Benjamin Teo
Christmas is magical, but the gift-giving part? That can make your wallet cringe. With rising costs and tighter budgets, finding thoughtful Christmas gifts without overspending feels almost impossible. In 2023, 30% of shoppers plan to cut their holiday budgets, with average spending expected to reach $646 per person—down from $700 in 2022. The pressure is even higher in Australia, where inflation has surged 3.8% over the past year. As a result, 60% of Australians are rethinking their holiday spending, opting for easy Christmas planning. Bargains and rewards to make the season more affordable. But don’t worry—you can still make this Christmas special without breaking the bank. Let’s dive into some budget-friendly gift ideas that will delight your loved ones and keep your finances in check.
5 Key Takeaways
- Set a budget early and stick to it by opening a savings account or using an 8-week savings plan.
- Shop smart by taking advantage of Black Friday and Cyber Monday sales, using price comparison tools, and utilizing cashback sites like Cashrewards can help you find gift ideas on a budget.
- DIY gifts and experiences are budget-friendly alternatives that add a personal touch to your Christmas gifts.
- Avoid credit card debt by avoiding buy-now-pay-later services and impulse buying during last-minute shopping.
- Plan for extra expenses like holiday meals, postage, and travel to avoid unexpected costs during the festive season.
Setting a Christmas Gift Budget
When it comes to Christmas gift-giving, setting a budget is essential (especially if you don’t want to enter January with an empty bank account). With rising costs – household spending in Australia jumped 2.9% from July 2023 to July 2024 – it’s more important than ever to have a clear spending plan. Here’s how you can make sure your Christmas budget works for you.
- Determine Your Overall Christmas Spending Limit
First, decide how much you can realistically afford to spend this Christmas. Look at your income and regular expenses, then factor in what you can set aside for gifts, food, and other festive goodies. With prices creeping up on almost everything, many families are trimming down their budgets this year. Setting a clear limit will help avoid that post-holiday financial hangover (the one that comes around every January!). - Create a List of Gift Recipients
Once you’ve set your overall budget, the next step is to decide who’s getting a gift. A tiered list can help you prioritize. Think of it like this: you’ll have your “must-gift” people (like close family and besties) and your “nice-to-gift” people (co-workers, neighbours, your kid’s piano teacher – you get the idea). Since 61% of shoppers plan to keep their spending aligned with last year’s, making a solid list can help you manage costs without feeling like you’ve missed anything important. - Allocate Specific Amounts for Each Person
Now that you’ve got your list, it’s time to assign specific amounts to each person. You’ll probably want to allocate more for your “must-gift” people, while your “nice-to-gift” folks can get something simple but thoughtful (like a DIY Christmas gift). By setting these limits, you can stretch your budget without going overboard.
Must-gift: Partner, parents, kids, nieces and nephews
Nice-to-gift: Teachers, co-workers, distant relatives - Factor in Additional Holiday Expenses
Don’t forget – gifts aren’t the only things draining your wallet this festive season. There are travel costs, food for the big Christmas dinner, decorations (because, let’s face it, that gingerbread house isn’t going to build itself), and wrapping supplies. All those pretty gift bags and ribbons? They add up! It’s worth adding a little extra to your budget for those unexpected costs – like last-minute trips to the store for more wrapping paper or ornament repairs when the cat knocks down the tree (again).
12 Tips On How To Save On Your Christmas Shopping
With rising living costs and tighter budgets, it’s important to be smart about holiday spending. Whether you’re looking for gifts for every budget or hoping to snag the best cheap Christmas gifts, a few strategic moves can help you save big and still find the perfect gift for everyone on your list. Here are some savvy saving and shopping tips tailored for Australians this Christmas season.
1. Start a Dedicated Christmas Savings Account
Open a high-interest or fee-free savings account just for Christmas. It’s a simple way to set money aside throughout the year, ensuring you’ll have enough gifts for everyone on your list. By December, you’ll be ready to buy those great gifts without stressing over your bank balance.
2. Set Up Automatic Transfers to Your Christmas Fund
To make saving effortless, automate a small transfer into your Christmas account each payday to ensure you have enough for your Christmas gift. It’s an easy way to build up funds for Christmas gifts for every budget, ensuring you have cash on hand for any one-off purchases or spontaneous finds.
3. Use the 8-Week Christmas Savings Plan
Starting in October, set aside a set amount each week. Even saving $50 per week for eight weeks can give you $400 by December—plenty for the best cheap Christmas gifts, like a cozy picture frame or a warm and cozy throw for the whole family. It’s perfect for keeping within your budget this Christmas.
4. Cash In Loyalty Points and Rewards
Make the most of loyalty programs, credit card points, and supermarket rewards to give the gift of something special without spending much. Whether you cash in points for gift cards or use rewards for groceries and decorations, this can help restore your budget.
5. Shop Early to Take Advantage of Sales
Plan ahead to take advantage of Black Friday and Cyber Monday deals. Retailers offer discounts on various products, from electronics to decorate-your-home essentials. In May 2024, retail growth hit 3% year-on-year in categories like cosmetics and recreational goods, proving there are great deals if you’re proactive.
6. Research Prices Online Before Buying
Before purchasing, use price comparison tools like Google Shopping or PriceSpy to find the best gifts. Shop for gifts at the best prices to make your Christmas this year more affordable. With 16.8% of retail spending online in 2023, the Internet offers many opportunities for finding ideal gifts without leaving home.
7. Use Cashback Sites and Coupon Codes
Cashback sites like Cashrewards and ShopBack are fantastic for stacking savings. You can make the perfect gift purchases while getting a percentage of your money back, making them perfect choices for budget-conscious shoppers.
8. Consider Factory Outlets and Op Shops for Bargains
Factory outlets and op shops are treasure troves for one-off and unique gifts. You’ll often find discounted items still perfect for gifting, like a perfect DIY set for a creative friend or a high-quality throw blanket. It’s a great gift idea for scoring deals while supporting sustainable shopping.
9. Take Advantage of Black Friday and Cyber Monday Sales
November’s sale events are the perfect opportunity to snag the best cheap Christmas gifts at a fraction of the usual price. With Christmas gifts for every budget available, you can start ticking people off your list early and avoid last-minute shopping stress. Retail spending reached $35.9 billion in May 2024, showing smart shoppers can find deals year-round.
10. Use Government Resources Like NSW Fuel Check for Travel Savings
Travelling during the holidays? Use resources like NSW Fuel Check to compare fuel prices and plan toll-free routes. With retail spending rising in areas like Tasmania (up 4.4%) and Western Australia (up 3.5%), it’s clear that travel and gift-giving costs vary by region, so finding savings where you can is key.
11. Shop at Australian Retailers to Support Local Businesses
Supporting local retailers is not only a good way to find unique, homegrown gifts, but it also boosts the economy. In March 2024, Perth saw a 10.7% rise in spending, showing the importance of shopping locally post-COVID. Plus, it’s a great way to find one-off items for perfect gifts.
12. Be Aware of Australia Post’s ‘Send By’ Dates for Timely Delivery
Avoid the holiday rush by checking Australia Post’s ‘send by’ dates to ensure your gifts arrive on time. No one wants to unwrap an empty box on Christmas morning!
Gift-Giving Alternatives
Not all Christmas gifts have to be store-bought or expensive. Sometimes, thinking outside the box can be more meaningful and budget-friendly. Here are a few alternative ways to give the gift of thoughtfulness without stretching your wallet too thin.
Organize a Secret Santa or Kris Kringle
Secret Santa is a perfect choice for keeping gift-giving manageable. Instead of buying gifts for everyone, each person picks one name. It’s budget-friendly and brings extra cheer to this time of the year. Plus, it’s fun to watch everyone unwrap their surprises!
Set Spending Limits for Family and Friend Groups
Be upfront about setting a budget. Many people are looking to cut back this year, and discussing limits helps clarify something: you don’t need to overspend to find thoughtful Christmas gift ideas. Everyone will appreciate sticking to a reasonable amount.
Give Homemade or DIY Gifts
DIY gifts are great for those who want to make something special without the big price tag. Whether it’s a homemade candle, cookies, or a hand-crafted photo album, these gifts are personal and thoughtful – something your loved ones will love.
Offer Services or Experiences Instead of Material Items
Know someone who is difficult to shop for? Instead of a physical item, offer an experience. A home-cooked meal, babysitting, or even a day out can be the perfect choice for making Christmas memorable without material clutter.
Avoiding Common Pitfalls
If you’re not careful, the holiday season can quickly turn into a budget-busting frenzy. Here are a few common mistakes to watch out for when planning your Christmas spending.
Don’t Rely on Credit Cards or Buy-Now-Pay-Later Services
While these options seem convenient, they often lead to debt accumulation in January. In Australia, many shoppers end up with unwanted credit card debt after the holidays, making it harder to start the new year on a positive financial note. Stick to your budget to avoid a post-holiday headache.
Avoid Last-Minute Shopping and Impulse Purchases
Last-minute shopping tends to lead to overspending, especially when deals are limited. With household spending up 2.9% compared to July 2023, it’s easy to blow your budget when you’re in a rush. Planning ahead ensures you stay within your limits and avoid unnecessary splurges.
Be Cautious of Over-Catering for Holiday Meals
We all love a big Christmas feast, but over-catering can result in wasted food and money. Plan your meals carefully to reduce leftovers and stretch your grocery budget, especially if you’re hosting this year.
Remember to Budget for Postage
Shipping costs can sneak up on you, particularly when sending gifts interstate or overseas. Remember to account for postage in your holiday budget, as these expenses can increase quickly, especially during peak delivery times.
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The original DadShop writer, owner, fun loving and tech guy. Great with computers, gadgets, quick on his feet and lover of novelty gifts. Ben writes for our wonderful blog occasionally just to pass time.
