How to do Christmas on a budget: money saving tips

Christmas can feel overwhelming when money’s tight, but a clear budget can help you stay in control. Start by deciding how much you can afford to spend after all your essentials are paid, such as rent, food and bills. This’ll help you stick to what you can genuinely afford without feeling overwhelmed and pressured to spend more.

If you know you’re going to be doing some online shopping this Christmas, you might benefit from using cashback websites which reward you for spending at certain companies. You could then use this extra money to add to your savings.

There’s a certain pressure to follow the crowds at Christmas and join in with things like paying a visit to see Santa or making an expensive Christmas Eve box. But you can still make your kids’ Christmas magical without spending lots of money. 

Plenty of restaurants, cafés and pubs offer deals where kids can eat for free or cheap. These deals can make festive days out far more affordable. 

Buying for everyone can quickly become expensive. A secret Santa means that you only have to buy for one person. The best part? You can still set a price limit to make it affordable and fair. Why not try it with family or friends?

It’s tempting to lean on credit cards, buy-now-pay-later schemes or overdrafts to ​‘make Christmas happen,’ but this often leads to a stressful January. Christmas should never come at the cost of essential bills or your peace of mind.

Whether hosting a large gathering or having a quiet Christmas, you can create a cosy, festive atmosphere at home without breaking the bank. Many of us focus our Christmas budgets on food, presents, and January expenses – and rightly so – but making your home feel festive doesn’t have to cost a fortune.

The great part about Christmas is the community getting together to have fun and support each other. Why not see if your local church or community groups have anything on? Lots of churches run free family fun days and festive cafés to make your Christmas extra lovely.

We all know the dreaded Christmas food shop, where your trolley is full and you’re queueing up the aisles to pay. It can get expensive (and chaotic!) fast. But there are lots of ways to save money and stress when at the supermarket, from loyalty schemes to planning your meals for the week in advance.

There’s a lot of pressure to spend at this time of year, but you don’t have to hide how things really are. If you’re on a tight budget or want to cut down on spending on gifts, being open and honest with friends and family can ease the pressure of Christmas and set realistic expectations.

It can be hard to find things to do in winter, especially after the organised (or disorganised!) fun of the Christmas holidays and New Year. But that doesn’t mean you can’t have any fun. We’ve got lots of ideas for fun, free winter activities for kids and families to keep you entertained without having to spend.

When you think back to your childhood, what was the most memorable part of your family Christmas? Most people will remember their family traditions and small moments that made the festive season special. Christmas can bring with it a huge amount of pressure, especially for those looking after children, but remember that life in all its fullness is about finding joy, peace and hope in the everyday gifts that we have.

Christmas doesn’t have to be expensive to be special. Simple traditions, thoughtful moments and spending only what you can afford can make the season feel more joyful. 

If you’re finding thinking difficult this year, reach out to CAP for support. Our free, confidential debt help can get you the right advice you need to go into 2026 feeling a sense of peace. Simply pop your postcode into the box below to find help near you.