Christmas is one of the most exciting times of year for kids – and often one of the most stressful for parents’ wallets. From buying the gifts on every wish list to visiting Santa, planning a festive spread, and keeping everyone entertained over the holidays, the costs add up fast.
The good news is that a little planning goes a long way. Here’s our advice on budgeting for Christmas, with 14 practical tips to help you enjoy the season without the financial hangover in January.
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14 Budgeting for Christmas Tips
#1. Start Putting Money Away Now
It’s never too early to put a little money aside. It could be €5 one week and €20 the next when you have a bit more to spare – but it all adds up over the year.
Starting even a small savings habit today can ease the financial pressure when Christmas shopping season arrives. Take a look at our 52 week savings challenge for a simple plan that can leave you with extra cash to spend by the end of the year.
From our Parent Panel: “We put €100 aside each month to cover presents and Christmas food. We also keep an eye out all year for bargains.” – Kels, mum of three.
“I have a post office account and I give cash to my mother-in-law every week to lodge. She keeps the book and I withdraw it in December.” – Grainne, mum of three.
#2. Make a List
Grab a pen and paper, or start a list on your phone. Write down everything you think you’ll need for Christmas – food, clothes, gifts, decorations, wrapping paper, cards and so on. Don’t forget the small extras like batteries, stamps, travel costs if you’re visiting family, and any other bits that tend to sneak up on you.
Making your list as early as possible gives you time to prepare and save – and helps cut down on expensive last-minute shopping.
From our Parent Panel: “I have a fairly tight budget as a single mum, so I look out for reduced toys all year round and I’m always on the lookout for bargains. I start in the January sales, then everything goes into a press full of gifts, ready to go.” – “Roadrunner”, mum of one.
#3. Set a Budget – and Stick to It
Once you have your list, you can be realistic about your budget and get clear on where your spending needs to go. You may decide some costs need to be cut entirely, while others can be scaled back to something more affordable.
One area where many parents feel the pressure is taking the kids to see Santa at one of the big Christmas “experiences”. These can be a significant expense for just an hour or two of fun. The kids will enjoy it, of course – but is it worth the cost when there are plenty of budget-friendly and free places to see Santa?
#4. Research is Key
Using the shopping list you’ve prepared, it’s time to shop around. Use price comparison websites and apps alongside your usual retailers to compare prices before you buy. You might be surprised at the difference and could save yourself a good chunk of change.
Find out when stores or brands tend to run pre-Christmas sales, or when offers are likely to appear. Toy retailers, for example, often run “3 for 2” or percentage-off deals through the autumn, which can be a great money-saver if you already know what you’re buying.
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#5. Shop Online
Shopping online is a game-changer. You can do it from the comfort of your home once the kids are in bed, and you skip the queues entirely. Sign up to your favourite retailers’ newsletters, as they regularly send out discounts, sale previews and free shipping codes.
Online shopping also makes it easier to stick to your budget – there’s less opportunity for impulse buys, and you can track your running total as you go.
#6. Have a Clear Out – and Make Some Cash
If you have old toys, video games, books, clothes or bikes the kids have outgrown or no longer use, sell them. One family’s clutter is another family’s treasure.
Each November, many parents do a big clear-out of old toys and sell anything in good condition. Take some photos and list them on local selling pages, online marketplaces or similar, and you could raise a useful amount towards your Christmas budget.
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#7. Buy Second-Hand
Popular toy lines and character sets can carry a hefty price tag when bought new. Preloved selling sites and local marketplaces are often full of great condition items at a fraction of the price – and small kids and toddlers will rarely know the difference.
It’s always worth checking second-hand listings before committing to buying new, especially for bigger-ticket toys.
#8. Opt for Homemade
Consider using your own talents and skills for presents – these are often the best kind of gifts.
Homemade food gifts like jams, chutneys, fudge, cookies and cakes are always well received, and suitable even for a kitchen novice.
If you knit, sew, paint or craft, sharing your talents with family and friends can make a truly one-of-a-kind gift. And if you feel you don’t have something “worthy” to make, a gift from the heart can still mean donating your time – think babysitting, help in the garden, or lifts to appointments.
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#9. Tokens are Appreciated
If homemade isn’t your thing but you still want something to wrap up on the day, there are plenty of options that won’t break the bank. Grandparents and godparents would often love a craft made by the kids, or a favourite family photo printed and popped into a nice frame.
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#10. Encourage a Christmas Exchange
A big cost at Christmas can be buying gifts for extended family and friends. If everyone in your family buys for everyone else, consider a Secret Santa-style exchange with an agreed budget instead. It’s a great way to keep costs down, particularly in larger families where everyone feels obliged to buy for one another.
Some families apply a similar idea for the children too – pooling money into a shared pot and dividing it out for gifts, so kids receive fewer, higher-quality presents rather than lots of small ones that may not get much use. The same logic applies to adult gift exchanges: a thoughtful gift within an agreed budget often works out cheaper than several smaller “obligatory” gifts.
#11. Black Friday
Black Friday remains one of the bigger shopping events of the year and can be a good opportunity to get a deal on your Christmas list. Use your shopping list to look out for discount codes, free postage and special offers, whether buying online or in-store.
You can genuinely save money on Black Friday if you shop smart – just be careful not to get distracted by “deals” you wouldn’t otherwise have bought.
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#12. Use Vouchers and Reward Points
Gather up any vouchers you have and check the remaining balance before you shop, then use them in-store or online to cut costs.
Reward points can also come in handy, so it’s worth signing up to loyalty schemes at the retailers you shop with most. Some offer vouchers off future purchases, while others let you trade points for other benefits. If you’re shopping there anyway, it’s a welcome bonus. Many parents save points throughout the year specifically to put towards Christmas.
From our Parent Panel: “We have a budget account we pay into all year and then take it out on 1st December. Also, all my shopping points go towards Christmas.” – “Cliocon”, mum of two.
#13. Prioritise and Scale Back
Many of the things we buy for Christmas are the result of pressure rather than genuine need – so it’s worth reassessing your list regularly and asking what’s really necessary.
Do you need a turkey for tradition’s sake, or would a roast chicken do the job just as well? Do you need to buy a gift for your child’s teacher, when a handwritten note from your child might mean just as much?
Kids aren’t brand snobs, and young children won’t know the difference between a modest gift and an expensive one. Not every gift is created equal either – some items, like books, garden toys or a bike, are a good investment that will last for years. Others lose their appeal within days, take up space, and just sit there as a reminder of money spent.
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#14. Don’t Be Shy with Friends and Family
If family or friends ask what you or your kids would like, don’t be shy about answering honestly. Naming something specific from your list – or being upfront about what you actually need – helps everyone avoid unwanted duplicate gifts. If they’re stuck for ideas, suggest an experience or a membership the family can use all year, rather than another toy.
It all helps, and it will make Christmas that little bit easier on the budget.
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Frequently Asked Questions
How much should I budget for Christmas?
There’s no single “right” figure – it depends on your family size, traditions and priorities. The most useful approach is to list everything you typically spend on (gifts, food, travel, extras) and set a realistic total for each category, then track your spending against it as you go.
When should I start saving for Christmas?
The earlier the better. Many parents start putting small amounts aside from January or throughout the year, so the cost doesn’t land all at once in December. Even a modest weekly amount can build up to a meaningful sum by the time Christmas arrives.
What are the biggest costs at Christmas?
For most families, gifts, food and socialising (including days out and family visits) make up the bulk of Christmas spending. Extras like decorations, cards, wrapping paper and travel can also add up quickly if they’re not accounted for in advance.
How can I save money on Christmas presents?
Shopping second-hand, watching for sales and discount codes, setting a family gift exchange, and making homemade gifts are all practical ways to reduce present costs without reducing the thought behind them.
Is Black Friday a good time to buy Christmas gifts?
It can be, especially if you go in with a shopping list and a budget. The key is to compare prices in advance so you know a “deal” is genuinely good value, rather than being tempted into extra purchases you hadn’t planned.
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- 12 Money Saving Tips for Christmas You Can’t Afford To Miss
Save This for Later
Budgeting for Christmas works best when you can come back to your plan more than once. Save or bookmark this article now, and browse our other money-saving and Christmas planning ideas whenever you need a fresh tip.
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