11 ways to boost your budget this Christmas
Discover expert tips to save money on presents, food and festive essentials
With a background in financial journalism across national titles, Ruby loves helping people take control of their money and specialises in pensions, tax, banking and benefits.
Christmas is fast approaching, and while the festive season is a wonderful time for families to come together, the extra costs can make it stressful.
From presents and decorations to parties and food, costs can quickly add up if you aren't careful.
To help, we've rounded up 11 money-saving tips from Which? experts to help you cut festive costs – both this year and for years to come – plus ways to give your finances a welcome boost ahead of the celebrations.
Boosting your budget before Christmas
December tends to be a pretty expensive month, but with two months to go before the big day, you still have time to set aside some cash for Christmas.
The best way to do this is to look at your day-to-day spending and make small adjustments where you can. This includes cutting down on takeaway coffees, lunches out and food deliveries.
Swapping out more expensive brands in your weekly shop or shopping at a cheaper supermarket can also help your budget. See how much you could save by checking our monthly cheapest supermarket analysis.
Reviewing your recurring bills could also boost your bank balance. For example, if you have a monthly subscription you don't use, cancel it and put that money into your Christmas pot.
Another tactic is introducing 'no-spend' days each week. Avoiding just £5 of incidental spending twice a week over eight weeks could save you £80.
- Find out more: best savings accounts 2026.
11 ways to save money at Christmas
Saving money in one area boosts your overall budget, freeing up cash for other festive expenses. Here are a few tips from our Which? experts on how to do this, both for this year and beyond:
1. 'Plan gifts throughout the year'
I keep a list of present ideas for different people in my phone's notes app. Then, if I see any of them reduced in price before Christmas, I can buy them and tick them off.
Buying Christmas gifts early might seem eager, but a big discount is always worth it. Spreading the cost over several months keeps your December expenses manageable and stops bills from piling up all at once. Just track what you've bought and store the presents safely so you don't forget them.
- Find out more: best Christmas gifts 2026 – the top hits from Which?
2. 'Opt for budget crackers'
Don't bother buying expensive crackers. The gifts are always disappointing, and everyone fights over the screwdriver set. So, buy cheaper ones. Or, if you can be bothered, add some better and cheaper tiny gifts inside them yourself.
Christmas crackers are a quintessentially British staple, and the table simply wouldn't feel complete without them at dinner. However. some luxury crackers could cost more than £50.
Since most people really just want the paper hat and the joke, it may be worth opting for a cheaper set, enjoying the harmless tat and saving your money for the actual feast.
'3. Take advantage of loyalty points'
I managed to accumulate enough Boots Advantage points to buy presents for my mum and two mothers-in-law a couple of years ago – just by collecting throughout the year. The key thing about Boots points is that you have to manually add offers to your loyalty card before you buy, so make sure you do that to maximise your savings. And don't forget the Boots recycling scheme – you can earn extra points for recycling things such as used pill packets and empty make-up containers. Plus, it's good for the planet.
Most high street chains offer loyalty schemes that let you earn points as you spend, which you can then swap for vouchers or discounts.
In the run-up to the holidays, look for retailer point-boosting promotions or exclusive app offers that give you bonus points on items you were already planning to buy. Saving these points specifically for your main Christmas food shop or high-ticket presents can ease financial pressure.
- Find out more: how to earn and maximise your loyalty points before Christmas.
4. 'Stick to a Christmas food shop plan'
I book a food shopping delivery slot when they're released, and make a list for the 'big' food shop to arrive on 22 or 23 December. It helps me avoid buying silly things I spot while in the supermarket, with the pressure of stress, blaring Christmas music and 'deals'.
Major supermarkets announce their festive food ranges weeks before Christmas, giving you plenty of time to plan your menu and compare prices before you shop. This can help you stick to your budget and avoid impulse purchases.
We've highlighted when major UK supermarkets open their Christmas delivery slots for this year. You'll need to be quick to secure a slot, but most supermarkets let you amend your order in the weeks leading up to delivery.
- Find out more: best Christmas gifts for people who have everything.
5. 'Take on a savings challenge'
'Since January, I've been using my Monzo 'savings challenge' feature. From 1 January, it lets you set money aside gradually, increasing by 1p a day. I feel nervous about setting up a standing order from my main bank account for these kinds of things, but since this is an automated feature, I don't have to think about it much. Plus, the gamification of the savings challenge definitely helps. I use that money just for important occasions, including presents for birthdays, Christmas and my partner's birthday, which is around the same time of the year.'
A small savings challenge can help you set cash aside for festive expenses. For example, putting away £1 every day from 14 October to Christmas Eve would give you £72.
Alternatively, a shorter 1p challenge over the same period, saving 1p on day one, 2p on day two and so on, finishing with 72p on Christmas Eve, would give you a total pot of £26.28.
If you want to think ahead for next year, taking on a savings challenge throughout 2027 could see you stash away more than £660 by the end of the year using the full 365-day 1p challenge – or more than £1,000 by setting aside just £3 a day.
- Find out more: 6 things I'd never do as a savings expert.
6. 'Choose handmade gifts and cards'
Make your own cards if you enjoy that kind of thing – not only are they cheaper, but they can be fun to make, often mean more to people and can be far more personal.
If you’re feeling crafty, handmade gifts are a great way to save money while keeping things thoughtful. Simple ideas such as homemade chocolates, a personalised photo album or DIY bath salts won't break the bank, but still feel special. You can also think a little outside the box, such as making a custom presentation box to go with those homemade treats.
If you're looking for gifts for grandparents, get the kids involved. A painted plant pot with their favourite flower or homemade candles in their favourite scents make great gifts and keep them entertained for a few hours. Plus, you can then get away with things looking a bit rustic.
- Find out more: best Christmas gifts for kids 2026 – the non-parent's guide.
7. 'Reduce and reuse'
I save tissue paper from purchases and deliveries throughout the year, and I collect old scraps of ribbon to use for wrapping. This saves money and keeps extra waste out of landfill.
Before buying anything new this year, take stock of the decorations, wrapping paper, and cards you already have, and consider what you can reuse. Reusing last year's leftovers or repurposing things around the house saves you from buying again. Old Christmas cards can be handy – you can cut them up and use them as gift tags this year.
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Compare and choose8. 'Set up a secret Santa'
If you have a lot of people to buy for, you can set up a Secret Santa for a particular subsection of the adult members of your family. That way, everyone just buys one gift that's nice. If you want to save even more, set a strict price limit.
Secret Santa is a simple way to cut costs and remove the pressure of finding a gift idea for multiple people. You can use free online generators to draw names if you can't be in the same room before Christmas.
To keep things budget-friendly and fun, you can add a further creative twist, such as 'charity shop finds-only', handmade presents or edible gifts. Alternatively, try a White Elephant or Yankee Swap, where everyone brings one wrapped gift to a central pile, then takes turns picking a present or swapping with someone else.
- Find out more: best Secret Santa gifts.
9. 'Earn cashback when you can'
I'm an avid TopCashback user for every purchase I make throughout the year. Each purchase gets you back a few pennies – which doesn't look like much, but boy, does it add up. It's also really worth it when you have to buy a larger appliance or expensive piece of furniture – I got £40 in cashback when I bought my sofa a few years ago.
Cashback sites such as Quidco and TopCashback are free to join and fairly simple to use. You sign up, click through the site's links to make your usual purchases, and earn a percentage back. The site gets paid a commission for sending traffic to the retailer, and it shares a portion of that with you.
Cashback rates vary by retailer, and the highest payouts are often reserved for certain customers, such as new account holders or those who spend over a specific amount. However, you should never let cashback dictate where you shop. Focus on the best overall deal, not just the highest cashback offer.
Cashback credit cards are another way to earn money back on your spending, including Christmas purchases. These give you a percentage of what you spend back as cash, although some charge an annual fee. Only consider them if you can pay your balance in full every month, as interest charges could quickly wipe out any rewards.
- Find out more: best cashback credit cards.
10. 'Scout out online codes'
Install a browser add-on or extension that scans the internet for valid promo codes before you check out. I use Honey, which tests them and automatically applies any that work. It's probably saved me at least £50 over the years.
Before checking out when shopping online, get into the habit of searching for active discount codes. Retailers regularly offer first-time customer discounts, free delivery or money off when you hit a minimum spend.
You can search for these codes online, sign up for a newsletter/create an account with the retailer to access them, or add a browser extension that automatically applies them.
However, browser extensions monitor your browsing to find deals, so these companies can also collect data on your overall shopping habits. Alongside this, browser extensions often override standard affiliate or referral links at checkout. So, if you clicked a link to support a specific creator, charity or smaller blog, the extension may swap in its own affiliate ID to claim the commission.
- Find out more: how to get the best price when shopping online.
11. 'Don't buy unnecessary gifts'
My family keeps a shared document year-round where we drop links to things we actually want for Christmas. It gives everyone a solid list to go off and stops us from buying random stuff just for the sake of it, so we all end up getting things we really want or need.
Many of us can admit to buying something for someone just because it's Christmas. Think an extra pair of socks, a silly T-shirt or maybe a bath set – forgetting the person doesn't actually own a bath. Making a gift plan and sticking to it can really help you stay on budget.
For older children and adults, consider slipping an IOU into their stocking that promises them something special in the sales. You could save yourself a small fortune by holding out from buying the game console until the January sales.
