15 ways to save money this Christmas

Christmas is an expensive time of the year for many households and it can be easy to spend more than you have budgeted for.

However, there are lots of ways to have a cheaper Christmas while still having fun!    

1. Make a list and check it twice

Before you buy anything for the festive season, it’s a good idea to make a list of what you intend to buy, for whom, and how much you’re planning to spend. 

Try to make note of everyone you need to buy presents for and set a realistic budget for each person. Once you have an idea of what you’re going to buy everyone, add up the costs to see if your budget is feasible. If it’s not, revise your list. 

As Christmas gets closer, it’s normal to find yourself panic buying or falling trap to special offers. Creating a list and setting a budget will help you reduce stress, avoid impulse buying and unnecessarily overspending. 

Make sure you review the list regularly and update it to reflect changes and to keep track of what you’re actually spending. Having the list on your phone is a good idea as you can update it while you spend.

You should also factor in additional expenses for food and socialising as these can significantly increase how much you spend at Christmas. It’s important to ensure you have evenly spread your budget out to cover all costs.

2. Set realistic expectations

Christmas can often be a time of over indulgence and unrealistic expectations. 

Before the real Christmas rush starts in December, have a chat with close friends and family around what people are expecting in terms of gifts.

Does everyone in your family want a gift? Do you and your partner want to splurge on one another? For some, saving the money towards a house deposit or a nice family holiday together in summer might be a better idea than splashing out on gifts which people may not need.

But have the conversation early so that people have time to agree and before they may have bought presents for you already!  

3. Choose experiences carefully

Between Santa's grotto, light exhibitions, ice skating, Ferris wheel rides, Christmas markets, reindeer visits, and the Panto, the pressure to fork out big money for festive "experiences" is huge. And the influence of social media doesn't help.

Chat to your kids about what they would like to do the most and pick the things you can afford. Shopping centre Santa visits are often a fraction of the price of some of the more elaborate experiences. And if you have a very young child, they're unlikely to notice the difference!  

You can also find cheaper options at events managed by your local authority or the Office of Public Works. So check with your local council or community website for festive events. IKEA has a range of festive activities for free too.

And don't rule out home experiences. A family night in watching a Christmas movie or an evening spent baking Christmas treats is often just as fun and memorable for the family — and easier on the pocket.    

4. Be smart with your food shopping

Christmas is a time often associated with splashing out on the finest foods and eating copious amounts. However, it’s easy to get swept up in the festive excitement and purchase more food than you need, leading to high levels of food waste.

To avoid buying too much food, make a list of what you need and stick to it. Check your cupboards and freezers before going grocery shopping to determine what you already have, so you don’t end up with double. And try not buy Christmas treats too early as the temptation is there to dip into them, meaning you'll have to buy them again!

And think about who'll be visiting and what people actually like. Does anyone even eat mince pies? Do your parents drink Baileys? Does anyone in your family even like tubs of Roses anymore? If not, then leave them on the shelf.

And consider own-brand, cheaper alternatives. While you may be tempted by the fancy Christmas-themed packaging on food and advertising from premium brands, supermarket own-brands can taste just as good. 

5. Prepare your own dishes

It’s often the pre-prepared food that costs the most, such as prepped veg and canapés like pigs-in-blankets. While these ready-to-go foods can save effort and time, they’re costly.

Consider taking the time to make your own canapés at home and try to prepare as many dishes yourself as possible. With cheese boards, for example, you might find it cheaper to buy individual cheeses instead of buying a ready-made cheese board.

Some festive treats, such as mince pies and pudding, can be made in advance so you don't end up overwhelmed preparing everything on Christmas Day.

6. Utilise leftovers

Having leftovers after Christmas dinner is inevitable for many households, but it’s not necessarily a bad thing. If you plan ahead, leftovers from Christmas can mean that you could minimise cooking for a day or two. 

Try to figure out what you’ll do with the leftovers in advance so that you don’t end up buying food unnecessarily for St. Stephen's Day and wasting perfectly good food.

You can easily use leftovers to make a turkey and stuffing sandwich or use leftover turkey in a stir fry. Leftover ham can be used to make omelettes, quiches or pasta carbonara. There are plenty of easy recipes and ideas available at your fingertips online.

A word of caution though, make sure you store your leftovers correctly. Cover leftover meat and store it in the fridge within two hours of cooking and throw away any high-risk food that has been standing at room temperature for more than two hours. Once refrigerated, you should use leftovers within three days.

7. Avoid borrowing if possible

Borrowing at Christmas means you could be left with a nasty New Year financial hangover. So limit your borrowing or avoid it altogether. But sometimes this is easier said than done...

If you use a credit card, you can get up to 56 days' interest-free credit and will pay no interest if you pay off your balance in full and on time each month — so try do this. Otherwise paying by credit card can be very costly.

With some buy now pay later providers you'll get three months' interest free. But high fees and charges can kick in thereafter. If you think you won't be able to pay back your borrowing within three months, then a small personal loan will usually be a better option. But keep the loan term to a maximum of one year so that you're not still paying back this year's Christmas come next year.

However you choose to borrow, always avail of credit sensibly and avoid High Cost Credit Provides or "moneylenders" whose interest rates can be extortionate. 

If you think you'll need access to credit to help with your festive shopping, here are some ways to finance your spending.

8. Avail of discounts and deals where possible 

Whether you’re shopping online or in person, check and see what discounts are available before making any purchases. 

• When it comes to groceries, check for vouchers or try to redeem loyalty card points to save money on your Christmas shop.
• If purchasing alcohol, many supermarkets will offer discounts in the run-up to Christmas so keep an eye out.
• If you’re shopping online for Christmas presents, see if you can find any discount codes before completing your purchases. You can also add an extension to your browser, such as Honey, that will automatically scan the web for discount codes for the site you’re on.
• If you sign up for a newsletter you can often get an introductory 10% off, so look out for this too. You can always unsubscribe at a later date.
• If you're a fan of shopping on Amazon, check out Hagglezon. This is a meta search engine for Amazon in Europe. You simply search for the product you want to buy and Hagglezon tells you the Amazon site where it's cheapest to buy it. But be mindful of things like shipping costs and delivery times if buying outside of Amazon.ie. And if buying any electrical items, remember it'll likely come with an EU plug.  

9. Beware of delivery costs and customs charges

Shipping costs

There are many benefits to carrying out your present shopping online, but be mindful of the costs associated with getting your purchases delivered to your door.

Here are our tips for cutting down on shipping costs:

• If you start your Christmas shopping early, you may have the option to select a longer delivery time for cheaper or free. You should also try to buy multiple gifts from the same retailer where possible. Not only will this reduce your shipping costs, but it will also help reduce your carbon footprint. 
• Often if you spend over a certain amount, you can avail of free shipping. However, don’t unnecessarily spend more buying additional gifts just to reach this threshold. 
• If you know you’ll be ordering multiple times from Amazon over the Christmas period, consider signing up for Amazon Prime to get free shipping. You might be able to get a free trial and your subscription can be cancelled at any time.
• There’s also the option of click and collect. If you live near a shop branch of the retailer you’re ordering from, consider this option as it’s usually free. 

Customs and VAT

Another thing to be conscious of is that since Brexit VAT and — depending on the value — a customs duty will apply if you’re ordering from the UK. If unpaid, consumers may end up having their orders stopped at customs and held there until the charges are paid. 

When placing an order with a company based in the UK, check and see if VAT and customs have already been included at the checkout stage. If they haven’t yet been, try to calculate what they will be and factor this into your budget to avoid any unwanted surprise charges.

Since July 1st 2021, new VAT rules were introduced for goods arriving into Ireland from non-EU countries, meaning that all goods are subject to VAT at 23%, regardless of their value. If the purchase is valued at over €150, you’ll also be subject to customs duty.

10. Use up old gift vouchers

Under new rules brought in in 2019, there is now a five-year minimum expiry date on gift vouchers, but we’re all still guilty of forgetting about gift vouchers we have tucked away. Consider using these to do your Christmas shopping.

Be mindful that with One4All vouchers, there’s a monthly charge of €1.45 after 18 months and this will keep being deducted from the card each month until the balance runs out. A Perx reward card charges a €3 monthly fee after 12 months.

So, if you do have any vouchers lying around, dig them out and try to use them for your Christmas shopping where possible. Not only will this save you money, but it will also save the voucher from going to waste!

11. Do Kris Kindle or Secret Santa

If you have a lot of people to buy for in your family or friend group, consider doing Kris Kindle or Secret Santa instead. This is a great way to save money. 

Instead of buying presents for everyone, you just need to purchase one and everyone gets a gift, so it’s a win-win.

Elfster is a great app to use for this. It helps with the logistics of determining who wants to participate, and will draw names for you and communicate the names that were drawn, while identities remain secret. It also allows participants to create online wishlists so people know what to buy.  

12. Get creative with Christmas crafts 

You don’t need to spend a small fortune to give meaningful Christmas gifts. Not every present has to be expensive perfume or a Jo Malone gift set.

Instead of splashing out, consider making your own Christmas presents. It may sound like a laborious task, but handmade Christmas gifts are always appreciated. Even something as simple as filling a photo album with old pictures or creating a scrapbook can be more meaningful than a shop-bought gift. 

This can also extend to Christmas decorations. Making your own candles and decorations can be great fun for all the family, but also save you money. Similarly, consider making Christmas cards instead of buying them. 

And consider giving the gift of your time or knowledge. If you have friends or relatives with young kids, gift them a few hours of babysitting or offer to mind a friend's dog for a weekend. If you're musical, offer up a few hours of piano or guitar lessons. Handy around the house? Gift someone a DIY voucher for your services — everyone's always stuck for someone to help them a bit around the house.    

13. Save on gift wrapping 

We spend an absurd amount on wrapping paper, which always ends up in the bin. If you cut out additional extras, like bows, ribbons and gift tags, you can save significantly.

Before rushing out and buying new wrapping paper, have a root around the house and see if you can find any leftover wrapping paper and gift bags from previous years. If you find you don’t have enough, try to pick up cheap wrapping paper at discount shops or suss out what shops have a 3-for-2 offer on gift wrap. 

Alternatively, you could reuse brown paper from packages, bags from doing your Christmas shopping, or pick up a cheap roll of brown paper. As well as saving money, you’ll be doing your bit for the environment as this can be recycled. Simply add the finishing touch with some twine or a homemade gift tag. You know what they say, less is more!

Don’t forget that you can pick up wrapping paper in January sales when it’s heavily discounted and save it for the next year too. 

14. Reuse Christmas decorations 

As Christmas decorations are only up for a few weeks each year, they don’t experience a lot of wear and tear so try to reuse them each year. 

We all know the saying: buy cheap, buy twice. It can be tempting to buy cheap decorations and lights in the spur of the moment, but if you are going to purchase new decorations and lights, try to buy ones that are high quality. This means you won’t need to replace them each year, saving you money in the long run.

If you prefer a fake tree over a real tree, the same applies. It’s better to splash out on one that you’ll have for the next decade rather than buying one that’s cheap and won’t last. 

15. Lower your energy costs

This Christmas there will be no energy credits and some suppliers have also increased their electricity prices. A double whammy for households.

So people can expect some big bills over the coming weeks as winter bills start to arrive. As a result, lowering your energy costs should be on everyone’s radar, especially over Christmas.

Putting up twinkling Christmas lights is one seasonal tradition many don’t want to skip. By using LED lights and timer plugs, you can ensure your Christmas tree continues to sparkle without costing you an arm and a leg.

Keep an eye on reward schemes from supermarkets, as sometimes you can get a discount on your energy bill. For example, SSE Airtricity has a partnership with Tesco where you can use your Clubcard voucher(s) to knock money off your energy bills with a €10 voucher getting you €20 off your SSE Airtricity bill.

Electric Ireland has a partnership with SuperValu where you can knock €5 off your bill every two months just by shopping in SuperValu. 

Finally, consider switching energy supplier. This is the quickest and easiest way to save a significant amount on your energy bills. Head over to our energy comparison page to review the best deals from all energy suppliers nationwide and see how much you could save today.

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If you found this article helpful, consider checking out the following articles:

• If you think you’ll need to access credit to help with your festive shopping, here we’ve outlined 8 ways to finance your Christmas spending.
• If you’re shopping online this Christmas, discover how you can shop online safely and avoid scams here
• Take a look at our article on ways to save on your energy bills this Christmas.