way Forward website, use the free online budget planner or watch the short 2- and 3 minute explainer videos to learn more about how we help people to get back in control of their finances.

Getting help with debt in Australia doesn’t have to be complicated. Taking the first step can help you move towards greater financial wellbeing and start the new year with a clearer plan and less financial stress.