5 cheap Christmas ideas to stretch your dollar

Estimated reading time
 3 min

In this article

• Prioritising your holiday spending
• Setting spending limits or getting low cost gifts
• Reusing what you currently have
• Hosting a festive potluck
• How to avoid the bottom dollar effect

Whether it’s hosting a Christmas lunch or buying gifts for your furry friend, there are a lot of costs to consider when it comes to the silly season.

But with a little creative thinking and planning, you can stretch your dollar and focus on the important things – spending time with your family and friends, eating delicious food, and enjoying your time off work. 

That’s why we’re sharing five simple tips to help you get ready for the festive season. Let’s dive in.

1. Prioritise holiday spending areas

There’s a lot to think about when Christmas comes to town – from where you’ll get the turkey to the backyard cricket teams. Write a list of what you need and start prioritising your spending. Essentials like food and gifts might have more money allocated to them than novelties like Rudolph-themed serviettes. This can ensure you’re not out of pocket or scrambling for money when the day comes.

  Hot tip:

Update your budget to factor in your Christmas expenses. If you don’t have one, then make a budget that considers how much you expect to spend and save money each month to ensure you can cover costs.

2. Set spending limits for everyone

It’s easy to get swept up in the Christmas spirit and spend more on gifts than intended. Try setting a spending limit on presents and stick to it. The amount might differ from person to person – you might spend more on your partner than your second cousin once removed – but it does mean you’re buying gifts for loved ones within your means.

  Hot tip:

Set a Christmas savings goal and actively work towards it so your ready when it’s gift-buying time. We’ve got a handy online savings calculator that’ll do the work for you (after you’ve popped in some info). 

3. Consider no or low price gift ideas

Every dollar counts in the lead-up to Christmas day. So why not get clever and think of no or low price gift ideas for your loved ones. By gifting your skills, cooking, or even a quirky op-shop find, you’re giving them something that’s meaningful for little (or zero) dollars.

  Hot tip:

You can also take advantage of gift with purchase offers or spend your loyalty points on exclusive items. For example, you might give a bonus gift voucher or spend your points on a fancy steak knife. 

4. Reuse where you can

There’s something special about bringing the family together for Christmas lunch or hosting a backyard barbecue for your friends. But the costs can quickly add up. When Christmas shopping on a budget, you can save money by reusing where you can, like left over wrapping from last year, reusing gift bags or repurposing last year’s decorations. It’s good for your wallet and the environment.

  Hot tip:

A cheap Christmas idea is to see what you can reuse or make with what you have at home. Chances are, you’ve got Christmas crackers from two years ago you can bust out and plenty of leftover gift ribbon to add pizzazz to your presents.

5. Host a Christmas potluck

Most people have a signature Christmas dish that they make each year – stuffed turkey, ricotta gnocchi, or even an iconic pavlova. So why not get everyone to share their favourite dishes and host a Christmas potluck? You’ll save on food costs because your nearest and dearest will bring a plate, and you get to have a taste of someone’s go-to festive dish.

  Hot tip:

Make sure everyone is on the same page when planning your potluck Christmas. Assign dishes and drinks to certain people or create an online menu that can be updated in real-time with input from everyone.

  Brain hack

If you’ve bought most of your gifts and are down to the last few dollars, but you still need to buy one more pressie, then you might feel dissatisfied with that final purchase. This is what we call the bottom dollar effect, where spending your remaining budget on something feels less satisfying because you’re down to the ‘bottom dollar’.

Here’s how to avoid it:

• Make a dedicated Christmas spending budget. This should capture everything, from the presents to the ham and everything in between.
• Spread out your spending across several weeks or months to avoid the stress of burning through your funds.
• Keep track of your expenses to help you stay aware of how much you’re spending as you shop.