How to create an amazing Christmas without breaking the bank

Remember that New Year's resolution to start saving for Christmas early? Don’t worry if it slipped your mind. It's easy to get caught up in daily life and overlook long-term goals.

Thankfully, it’s not too late. With only a few months until Christmas, there's still plenty of time to start saving, make a plan, and deck the halls without breaking the bank. Liz Hunter, Commercial Director at MoneyExpert, has shared exactly what you can do now for a more affordable Christmas come December 2025:

Start saving now (no, it’s not too late) 

While it might feel too late to start saving in October, you can still make a big difference by spreading out expenses over the next three months.

Think about how much you’ll realistically spend this Christmas, factoring in the cost of food, gifts, events and any other expenses. Divide this total into three equal parts. Once you receive your pay later this month, set aside one-third of the budget in a savings account. 

Repeat this process on your October and November paydays. By following this plan, you can significantly reduce the financial stress of December and start saving much earlier.

Stock up on Christmas food now

Food prices often increase the closer it gets to Christmas, especially when it comes to festive items. Although it may seem early to stock up on Christmas food, buying now can save you money later.

Fresh produce won't last, but non-perishable items like biscuits, nuts, chocolates and alcohol can be purchased in advance – so if you spot good deals, grab them now. Remember to check the ‘reduced to clear’ shelves every time you shop, too. Many items, including meat joints and fish, can be frozen – which could significantly help to reduce the cost of your December food shopping.

By stocking up on what you can now, you'll save money, spread the cost and avoid the hectic Christmas shopping rush.

Sign up for cashback schemes

Imagine getting paid to do your Christmas shopping – sounds good, right? Well, with cashback websites and apps, you can earn money back on every Christmas present you buy.

These schemes work by tracking your online purchases and rewarding you with a percentage of your spending as cashback. For example, if you buy something for £100 and the provider offers 5% cashback, you’ll pocket £5 credit. Once you’ve earned enough, you can withdraw it as cash, gift cards or vouchers.

It's a win-win. Save money on your Christmas shopping and keep the savings going into the New Year and beyond. The two biggest platforms in the UK are Topcashback and Quidco.

Use discount codes

Using discount codes to stretch your Christmas shopping budget might seem like a simple tip, but it’s often overlooked. With a simple online search, you’ll be able to find a working discount/promo code for most online retailers, often saving you 5-20% off your purchase – but sometimes even more.

The easiest way to make the most of discount codes is to install a browser extension, such as Honey or Pouch, which will automatically apply working discount codes to your purchases at checkout. Do you shop on your phone? There are plenty of apps available, too.

Don’t wait for Black Friday

While many expect Black Friday to offer the best deals, data shows its reputation as the cheapest time for Christmas is often overstated.

In fact, a study by Which? Found that just one in 50 Black Friday deals are at their cheapest price on the day of the sales extravaganza. They also found that only 2% were not available at the same price or cheaper within six months either side of the date.

So, don't wait around to do your Christmas shopping. If you spot a good deal before Black Friday or Cyber Monday, grab it while you can. On the day itself, use a price comparison tool like PriceRunner to verify if the sale price is a real bargain.

Shop around for pre-loved gifts

In 2024, it’s estimated that over 16 million Britons bought Christmas presents on second-hand marketplaces, such as Vinted and eBay, according to Yodel. This means more people are believing that it's more acceptable than ever before to give second-hand gifts to a loved one, owing to both the rising cost of living and environmental concerns.

With this in mind, there’s plenty of time to raid your local charity shop and scour eBay, Vinted and Facebook Marketplace for unique second-hand gifts. 

From vintage jewellery and rare records to unique homeware and other one-of-a-kind finds, second-hand gifts offer a more thoughtful and sustainable approach to Christmas shopping. Not only do they save you money, but they also help the planet.

Set expectations with friends & family

If your budget simply doesn’t stretch to lavish gifts this Christmas, it’s perfectly okay to scale things back. Don't feel guilty about setting boundaries and expectations. The key is open communication.

Let your loved ones know soon that you're working with a tighter budget. Suggesting a specific spending limit can help everyone adjust their expectations. For larger groups, a Secret Santa can make things even easier and more affordable.

Ultimately, don't feel pressured to spend more than you can afford. Honesty and transparency will help create a more stress-free and enjoyable Christmas for everyone.

Borrow wisely, if you need to

Borrowing for Christmas should always be a last resort. First, consider cutting expenses or finding extra income before turning to debt.

But if you’re set on borrowing money for Christmas 2025, please borrow wisely. Be cautious about high-interest payday loans or other predatory lenders that become particularly aggressive with their marketing tactics in the run-up to Christmas.

Instead, consider a 0% credit card, which will allow you to borrow interest-free for a set period. Make sure you’ll be able to pay off the balance before the interest-free period runs out, though.

Buy now, pay later services can be a good option if you simply need to spread the cost of a few larger purchases. However, it's important to use them responsibly making sure you can afford the repayments and meet the deadlines set.