Time to start budgeting for Christmas

Believe it or not, the silly season is almost upon us. Here are a few ways to prepare to minimise costs as we approach the end of the year.

With just over three months left until Christmas, it’s time to get planning for what’s often the most expensive time of year.

In 2023, many Australian families have been crunched by higher costs, which means finding ways to reduce Christmas expenses may be even more important this year. As always, planning ahead can help minimise Christmas stress, too. Here are a few ideas.

1. Write a list and stick to it

There are often many components that come together to make a great Christmas, including gifts, food and sometimes travel. Think about what your Christmas looks like and start planning for the costs.

If you tend to have a Christmas routine, consider looking at what you spent last year and adding a margin for inflation. Once you’ve come up with your budget, write a meticulous list of everything you need. You can then work through the list and spread the costs over three months.

2. Start saving now

If you tend to set aside money for Christmas, you could consider a three-month Police Bank term deposit. Rates are higher than they have been in years, which means you’ll be rewarded with a bit of extra interest.

It’s also worth looking at our other high-interest savings accounts, including our Savings Plus, which allows you to put cash into nine different buckets (without monthly fees).

Consider starting with a budget and working out how much you can afford to put aside each week, then let your bank account do the extra work for you.

3. Buy early

Between now and Christmas, there are likely to be opportunities to bag a bargain. For example, Black Friday is coming up in November. If you’ve prepared a list of what you want and need for the big day, you can be extra vigilant when discounts come up.

4. Re-think your gifts and dinner spread

There are lots of ways to show your loved ones you care about them without spending big on presents. Consider homemade gifts, such as candles, soaps or baked goods. You could also arrange a Secret Santa or Kris Kringle, where each person in the group buys a gift for one pre-assigned group member. Increasingly, families are also adopting no-gift Christmases, especially for adults.

If you’re hosting a Christmas lunch or dinner, plan a menu well ahead of time and, again, buy early where you can; shops often hike up costs in the days before Christmas. You can also ask your guests to bring a plate of food and/or their own drinks. It often adds to the variety, while reducing your costs as the host.