Have yourself a budget little Christmas

Christmas is magical…until you check your bank balance. With gifts, food, travel and social plans all adding up, it’s no surprise that thousands of people search for ways to save money at Christmas every year.

The good news? You can still enjoy all the sparkle of the season without overspending - it just takes a little planning (and maybe resisting the supermarket middle aisle).

Here’s how to keep your Christmas festive, fun and financially on track.

1. Create a realistic Christmas budget

If you’re wondering how to budget for Christmas, start with the basics: list everything you’ll spend money on this year.

Your Christmas budget might include:

• Gifts and stocking fillers
• Food and drink
• Travel costs
• Decorations and wrapping
• School holidays and kids’ activities
• Festive days out
• Hosting expenses

Add it up, adjust it, and be honest about what works for you. A clear budget is the easiest way to manage Christmas costs.

2. Cut Christmas costs without cutting the fun

You don’t need a blockbuster budget to have a great Christmas. In fact, some of the best festive memories are inexpensive or completely free.

Try swapping a few pricier outings for budget-friendly alternatives:

• Christmas movie nights at home
• A walk to see local Christmas lights
• Baking together or decorating biscuits
• Board game nights
• Homemade mulled wine evenings

These swaps help you save money at Christmas while keeping things festive.

3. Save money on Christmas gifts

Gift-giving is wonderful - until it becomes a pressure point. Lots of people look for ways to save money on Christmas gifts, and these ideas can help:

• Suggest Secret Santa for groups
• Set a price limit
• Agree on a kids-only gifting approach
• Swap to experience gifts, like a film night or home-cooked dinner
• Add a couple of homemade or personalised presents

Most people appreciate clear expectations - and it makes gifting feel more enjoyable.

4. Reduce your Christmas food costs

The Christmas food shop is where budgets often disappear quickly.

Here’s how to lower your Christmas food costs:

• Plan meals in advance
• Mix own-brand and branded products
• Ask guests to bring a dish
• Avoid multiple “just popping in” shops
• Check what’s already in your cupboards or freezer

A few small changes can make a noticeable difference.

6. Avoid the January money dip

January can feel long - especially if you’ve spent more than planned in December. These tips can help keep things manageable:

• Keep a small “January buffer” in your budget
• Track your direct debits
• Spread costs across the month
• Avoid overdraft fees if possible
• Make a simple repayment plan for any Christmas credit use

A few small actions now can make a big difference after the holidays.

7. Borrowing for Christmas? Choose carefully

Many people use borrowing to help manage bigger seasonal expenses, like travel, appliances or unexpected home repairs.

If you’re considering how to spread the cost of Christmas, think about what works best for your monthly budget:

Credit cards - flexible, but interest can build quickly.
Buy Now, Pay Later - simple to use, but multiple instalments can be hard to track.
Personal loans - fixed terms, fixed monthly repayments, clear structure.

A personal loan from Novuna Personal Finance can help you spread larger festive purchases with predictable repayments and a set end date. It’s a structured option for people planning ahead.

(And of course: only borrow what fits within your financial plans.)

8. Start planning for Christmas 2026 now

This one always pays off.

In January, jot down:

• What you spent
• What felt worth it
• What you’d do differently next time
• How much you’d like to save monthly

Even a small regular amount can make next December feel far easier.

A Christmas that’s magical - and money-smart

Christmas doesn’t have to mean overspending. With smart planning, honest conversations and a realistic approach to your spending, you can enjoy the season in a way that feels fun and more manageable.

If you’re looking for ways to spread the cost of bigger festive purchases, you can apply for a Novuna Personal Finance personal loan online.

Plan ahead, enjoy the sparkle, and make this Christmas feel brilliantly festive - on your terms.