Festive season savings: Simple tips to cut costs this Christmas

Between buying gifts, food shopping and holiday travel, the budget blowout from the festive season can feel more startling than an ill-timed exploding Christmas cracker.

We spoke with Silvia Pothoven, National Manager for Corporate Benefits at Gallagher – who partner with Qudos Bank to deliver MoneyFit, our staff financial wellbeing program – to get some smart and simple tips to keep holiday costs under control.

Plan ahead and stick to a budget

According to Silvia, the key to an affordable festive season is planning – namely, creating a budget, sticking to it and avoiding impulsive purchases.

“Start by listing everything you’re responsible for, along with a rough idea of how much it will cost,” Silvia says. “Create categories for food, drinks, travel and gifts. Create a list of people you need to buy presents for, which helps you avoid last-minute gifts. Having that dollar amount next to each name keeps it a bit more structured, then you can get creative with what the gift ends up being.”

Consider your travel costs and book in advance

Travel can be one of the biggest contributors to holiday expenses, especially during Australia’s peak holiday period or if your family is interstate or overseas. If festive travel is an inevitable part of your yearly routine, Silvia says timing can make a huge difference.

“It comes down to whether it’s affordable for you to do the holiday every year at what ends up being Australia’s peak period for travel,” she says. “If you know you go away every year, booking well in advance helps you secure your spot and make sure it’s budgeted for. Last-minute holidays are always more expensive, so set a budget early and stick to it.”

Spread out your Christmas purchases

One of the easiest ways to reduce stress (to both your wallet and your mindset) is to avoid doing everything in that final frantic week before Christmas. When it comes to festive shopping, Silvia recommends stocking up gradually.

Start buying non-perishable things – like tinned, bottled and frozen foods – a few weeks out, and keep an eye out for specials. “If you see it on sale and know you’ll need it, grab it,” she says. “There's always sales on the Christmas items – like serviettes and Christmas poppers – every second week. Even things like your drinks; if you can spread that out and buy it in the months leading up, you don't have that cost all in one hit.”

Share responsibilities and resources

Whether you’re hosting or attending festive events, Silvia believes everyone should expect to pitch in. “It’s important to know whether you’re catering or just hosting,” she says. “If you’re hosting, it will always cost you a little more, but ask others to contribute – maybe a sibling brings the drinks, or parents bring a salad. Share the love. It reduces both the workload and the expense.”

When it comes to gifts, Secret Santas can also keep costs under control, whether that’s in friendship groups, workplaces or families. “Especially in big families, Secret Santa works amazingly,” Silvia says. “There are apps nowadays that make it easy to set up. You set a limit and stick to it, and everyone still gets something meaningful.”

Don’t forget the tupperware

Food waste is common at Christmas, and it can end up being a major cost to both your back pocket and the environment. The ample amount of food at Christmas events means there’s often enough leftovers to feed several families, not just the hosts.

Silvia suggests encouraging guests to bring along containers to take leftover food home. “Takeaway containers are a must at Christmas, especially if you’ve shared the contributions,” she says. “Christmas tends to be a time of abundance, and you don't want to waste it.”

She adds that planning for leftovers can also mean savings with your grocery bill. “That week of Christmas, I will either not do a grocery shop or just buy the bare essentials – milk, bread and coffee. Everyone is out celebrating with family and loved ones, and there’s always plenty of food to go around.”