How to start saving for Christmas

Once the festive season is over many of us are left facing large credit card or bank bills. We want to provide that perfect Christmas feeling regardless of the cost. You may be thinking that this is to year to change that but don’t know quite where to start… If you’re wondering how to start saving for Christmas then this is the post for you!

This year, by following these steps you can reduce the unexpected bills while still having just as much fun. Saving for Christmas doesn’t have to be daunting!

Despite taking on extra hours your December wages probably aren’t going to cover the cost of everything you want. This can lead to people spending on credit cards or applying for loans.

Are you ready to start saving for Christmas now?

By starting saving for Christmas early, you are able to spread the cost and relieve the pressure on yourself. You can do this by putting a bit of money into a savings pot every month or joining a savings club. Skint Dad has a really good post here on different savings clubs.

The same methods won’t work for everyone but hopefully you’ll be able to find something here to help!

1. Set a budget

The average spend, according to the Money Advice Service, is £500 per household. This includes food, presents, travel, decorations and much more.

The first step to saving for Christmas is to work out how much you actually want to spend. Look at what you’ve spent in the past and use this as a point of reference. If you normally spend £2000+ there’s no point setting a budget of £500 because its just not realistic!

Write down a list of everything that you will be spending money on.

  • Who you need to get presents for
  • A food shopping list
  • Parties or events that you know of
  • Decorations and other bits

2. Work out how much you need to save each month

Once you have worked out your overall budget divide this by the number of months that you have left. If you want, miss out December and then any extra you earn in December will be a bonus.

For example

You have budgeted £1500 for your total spend and it is August. 5 months till Christmas so you will need to save £300 a month.

3. Decide where you are going to save your money

Are you going to create a separate Christmas savings account with your bank? If so pick one with a good interest rate and you’ll save even more! Some accounts pay interest on a monthly basis so you can really see the amount ramping up.

Maybe you just want to keep a spare change tub at home or a standard savings tub. I use a smash-able money box so that I’m not tempted to dip into it throughout the year

If you’re looking for a money box, places such as Home Bargains or B&M do them for under £5. I love these shops and find they are absolutely great for getting whatever you’re after at a cheaper price.

4. Start saving for Christmas now and do your shopping early

Picking up crackers and wrapping paper in the January sales or buying a present a month, the same idea works.

If you buy things early and across the year you are spreading the cost. This will relieve the pressure and expense of having to buy it all in a rush, at premium prices.

By buying things in the sales you can save an absolute fortune. The item will often be cheaper simply because it is out of season or ‘old stock.’ Gift sets are a perfect example of this!

If you do buy things in the sales and throughout the year I would keep track of this so that you don’t forget what you’ve already purchased. Otherwise you run the risk of buying things twice or forgetting it so you end up buying more. This is especially the case for kids as the stigma that they all have to have an equal number of presents or money spent on them is very common!

Enjoy the time spent with family and friends and remember, memories last much longer than any item.

Related posts:

A Christmas Bucket List for the Whole Family

Stocking Filler Ideas under £10 Each

A Festive Christmas Giveaway


  1. I can’t believe it’s almost this time of year already! Great tips for saving, it’s so important to minimise stress! X

    Erin // Everything Erin

    1. Author

      This year is just going so quick! Thank you, it definitely is, gives more time to enjoy the little time we get nowadays x

  2. Good ideas. I have a set amount that comes out of each check into a Christmas fund. They send us our check on November 1st. Since it comes directly out of my paycheck. I don’t. Is it.

    1. Author

      That’s a really good idea! Especially as you don’t even notice it going out every month! I bet it feels like a little bonus when you get in in November!?

  3. Very inspired post! Now is a great time! Budget and save where you can. I really like that you mentioned starting to prep and buy NOW. Christmas is so stressful!

    1. Author

      Thank you ☺️ it shocked me a little bit when I realised how soon it actually is! Definitely going to stick to my own advice though and start putting money aside now, I’ve already got a few gifts sorted from the sales and will make a lot of people hampers instead of gifts with little bits that relate to them

  4. Some great tips there. I start my Xmas shopping on Boxing Day lol. I also pick stuff up from duty free when going on holiday. I have stuff everywhere at the moment so I need to write it all down and box it up till I need it. Thanks for sharing x

    1. Author

      No better day to start! You can get so many bargains in the sales. If I’m not seeing people till after Christmas I’ll often pick up their presents in the sales to save a few ££
      It’s great to see how organised you are once you’ve got it all written down as well! X

  5. Your ideas are quite helpful, as having a budget is so crucial to navigating Christmas! Our family has switched to doing a White Elephant gift exchange we have started a box to put in items that we no longer want but can use for this exchange and that has helped us cut costs

    1. Author

      I’ve not heard of the White Elephant gift exchange but it sounds like a good idea! Any way to cut costs is good and it’s whatever works best for you 🙂

  6. I always forget to save for Christmas at this time of the year and I end up hurrying last minute. Now I definitely need to start saving or buying presents early this year. Thanks for sharing!

    1. Author

      No worries! But yes, get shopping now! It just prolongs the festive cheer for me 😉

  7. How crazy is it that we’re thinking about Christmas already?! YES to all of these tips! It can get crazy expensive and very last minute if not properly planned. I love your tip about thinking HOW MUCH we actually should save each month in order to have enough for Christmas shopping. I also think that it’s never too early enough to start shopping!


    1. Author

      Too crazy! But I love everything Christmas so it’s never too early for me 😂🤣

      The costs can ramp up really quickly very easily. Splitting the cost each month breaks it down and makes it seem so much more manageable and achievable.

  8. So I’m a total nerd & I have been already dreaming of Christmas! Like to the point that I’m anxious to get my Christmas village up. 😂

    I’m the absolute worst when it comes to budgeting for Christmas, so this was a great read. I’ve been known to shop even the week before Christmas Day and panicking because I can’t find the things I’m looking for. I’ll definitely be saving this for the holiday season! Thank you!

    1. Author

      Wait, you have a Christmas village..?! Tell me more!!!

      Ah no worries, start your shopping now and it just means you can be thinking about Christmas for even longer! I use to do that and then just buy anything because I needed to get a present, by starting sooner I have more time to try and find things that people like without rushing. I make hampers up as well with little stocking filler type things that I buy or get free throughout the year.

  9. I LOVE that you focused on realistic budgets. That’s where I always seem to struggle every year. Maybe this is the year I take this good advice and get started early with a smart budget. Also, I love Christmas too. Decorating for the season is my Zen!

    1. Author

      I always find that being realistic is key 🙂 Christmas is fab!

  10. I always had a problem with bidgeting around christmas, I’m glad I read this so I can be more prepared next time!

    1. Author

      Start with small goals and then build! Even if it’s just to save £50 or £100 between now and then it will definitely help 🙂 x

  11. This is a great post! The hubby and I already discussed where we’re going to put the tree this year. We also save up our store loyalty points (like nectar points and tesco club card points) to buy our Christmas meal with – saves us a lot of money.

    1. Author

      At least we’re not the only ones! We’ve got a bay window in the house and the first comment when we bought it was that the Christmas tree would sit in the bay 🙈
      Saving up loyalty points is a really good idea! Especially if you shop there throughout the year they soon add up

  12. I don’t even want to think about Christmas!! I feel like I always spend a ton and there is really no need. Good tips for saving though!

    Casey |

    1. Author

      I think we all spend more than we need to 🙈 always try to make it that perfect Christmas!

  13. Great post! Planning ahead makes things so much easier. As I`m going to have my first baby in October, I`m not going too crazy with the Christmas shopping this year. But I still want to get bits and bobs for the family.

    1. Author

      Ah you’ll be very busy this year then!! Congrats 🙂 you always want to make Christmas extra special for the children don’t you!!

  14. Budgeting for Christmas can be really hard! It’s great to plan ahead of time rather than worry about the costs during the same month or regret your spending choices. I use Acorns, the investment app, as my Christmas savings plan. I save $5 per week and round up my purchases and I generally have an extra $100-$200 to play around with once December hits. Thankfully, I don’t have too many people to buy presents for!

    1. Author

      Oh wow that sounds like a really good idea! I shall have to have a look into that! Especially rounding up purchases

  15. I agree with the saving and shopping for Christmas because it can get expensive!

    1. Author

      It definitely can! Too easily 🙈

  16. I am so glad I’m not the only one who starts planting for Christmas well in advance. However, I’ve never made a saving plan in advance, so that’s something that I would like to do this year. We don’t spend a ton of Christmas, we are a family of three, but it is still nice to know we can save ahead of time and plan out how much to save before we start to buy gifts.

    1. Author

      Planning is well underway! It doesn’t have to be anything amazing but knowing what you’ve got to spend actually makes it so much easier x

  17. I always feel like I save more money when I shop early, plus it’s less stressful. My goal is to get it down before black Friday so I don’t have to be a part of the holiday chaos. One thing I never really think of is creating a budget which is something I’m defiantly going to do this year.

    1. Author

      To get it all done before Black Friday would be amazing! And you wouldn’t be tempted to buy things in the sales then as you’d already have everything.. I bought my mums main present the other day in an outlet store so saved about £60!

  18. I’m gone to tell my little brother, that he should also pay a visit this blog on regular basis
    to take updated from most up-to-date reports.

  19. These are some very helpful tips on saving for christmas! Definatly need to set a budget, I am sure that will make a huge difference.

    Mel 🌙 | Moonlight Mel

    1. Author

      Budgets can seem quite daunting at first but they really do help. I’ve got a budgeting help post coming up as well if you’ve never made one before. Good luck!

  20. Hi Hannah, I’ve really upped my savings game this year. But now that September is here, this post has really inspired me to put more away fo the xmas season. I never thought about setting a budget but that doesn’t seem like a very bad idea.


    1. Author

      Hi Jenna, thanks for your comment. It’s a good idea as it gives you a basic idea of how much you need to save in reality. I’m planning on writing a brief ‘how to budget for christmas’ type post in the next few weeks!

  21. It’s never too early to start the Christmas shopping. To this day my mum always likes to be done by the time the Christmas stuff is in the shops, so usually by about October at the latest!

    1. Author

      Oh wow! I wish I was that organised, I’ve got my list pretty much done and I’ve got a few purchased but nowhere near finished yet! I want to start writing all my Christmas cards soon though. Aim to get them all written before the end of the month so that I can post them out in plenty of time.xx

      1. That’s amazing to post them out so soon! Best of luck with all of your holiday shopping and organising! X

        1. Author

          Thank you! I’m aiming for it but we’ll see if it happens!!! X

  22. Amazing tips, I think we need to save money during holidays like this because we tend to spend so much.

    1. Author

      Definitely, the costs rack up so quick as well!

  23. Great post and some great tips that I can take on board. I definitely need to set a budget! Hope you have a lovely Christmas.

    1. Author

      Ah thank you, and you! Setting the budget is the first step to success!!

  24. I totally agree on the buying presents throughout the year as & when you see them, esp if they are in a sale! This is something I do every year & it works out well. I have a list on my phone I add to when I get something new to keep track of it all too. Works great!

    1. Author

      It saves so much as long as you keep track of it, in the past I’ve forgot what I’ve bought so have ended up buying more which isn’t good at all!!

        1. Author

          Snap! I’m going through mine again tomorrow

    1. Author

      I’d love to know what it is and how you’ve done it?! X

  25. Starting early is so key – I couldn’t agree me. It sure helps to spread out the expenses but also reduces holiday stress so you can enjoy the holidays for what they were meant to be.

    1. Author

      Isn’t it just! I know a lot of people think it’s crazy but it honestly saves so much money! You also have the free time to spend with friends and family nearer Christmas if you’ve already bought everything! X

  26. Great post, these are really helpful tips.

    I try to get as much throughout the year in various sales. It really helps being prepared x

    1. Author

      Thank you, me to, it helps to spread the cost so much!

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