12 ways to save money at Christmas

For many, finding ways to save money at Christmas is a top festive priority. It’s the most wonderful time of the year, however who wouldn’t benefit from saving a few pounds here or there? This year, the current cost of living crisis means every penny counts, so we’ve rounded up some top tips to help your money go further.

1. Go DIY!

Creating your own presents – such as hampers, candles, cards or wreaths – is great way to create truly unique personal gifts and they can be tailored to any budget. You can find real bargains in lower-priced stores or charity shops. If you’re a dab hand with a knitting needle why not even make someone their own scarf or jumper?

You could also recycle any paper from this year to use next year – or use old cards to make tags.

Top tip: Why not create your own festive potpourri out of cloves, orange peels and cinnamon sticks? Use an old glass jar and decorate for a classy, inexpensive gift.

2. Buy, sell or swap

As well as scouring charity shops for pre-loved bargains you can use as re-loved gifts, why not get a second-hand Christmas tree, and help a charity at the same time as helping the environment?

Also remember to check out online options, such as eBay, Gumtree or Facebook marketplace. You can find great items, often nearly new or still boxed, and in your immediate area too, making collection easy peasy.

Top tip: As well as looking for bargains to buy, why not have a clear-out and sell some of your unwanted things? That Churro maker still in its box from last year could be top of someone else’s wishlist!

3. Abandon your online basket for extra discount codes

Many of us shop around for voucher codes or special offer days for discounts on more expensive items, and if you take some time and hang around before you buy, you could make further savings.

No retailer wants to lose custom, and if you add gifts to an online basket and then leave without completing a purchase, you could get an email (or a few emails) offering a decent discount if you buy the item in your basket.

Top tip: You run the risk of products going out of stock, so be sure there’s enough available for you to chance it.

4. Use cashback sites

Using cashback sites such as Topcashback or Quidco can mean you’ll get money back on online purchases you make through them. You often spend more money at Christmas too so it’s worth looking to see if you can get money back through sites you were going to use anyway. It’s worth noting that this money usually takes a while to be tracked back through to you, so it might not benefit you in time for Christmas, but will be a welcome gift when it does arrive!

Top tip: Topcashback and Quidco have guarantees that they'll at least match other UK cashback sites if you find a higher rate on the same product or service elsewhere.

5. Price check your presents

It’s well worth shopping around online, using money-off codes and online offers to make your money go that bit further, whatever the time of year. But it can be time-consuming and stores such as John Lewis that used to offer a “price promise” no longer do, meaning you have to put in the legwork.

Shopify has put together a handy guide to the best comparison shopping engines that you can use to make sure you achieve the best price.

Top tip: If you’re a Facebook fan, community groups often share deals, best buys and voucher codes meaning you could pick up extra discounts/tips.

6. Always stick to the list

Organisation isn’t everyone’s forte, so start simple with a list. Write down a list of everyone you need to buy for, including an idea of the gift you’d like to get for them and then tick it off as and when. The earlier you do it, the more prepared you’ll be. And remember, only buy what you need to – does Uncle Derek really need another pair of boxers?

Top tip: If pen and paper isn’t your thing, download a Christmas list app or write it in your phone notes – simple and ensures it’s always with you, wherever you are!

7. Scour the budget supermarkets

We’re spoilt for choice with supermarkets, from Waitrose through to your more pocket-friendly stores like Aldi and Lidl. The middle “special” aisles of these supermarkets are the first places many of us check when looking for bargains. And it’s convenient, you could tick a few people off your list whilst you’re doing the weekly grocery shop!

Top tip: You can also shop for “special buys” online, and both Aldi and Lidl have apps that alert you each time new bargains are added.

8. Use rewards points wisely

Shoppers use supermarket rewards, like Nectar through Sainsbury’s or Morrison’s More, to build up points throughout the year and use them to help pay for Christmas dinner or presents.

But it’s not only supermarkets that offer reward points, so it’s worth checking out wherever you shop. Even small things like a free cup of coffee for every 5 you buy means you’re saving £3/£4 so this will add up. Boots Advantage points is a fab one to have as they do great gift sets come this time of year you could use your points on.

Top tip: Look out for double/extra point days for an extra boost! Some providers even have an app with alerts to let you know when they have offers.

9. Grow your own, and get crafty in the kitchen

If you’re a gardener, why not combine your passion for the outdoors with Christmas and consider making your own preserves, pickles or jams?

What’s more, it’s easy, and you can keep sealed jars in the cupboards for months. BBC Good Food has 100s of recipes for making jam.

There’s a tonne of other ways you can get creative with leftovers – how about turning orange halves into candles? Or making your own truffles to give in homemade boxes as gifts? Or you could turn empty jar lids into Christmas decorations – a great idea to get the whole family involved.

Top tip: Save your jars, as you’re giving them individually they don’t need to match, and they all look great with a fancy ribbon.

10. Save more with Secret Santa

To reduce your spend on Christmas presents, why not consider doing a Secret Santa instead? Whether it’s within your circle of friends, or your family, you could make savings by only purchasing a gift for one person.

And the good news is, there’s a host of free apps that can help you keep it really simple (and secret) – such as Elfster or Draw Names where you can also set up wishlists.

Top tip: Stick to the budget - it only works if everyone’s honest!

11. It’s never too early to plan for next year

No one wants to think about Christmas in January, but it may pay to start planning for next Christmas as early as possible. Here are some ways to get ahead of the game in the New Year.

• Take advantage of the Boxing Day/January sales - One of the cheapest ways to buy presents, cards and wrapping paper is to hit the sales early, and stock up well in advance.
• Spread the cost online - If convenience is your thing then a Christmas savings scheme could be for you. Companies like Park allow you to put away a certain amount each month, and you can then order their gift cards and vouchers - safe in the knowledge that gifts will be sorted come December.
• Buy presents “as and when” – Avoid last-minute panic buying and bargain hunt for gifts all year round. Just make sure you keep a note of what you’ve bought and store them somewhere you’ll remember!
• Discount shopping days – If you know exactly what you want to buy, it might be worth waiting for Black Friday or Cyber Monday deals, but the biggest deals often sell out quickly, so you’ll need to weigh up if it’s worth potentially missing out!

12. Be smart with your savings all year round

• Put small amounts away regularly – Put a little extra away each month, into a different account or an easy access account, and save that money in a “Christmas fund”. You won’t notice it as much as a lump-sum coming out in November and it might help take the pressure off.

Top tip: Many banks give you the option to round-up your change into a separate account - just like a piggy bank.

• Take the 1p Saving Challenge – Whilst saving regularly might be difficult for some, the 1p savings challenge is an easy and fun way to put your money away. You start on 1 January by saving 1p, and then add a penny for every day after, so on day 365, you’ll add £3.65 to your savings, meaning you’ve accumulated a whopping £667.95 by the end of the year.

Top tip: There are variations on this to suit your circumstances, including saving weekly or reversing it, so you start off by saving larger amounts then move to smaller ones.

*This article is an updated version of an article previously published in 2019, 19 ways to do Christmas on a budget.