11 tips to help you save - and even make - money ahead of Christmas

Marie-Claire Dorking
·Contributor
·5-min read
Christmas Savings Background with Pink Piggy Bank Wearing Santa Hat
Christmas is coming... but our expert money-saving tips will help you feel ready. (Getty Images)

It may seem a little too early to mention the C-word, considering we've not even had Halloween yet, but Christmas is only two months - and two pay packets - away.

The run up the the festive season is always a bit tight when it comes to finances, particularly as the cost of living crisis rumbles on, energy prices continue to rise and the average British family can look forward to a Christmas spend of over £800.

But, there are some things you can do now to save some for the most expensive wonderful time of the year.

"Think about how much you’ll realistically spend this Christmas, factoring in the cost of food, gifts, events and any other expenses," explains Liz Hunter, director at Money Expert. "Divide this total into three equal parts. Once you receive your pay later this month, set aside one-third of the budget in a savings account." Repeat this process on your November pay day.

Food prices often increase the closer it gets to Christmas, so buy what you can while it's cheaper - or on offer. "Fresh produce won't last, but non-perishable items like biscuits, nuts, chocolates and alcohol can be purchased in advance," Hunter advises. "Check the yellow sticker and reduced to clear shelves every time you shop, too. Many items, including meat joints and fish, can be frozen – which could significantly help to reduce the cost of your December food shopping."

With cashback websites and apps, you can earn money back on every Christmas present you buy. "These schemes work by tracking your online purchases and rewarding you with a percentage of your spending as cashback," Hunter explains. "For example, if you buy something for £100 and the provider offers 5% cashback, you’ll pocket £5 credit. Once you’ve earned enough, you can withdraw it as cash, gift cards or vouchers." The two biggest platforms in the UK are Topcashback and Quidco.

This often overlooked hack will often save you 5-20% on all online purchases. With a simple online search, you’ll be able to find a working discount/promo code for most online retailers. "The easiest way to make the most of discount codes is to install a browser extension, such as Honey or Pouch, which will automatically apply working discount codes to your purchases at checkout," Hunter advises.

According to Oxfam, six in 10 people believe it's more acceptable than ever before to give second-hand gifts to a loved one, owing to both the rising cost of living and environmental concerns. With this in mind – and with 70-odd days still to go until Christmas – there’s plenty of time to raid your local charity job and scour eBay, Vinted and Facebook Marketplace for unique second-hand gifts.

It’s perfectly okay to scale things back. "Don't feel guilty about setting boundaries and expectations," Hunter says. "The key is open communication. Let your loved ones know now that you're working with a tighter budget. Suggesting a specific spending limit can help everyone adjust their expectations. For larger groups, a Secret Santa can make things even easier and more affordable."

Martin Lewis has issued some do-nows to help with the costs of the holidays, including earning a £30 Amazon voucher by doing some quick online activities. "To earn some extra cash from the comfort of your own home, Swagbucks rewards you for simply playing games or filling out surveys," he advises.

Make a list of things you want to buy now and purchase them when they are at their cheapest as prices will fluctuate. Martin Lewis suggests looking at online Amazon price tracker CamelCamelCamel. Other tips to power down the price of presents from the money saving expert include:

  • Using shopping price-comparisons. PriceRunner and Google Shopping.

  • Leaving your online shopping basket. If you're logged in and leave items in your basket Lewis says firms will often send codes to tempt you back.

  • Find out when the price drops. PriceSpy allows you to put in an item and what you're willing to pay for it and will email when (if) the item drops to that price.

  • Check the min free delivery spend. If you're just below it, it can be cheaper to add a small extra item than pay for delivery.

We all think of spring as the time to declutter, but it's worth doing now. "Take a look around your house for clothing, old mobile phone handsets, books and other things you don’t use anymore to sell online," suggests Amelia Murray, money expert at Be Clever With Your Cash.

Have a think about where you may have built up little pots of cash, such as in cashback or points. "Do you have loyalty points built up with Nectar, Tesco or Boots? You may also have some gift cards left in the back of your wallet or your inbox, and it is better to spend them soon rather than wait until they expire. These extra bits of cash can help to boost your Christmas spending," Murray adds.

It may be a little too late to try the 1p challenge for this Christmas but there's nothing to stop you doing it for next. The popular challenge can help you save over £650 in time for Christmas 2025 by putting aside a very small amount daily.

You could also buy all of your presents for next year in the January sales, like this like this thrifty mum.

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