Christmas may be a time for giving, celebrating and spending time with loved ones, but it can also be a stressful time when it comes to managing the budget. The added expense of gifts and food, the pressure of shopping, and the expectations of the season all make this an incredibly challenging time for many Kiwis. The good news is, you can still have a meaningful holiday season without breaking the bank! To help you get into the festive mood and to prepare for the silly season, here are 8 essential tips to help you stretch your holiday budget further.

1. Make every dollar count

With rising prices and higher interest rates, it’s more important than ever to get the most out of your Christmas spending. Instead of focusing on spending more, buying bigger, and splashing out, consider spending wisely, with intention and purpose. Look for ways to add value to your celebrations through thoughtful gift giving, creative decorations, or meaningful experiences. Focus on what’s important at this time of year: not how much you spend, but the joy you share with friends and family!

2. Write a list and stick to it

Impulse buying is one of the quickest ways to blow out your Christmas budget. To avoid overspending, make a list of the gifts and items you need to buy, and then stick to it. Start your Christmas shopping early to find the best deals and compare prices. Whether you’re shopping online or in-store, having a clear plan will help keep you on track and avoid unnecessary spending.

3. Focus on gifts that kids really need

Instead of buying piles of toys that inevitably end up in landfill, focus on gifts that kids actually need, like books, clothes, or school supplies. These practical gifts bring joy long after Christmas is over. Consider using the 5-gift rule: something they want, need, wear, read, and do, so you’re giving gifts that are both fun and functional.

4. Shop around for the best deals

With a little over 2 months to go, there’s no better time to get started with planning for the holiday season. Take time to compare prices online before heading out to shop. Use online comparison tools to easily see where to get the lowest price, and look out for emails and flyers with seasonal-saving deals. Whether it’s a big-ticket item or smaller stocking stuffers, a little research can help you find the best deals and save money. 

5. Get creative with DIY gifts

Christmas may be all about giving, but it doesn’t have to be about extravagant spending.

Homemade gifts are not only budget-friendly, but they’re also more personal. Here are some thoughtful ways to give: 

• Create personalised gift cards.
• Wrap gifts in fabric or homemade wrapping paper.
• Make homemade gifts like bookmarks or decorated mugs. 
• Bake biscuits or slices using ingredients you already have at home. 

Whether it’s baking cookies, crafting decorations, or making handmade cards, DIY gifts can add a special touch to Christmas. Plus, getting the kids involved in making gifts can be a fun way to spend time together and create lasting memories.

6. Give the gift of time

Spending quality time with loved ones can be the most meaningful gift of all. What’s more, it’s a thoughtful and inexpensive way to give. Offer your time or skills for things like babysitting, gardening, or washing the car. Or consider volunteering as a family or friendship group to help those who are struggling during the Christmas and holiday season. The holiday season is also a great time to take a digital detox and get offline for a bit.

7. Prioritise making memories

Sometimes the best gifts aren’t the things you buy. Consider starting a family tradition together to create lasting memories that are far more meaningful than any material gift. Here are some ideas:

• Plan a family walk around the neighbourhood to see the local Christmas lights.
• Invite family and friends to a community carol event.
• Bake festive treats together and share with neighbours and friends.
• Plan a family movie night complete with popcorn. 

8. Stick to your own plan

It’s easy to get caught up in the festive shopping frenzy and feel pressured to spend more than you can afford. Remember, your Christmas doesn’t have to look like anyone else’s. Consider doing a Secret Santa instead of buying individual gifts. Or combine money with other family members to buy one significant gift. Set a dollar limit for gifts and stick to your budget. Make choices that align with your values and financial goals.

A stress-free holiday without a strain on finances

Saving money and managing your finances is important all year-round. Practice being intentional with your money. Set clear financial goals and allocate money for different important occasions, like Christmas, birthdays or back-to-school expenses.

If you’re looking for ways to free up some extra cash in your budget, consider working with a Mortgage Express adviser. Get advice about options for debt consolidation, refinancing, and more, so you can enjoy a little extra financial breathing space this holiday season.