Five ways to cut the cost of Christmas - Times Money Mentor (2024)

The cost of living crisis means that Christmas may have to look a little different for many people this year. The cost can quickly spiral as we stock up on presents, decorations and food.

The good news, though, is that a budget Christmas can still be a special one. You just need to plan, shop around for the best Christmas deals. And, if you can, be a bit creative and use your imagination.

In this article, we explain:

• Is it better to save up in advance?
• Where can you get a cheap Christmas tree?
• How can you work out a Christmas budget?
• Where can I find the best festive deals?
• How can I break the mould this Christmas?

1. Save for Christmas in advance

You don’t need us to tell you that the best way to pay for Christmas is to save in advance.

But if you haven’t been able to squirrel money away each month or you don’t want to blow your hard-earned savings on Christmas, there are plenty of ways to raise a bit of extra cash to see you through.

You could try:

• Selling any possessions you no longer need – from clothes to tech and long-forgotten toys
• Switching your current account for one offering cashback, and putting those rewards towards the festivities
• Getting a Christmas job. Join the hordes and look for some seasonal retail work on the side
• Letting out parking space on your drive through websites such as JustPark or Park On My Drive
• Finding more imaginative ways to earn; many pet owners will appreciate pet sitting or dog-walking services over Christmas. You could also try babysitting, or tutoring if you have specialist knowledge
• Cancelling subscriptions for services you don’t use, or are willing to forgo for a month or two. How many streaming services do you really need?
• Scouring your wallet for unused gift cards and taking advantage of all those loyalty cards. Could your Boots Advantage, Tesco Clubcard or Nectar points pay for a gift or two?

While you are thinking about Christmas spending, you could also get the new year off to the best possible start by checking out the best savings accounts and setting up a monthly direct debit.

A direct debit is an easy way to save, for example, for Christmas 2022. Once you have set it up, you can forget about it for the rest of the year.

Find out more: 20 simple ways to save money

2. Chop down the Christmas tree price

A real tree, decorated from top to toe, makes Christmas for many families.

However, labour supply problems and post Brexit-regulations mean providers are warning that there could be a shortage this year and Christmas tree prices could rise by as much as 10%.

This means 2021 could be the year finally to buy an artificial tree. It might not cut the cost of this Christmas, but it could at least mean you won’t need to shell out in future years.

Due to the problems with real trees, demand for artificial ones is likely to be higher than normal, so get in early and shop around for the best tree deals.

You could also consider an alternative home-made Christmas tree if you have good crafting skills. Check out Pinterest for ideas using everything from corks to balls of wool.

If you really can’t imagine Christmas without the aroma of a real tree, it’s worth visiting a garden centre and asking about varieties that you can plant in the garden and reuse each year.

That way you can save money and enjoy your tree all year round.

3. Work out your Christmas budget

To keep your spending under control, it’s important to write a Christmas budget. It’s easily done with a spreadsheet and can be a good way to limit unnecessary outlays and save money.

The key to making it work is being realistic about how much you can afford and including all your Christmas expenses.

That means everything from gifts and food through to wrapping paper, cards, contributions to teachers’ collections, or obligatory office lunches and, of course, nights out.

4. Seek out the best Christmas deals

You have to be savvy to get the best Christmas gift deals.

Don’t take retailers’ offers at face value; do your own research and shop around to make sure you really are getting the best price for the gifts you’re after.

Find out more: ‘How I saved a third of my salary’

Look for Black Friday Christmas gift bargains

Black Friday and its online counterpart Cyber Monday have traditionally kicked off the festive shopping season in the US at the end of November, hot on the heels of Thanksgiving.

However, the concept is also now firmly entrenched in the UK retail calendar, with high-street and online stores offering big Black Friday and Cyber Monday discounts.

Black Friday can be a great way to save money on Christmas gifts. But it’s important to remember that, however big the discount, these deals are only bargains if you were going to buy them anyway.

For bigger expenses, it’s also a good idea to monitor prices over time – so you can see if Black Friday or Cyber Monday deals offer genuine savings.

Websites such as PriceSpy can be helpful in showing you the price history of specific items.

Find out more: Nine smart shopping tips for the Black Friday sale

Beat the big brands

You can often find cheaper versions of big-brand products for a fraction of the price.

Take perfume as an example – high-street retailers including Next, Marks & Spencer, Zara and Primark all offer their own take on famous perfumes, which are often indistinguishable from designer scents.

You can sometimes bag bargains in charity shops too – particularly if you head to more affluent areas. Keep your eye out for branded shoes and clothes still with their tags.

Lots of brands also sell off lots of clearance stock from previous seasons at online outlets or via eBay stores at bargain prices, so check those out before heading to the shops.

5. Break the mould

Of course you don’t have to celebrate Christmas the way everyone else does – or the way the media says you should.

Here are a just a few ways in which we reckon you could save money by breaking the mould:

• Who says you need to eat turkey? Your guests might even prefer a chicken
• If you are getting an ever-growing list of people to buy for, why not agree to do a Secret Santa among friends or the adults in your family?
• Save on wrapping and use brown paper instead. Stamps, stickers, ribbons and tags can quickly spruce it up
• Do you really need more Christmas decorations this year? If you do, perhaps you could make them instead
• Instead of cash-based gift vouchers for retailers, why not offer the gift of your time? New parents will lap up an offer for babysitting, or, if you are green fingered, you could offer an afternoon tidying up a friend’s garden