How to celebrate Christmas without going broke
Written by Glen James
Host of the Retire Right & money money money (formerly my millennial money) podcasts & author of The Quick-Start Guide to Investing.
Well the cost of living has been ever-present this year, and now we come to an even more expensive time of year—Christmas! Some of you might be ready and raring to go, others may be starting to sweat a bit 🥵 let’s take some time to get prepared.
1. Set a Christmas budget
Do yourself a favour: set a Christmas budget. I’m amazed by how many people don’t take the time to figure out how much Christmas is actually going to cost them! Think of Christmas as a recurring expense, just like bills, and start putting money aside throughout the year, but if you’re closer to Christmas now is the time to start putting some cash aside. To calculate your budget, jot down items like gifts, food, decorations, travel, and any social or charity commitments. Once you have a figure, earmark it separately to avoid overspending.
2. No gifts for adults 🫨
I know I might ruffle some feathers with this one but think about not giving adults gifts, and just focus on the kids and grandkids. Instead of exchanging gifts, focus on quality time. If there are children around, reserve gifts for them and bring a bit of Santa magic to the holiday. For others, write a thoughtful note about what you appreciate about them. If you’re thinking of gifting to others’ kids, check with their parents first to see if they’d prefer a different kind of gift or even a contribution toward an experience they have planned. This simple step can reduce clutter and shift the emphasis to connection.
3. Share your skills to create meaningful gifts
Tap into your hobbies to make unique, thoughtful gifts for loved ones. Think about something you enjoy creating, whether it’s baked treats, barbeque meat rubs, homemade jam, spice blends, preserved foods from your garden, even woodwork or a crafted item. These personal creations are often far more appreciated than store-bought items and can also save you money while letting you share your talents.
4. Buy second-hand and local
Opting for second-hand or locally made gifts can help keep costs down while reducing waste. Quality pre-loved items, like books or vintage décor, can be a meaningful, budget-friendly choice. Additionally, consider supporting local artisans for one-of-a-kind gifts, whether it’s a custom ornament, handcrafted baked goods, or artwork. Supporting local businesses adds a personal touch to your gift-giving and keeps money circulating within the community.
5. Consider layby instead of credit
For those who prefer to plan early without overspending, layby can be a great alternative to credit or buy-now-pay-later schemes. Major stores like Target, Big W, and David Jones offer layby options, so you can spread out payments (sometimes with a small deposit or fee, so check this). Layby lets you secure gifts early, budget consistently, and stay out of debt. Just be sure to check any fees or specific terms when you set up layby to avoid surprises down the road.
6. Make gatherings a shared effort
Christmas meals can be costly and time-consuming for one person to manage, so why not make it a communal affair? Encourage guests to bring a dish to share—perhaps a favourite family recipe or something festive. This way, each person contributes to the holiday meal, spreading both the cost and preparation while adding a rich mix of flavours and traditions to the table.
7. Maximise free holiday experiences
Holiday cheer doesn’t have to be expensive. Time to hit the streets! Local community events offer free entertainment like Christmas carols in the park, streetlight displays, and public tree lighting ceremonies. Keep an eye on local council websites, Facebook groups, and community pages for festive events to join. For a more intimate touch, get your neighbours around for a casual outdoor celebration with a BBQ or potluck—it’s a chance to connect and bring the season’s warmth closer to home.
My go-to gift is books, whether for kids or adults! Myself and my team have also written a number of books over the years covering topics like money, career, property and my most recent book, the quick start guide to investing. Grab a copy for your family or friends!
