Five ways to have yourself a budget-friendly Christmas
1 December 2025
It’s December, which means the Christmas countdown has officially begun. Sadly, the most wonderful time of the year can also be one of the most expensive — because Christmas costs quickly add up.
As an early Christmas gift, our financial counsellors from the Salvos Moneycare team have put together five fantastic tips for a more affordable (but no less joyful) Christmas.
Tip one: Save on decorations with secondhand finds and DIY
Look for affordable decorations and ornaments at discount stores and op shops — if you handle and store them with care, there’s no reason why they can’t last for many Christmases.
If you have kids, encourage them to make Christmas decorations. Not only will it help you save money on Christmas, but it’ll be so rewarding for them to see their creations proudly displayed around the house.
Tip two: Create joyful (and free) Christmas moments for kids
Use flour or baby powder to leave "Santa’s footprints” from the front door to the tree (or from the chimney, if you have one). There’s even the old classic of encouraging the kids to put out milk and cookies for Santa, plus a carrot for the reindeer.
Even if you can’t give your children as many presents as you had hoped, these simple acts can create magical Christmas memories for them.
Tip three: Save with a secret gift exchange
Organise a secret gift exchange among your family and friends. This means that instead of feeling obligated to buy presents for everyone, each participant only needs to buy one for the person they’re randomly assigned to. A secret gift exchange not only means people spend less, it’s also very fun!
Also, don’t feel obligated to overspend on a gift. Remember that the most meaningful presents are usually the ones that are the most personal, not necessarily the most expensive.
Tip four: Spend with a plan
Set a limit on how much you spend on the various Christmas expenses — gifts, food, Christmas cards, the tree, and so on. Do your best not to exceed those limits. Remember that the more you spend planning, the less you’ll spend spending!
If you need some help planning your spending to save money on Christmas, download our specially made Christmas Spending Plan. It also allows you to prioritise the spending that is most important to you.
Tip five: Keep debt from dimming your Christmas
Probably the best method to avoid Christmas debt is paying for Christmas with cash that you have. This means not using buy now pay later, credit cards, or small loans. While these options may seem convenient and painless, they often come with fees and high interest rates that can end up costing you a whole lot more. Staying within your means helps you enjoy the season with peace of mind, knowing that the new year won’t bring unwanted bills along with it.
The Salvos are here to help
If you’re worried about covering the costs of Christmas, there are several ways the Salvos can support you. For help with food and gifts, give us a call on 1300 371 288. Some of our centres also offer free Christmas lunches. There’s no judgement, just Christmas joy!
We hope these tips help you keep your Christmas debt-free, joyful and on budget. Remember, the true spirit of Christmas comes from giving and sharing, not from your wallet!
Our Moneycare financial counsellors are also available to help you manage your finances for Christmas, and beyond. You can get in touch with us via live chat on the Moneycare website or call 1800 722 363.