Christmas on a budget: Our top Xmas MoneySaving tips
Act now to slash costs
In order to avoid spending a fortune over the festive period, you need to start planning now. This isn't about early celebration, it's about preparation. There are sackfuls of things you can do now to reduce the financial stress and avoid being skint in January.
Got debt problems? Christmas can exacerbate debt issues, but it doesn't have to, as this guide shows.
If you're struggling with debts, and it's giving you sleepless nights, then free one-on-one debt help is available. Debt advisers are there to help, not judge, so don't worry. However, they get very busy in January, so don't leave it – get your appointment now.
Read our Debt help guide for a full list of free one-on-one help options. Many say, after help, "I finally got a decent night's sleep".
First – make sure you can afford Christmas
Before diving into Christmas shopping, take a step back and look at what's realistic financially. This section helps you focus on what truly matters: enjoying the season with loved ones.
Work out your Christmas budget
Many people list every lusted-for item, gifts for all, and a corking meal, then only afterwards consider: "How will I pay for it?" That's a recipe for ending up broke.
Instead, calculate your Christmas budget (see our free Budget Planner), and ask: "What can I afford to spend?" Christmas is one day – don't ruin the whole of the next year for it.
Ban unnecessary presents – watch Martin's call to arms
Consider not giving this Christmas. We're not talking about gifts from parents or grandparents, but the ever-widening glut of friends, extended family and colleagues. Christmas isn't a retail festival – we need to end obliged giving and think about what we're giving, to whom and why.
If you're yelling over your wrapping paper "what about the joy of giving?", remember gift-giving creates an obligation on recipients to give back, whether they can afford it or not. For some, the gift of "not obliging you to buy for me" is actually better.
Watch Martin's three-minute video on why. It went viral with 17 million Facebook views. Also read his original Ban unnecessary Christmas gifts blog that started it all.
You could always make a No Unnecessary Present Pact (NUPP) with friends, or at least agree to a Secret Santa or £5 to £10 cap on gifts.
Go cold turkey if you really can't afford Christmas
If you've little stashed away for Christmas, it may be possible to relieve pressure, increase happiness and avoid the nightmare before (and after) Christmas.
As Martin said in his Christmas cold turkey blog: "If you're really struggling and have nothing, then do truly go cold turkey – see family [if possible this year], spend time, think about life, watch the telly, but don't spend money on it. Christmas is just one day. Far more important is a happier, financially less-stressed New Year."
Maximise your money this Christmas
A little extra cash can make all the difference at Christmas – and there are plenty of clever ways to find it. This section shows you how to boost your festive funds.
Switch banks to get FREE MONEY
Various banks offer switch incentives throughout the year to get you to switch an existing current account to a new one with them. Essentially, banks want your custom and use bribes to get you to join them. You can usually earn between £150 and £200 for an eligible bank switch, plus potential rewards and cashback.
There tends to be several banks offering incentives to switch into them at any one time. You often have to jump through some hoops to get these offers, such as paying in a set amount and making a minimum number of debit card payments. However, this can be well worth the effort.
Check out our Best current accounts guide for full info, including a list of current bank-switching offers and what you need to do to qualify.
Boost funds by up to 6% with supermarket stamps
Supermarket saving stamp schemes encourage year-long saving for Christmas, yet a loophole allows you to get a year's bonus in one day.
Most shops pay a bonus based on how much you've saved by a specific date. So dunk the cash in the day before, and the store will add up to 6% on top – but the cash must be spent at its shops.
For example, with Tesco's Christmas Saver account, if you'd topped it up with £200 by 16 October 2025, you'd have got a £12 bonus added on top. Full info in Christmas spending boost.
Haven't used it since last Christmas? Flog it
If a few quid more in the Christmas fund would really help, flogging via eBay's a good way to start – our 40+ eBay selling tricks guide is a crash course.
Selling on Vinted is a brilliant way to make extra cash by flogging your own wardrobe – especially as there are NO fees for sellers. For collection-only items, Facebook selling is another great option.
If you prefer speed and ease rather than max price, several sites let you enter details and get a price, before you post goods (such as books), often for free. Read full info in our Boost your income guide.
Speedily uncover up to 60% off 'like new' Amazon returns
Amazon Resale (formerly Amazon Warehouse) sells customer returned or mildly damaged products for knock-down prices. You can hunt down the best deals using our Amazon Resale Discount Finder tool.
Slash the cost of sending Christmas cash abroad
Whether for a stateside nephew or a grandchild in Australia, transferring money overseas doubles the currencies, complication and cost. See our Sending money abroad guide to find out how to do so cheaply, plus info on your protection if it goes wrong.
DON'T borrow for Christmas... but if you must, get a 0% card
It's far better to budget, but if there is no other way but to borrow, see our 0% spending guide for full options. If you can't get 0% in time and it was your only option, frankly, cancel Christmas spending.
Just enjoy a meal, raise a glass and focus on a financially good New Year.
Shop savvily this Christmas
If you are buying and giving gifts, know that Christmas shopping doesn't have to completely drain your wallet – a little planning and smart spending can go a long way. This section will help you make your Christmas funds stretch further.
Make a list – and check it twice
Christmas shopping on impulse is dangerous. So make an old-fashioned shopping list and stick to it. Remember, shops spend a fortune on targeting your spending impulses – a list helps you beat them.
Even if you're shopping on the high street, benchmark prices using comparison sites first.
Use comparison sites to find cheap Christmas presents
The web usually beats the high street on price. Comparison sites help by searching the net to find you the cheapest books, games or anything else.
We've found Google Shopping to be the most consistent at finding the cheapest price – the MSE Deals team even use it as a starting point when checking out deals. The service searches a wide range of retailers, including biggies such as Amazon, Currys, John Lewis and Tesco.
For a full how-to guide and other price comparison sites to try, see 40+ online shopping tricks.
Pounce on discounts when you see them
Make a list of who you need to buy for, and whenever you see goods at decent prices, grab, wrap, and whack 'em in a Christmas cupboard.
Keep your eyes peeled for discounts and deals on our voucher and hot bargains pages. We'll also let you know the best via the MoneySavingExpert weekly email.
For cheap but thoughtful Christmas gifts, the Free photo prints deals page lists the top photo book, canvas, card and calendar discount codes.
Grab cashback on prezzies
Earn money back on your festive shopping with cashback cards and sites that reward you when you spend.
Cashback credit cards
Get paid every time you spend with a cashback credit card, and earn on every gift you buy. Get the card, set up a Direct Debit to repay in full every month so it's interest-free and, to boost the gain, use it for all spending.
The Amex Cashback Everyday credit card offers 5% cashback, usually only for purchases in the first three months (max £100), but right now it's boosted this to five months (max £125). After this you get up to 1% cashback, though you need to spend £3,000+ each year to get any cashback.
You can therefore get the boost on any Christmas spending (though cashback's paid after a year, so you'll get it for next Christmas). Full help and more options in top credit card rewards.
Cashback sites
With cashback sites, you sign up for free, then click through them to buy something. They get paid for sending traffic and give some of this to you, netting some people £100s a year.
Never let the cashback dictate where you spend though. Focus on the cheapest deal, then see whether cashback's available. We've a full explanation in Top cashback sites.
Bag a beauty Advent calendar bargain
Each year around September, retailers such as Boots, Liberty, Next, Asos and others launch their beauty advent calendars. They’re rarely cheap upfront, but if you’d buy the products inside anyway, they can be a cracking way to get a pile of goodies for far less than the separate shop price.
These calendars tend to sell out quickly, so if you’re tempted, it’s one to keep an eye out for early in autumn. This year's have mostly sold out, but keep an eye on MSE Olivia's beauty Advent bargains for a full round up next year.
Also see the Great 'smell-a-like perfumes' hunt, where Forumites sniff out dirt-cheap dead ringers for posh scents.
Get big discounts at online outlet stores
Forget driving miles to outlet villages to snap up end-of-line bargains. Did you know that lots of high street and high-end shops have online outlet stores? You can usually find them on eBay or via special websites.
Our Discount outlets guide lists the best – big names include Molton Brown, Ninja, Dyson and many more.
Find hidden local eBay bargains
Whether a PS4 console or children's books, eBay sellers often specify items must be collected in person. As this means fewer bids, there are bargains to be had.
We've built a mapping tool to make it easier to search for 'collection only' items, so you don't have to wade through items which also offer postage. Tell our Local eBay Deals Mapper your postcode and how far you're prepared to schlepp, and it maps nearby gems.
For more help detecting hidden bargains, our eBay buying secrets guide lists tools which find underpriced goods, exploit spelling mistakes and auto-bid to seal deals.
Sites such as Facebook Marketplace and TikTok Shop are also worth checking for cheap Christmas presents.
Try comping for free Christmas gifts
Comping is the process of systematically sourcing and entering hundreds of the right competitions using web tools.
From cars to five-star USA holidays, MoneySavers have won it all. Smaller prizes such as toys, handbags and gift vouchers make cracking free Christmas gifts, though possibly for next year. No guarantees, but why not give it a try? See our 40+ comping tips guide.
Buy in Boxing Day sales in time for Christmas
Each year a few stores start their Boxing Day sales early. Delivery may cost a bit more to get it in time for Christmas, but you should save overall. Do crunch the numbers to make sure you really are saving.
Every year our Deals Hunters gaze into their crystal balls and predict deals to come this year. There is a full list in our Christmas Deals Predictor, now updated for 2025.
Travelling by train? Book rail tickets in advance
If you're not channelling your inner Chris Rea this Christmas, you may want to snag a bargain on your train tickets to home and back. Rail operators generally launch tickets 10 to 12 weeks before travel and cheap tickets vanish quickly, but you can sign up to get a free alert when your tickets go on sale.
While the cheapest advance fares will likely have already gone, big savings are still possible. Don't assume you've missed the boat (or rather, train). Always check whether cheap advance tickets are still available before travelling – many firms now let you buy them on the day. See how to book early, late. Our Cheap train tickets guide includes full help.
Know your spending rights
When it comes to Christmas spending, a little knowledge can go a long way. This section helps you shop safely by understanding your consumer rights.
Be wary when buying gift cards
If you're considering giving gift cards or vouchers, there are four key points to note:
If a retailer goes bust, gift cards can become useless. A host of big-name retailers have gone into administration in recent years. When this happens, they usually stop accepting cards, and it's very hard to get your money back. See our Administration help guide for what to try if you have a gift card for a company that has gone bust.
Gift cards have expiry dates. Most gift cards must be redeemed within a certain period of time, so the recipient needs to spend them before they run out.
Watch for admin fees. Some firms start reducing your balance if you don't use the card within a set time. For example, the multi-shop gift-card provider One4all deducts 90p a month after you have had the card for 18 months.
They can be forgotten or lost. People can forget to use them, lose them, delete the email or accidentally run them through the wash.
Taking all of this into account, giving cash is usually a better option.
If however you still want to buy one, consider a multi-shop gift card, such as Love2Shop, so you can use it at other retailers in the scheme if one goes bust.
Don't give away your online return rights when you buy Christmas presents
Order goods online, and in most cases you've 14 days after they arrive to cancel the order, and another 14 days to send them back.
This is great if you change your mind, need a different size or want the item in a different colour. But if you've ordered a Christmas present online, there's a chance that by the time someone's unwrapped it, that window will have closed. So make sure you're happy with what you've ordered BEFORE you wrap it, so you don't lose your legal return rights.
Many stores offer extended returns policies over the Christmas period, but they don't have to, so remember to check.
For more information, see our Consumer rights guide.
Pay by credit card if it's over £100
Unfortunately, firms do go bust. If that happens and ordered goods haven't arrived, or have but are faulty, it's a nightmare. However, Section 75 of the Consumer Credit Act means if you use a credit card (not debit card, cheque or cash) to pay even partly for something costing between £100 and £30,000, the card company is jointly liable with the retailer for the whole amount.
If the firm goes bust, you can get redress from the card firm instead – valuable extra protection. Though only do this if you can clear the card in full each month to avoid interest.
Section 75 doesn't apply to purchases under £100, but there's still the option to try chargeback, which can help if you use a Visa, Mastercard or Amex credit card, or any debit or charge card. If the goods don't arrive or are faulty, you can ask your bank or card provider to reclaim the cash from the seller's bank, as long as you start the chargeback process within 120 days of realising there's a problem.
Get a gift receipt or ask shop staff to write 'it's a gift'
Legally, only the person who bought the gift has rights, so the recipient can't exchange it. Many shops ignore this and will help, but for safety, ask for a gift receipt.
If a store offers gift receipts, it suggests it's willing to deal with the recipient rather than the buyer. You should be able to exchange an item, though if you want a refund, the retailer may insist that the payment be refunded to the same card.
Alternatively, ask the shop assistant to write on both copies of the receipt that it's a gift and who it's for – for example, 'bought as a gift for Bob Smith', and this again should help to exchange the item at least.
See Returning unwanted gifts for a full guide.
DON'T think 'no receipt' means 'no return'
With faulty goods, you just need to prove that you purchased them. This could be with the receipt, but other legit records, such as bank statements, should be fine.
If you've no legal right but are just utilising a store's returns policy, and the policy requires a receipt, you do need one. See Consumer rights for more.
Don't suffer delivery disappointment this Christmas
Avoid last-minute delivery dramas by planning ahead – here are a few tips to consider.
Double-check Christmas delivery is specified
If Christmas goods are late, you can only complain if you or the retailer specified it was for pre-Christmas delivery. Then it's a breach of contract, and you've a right to a refund.
Even if Christmas delivery isn't specified, items should be delivered within a 'reasonable time'. See our Consumer rights guide for more details on your rights.
Get organised to take advantage of 'free or cheap' online orders...
If you need to order online, do it well in advance. Each year, we compile a full list of major retailers' last order dates, including the last free order dates, plus how much you'll pay if you leave it later. This will be updated for 2025 shortly.
... and similarly, sort Christmas post early
If using Royal Mail, ensure you send parcels and letters before the last posting dates. The deadlines depend on where and how you send your post.
For example, in 2025, the UK cut-offs are:
Second class: Wednesday 17 December
First class: Saturday 20 December
See the Royal Mail website for other key dates.
And for a full list of ways to cut costs, including discount web couriers, see our Cheap parcel delivery guide. Also see MSE Jenny's How to slash the cost of sending gifts overseas blog – for example, to Australia for £6 instead of £65.
Use the web to cut delivery costs
Sending a package to friends? If it's more than 1kg, you can often save a packet (sorry) using a discount web courier instead of Royal Mail – and even have goods collected from your home.
Note that many couriers are currently taking longer to deliver than normal. See Cheap parcel delivery.
Buy festive food and drink for less
This section shows you how to save on Christmas food and drink – from downshifting brands to finding the best wine deals.
Buy a cheap turkey or turkey alternative – and don't forget to downshift
With an 'It's Christmas! We need the best!' battle cry, everyone raids the supermarket shelves. Yet don't assume you'll prefer higher-brand goods.
To test this, Martin held a blind taste-test soiree for nurses at a hospital with champers, turkeys and more during his live TV show. They preferred the lower-brand goods (or couldn't tell the difference) 62% of the time.
So, don't be a retail snob. Taste with your tongue, not by looking at the packaging. And buy what's right for you, not the shop. Our Downshift Challenge guide will help you to see whether you can cut everyday costs by thousands of pounds.
Corking wine and bubbly deals
Use our wine deals page to find the biggest discount or cheapest crate at Tesco Wine, M&S, Majestic and others.
For bargain Christmas bubbly, see champagne deals. Though we hope you pay less, not drink more – be Drinkaware.
DON'T save Tesco vouchers for festive food
First, quickly check whether you can reclaim Tesco Clubcard vouchers online. So many find big cash, often £100, we can't stop banging on about this.
Yet don't save them for Christmas food treats. First check Tesco's Clubcard Boost partners to get 2x your points' value (£10 becomes £20) to use at restaurants, hotels, cinemas and more.
For more details, see Boost Tesco Clubcard vouchers.
Try these cheap Christmas present ideas
You don't need to spend big to make the festive period magical. Here are some free or cheap Christmas present ideas to try...
Try our list of free (or cheap) ways to sprinkle Christmas magic for kids
Chances are your best childhood Christmas memories aren't about beautifully co-ordinated baubles, finest-range turkeys or even getting that year's must-have toy. For many, it's the build-up that's the most fun – experiences that involve spending more time with parents or carers.
So we've 20 free (or very cheap) Christmas traditions to create memories, from driving round after dark to admire twinkly streets to leaving something heavy on the sofa to make a dent "where Santa plonked his big bottom". See MSE Jenny's free Christmas magic blog.
Give snowman soup and try other crafty Christmas fun
MoneySaving's about cutting bills, not cutting back – thrift's about spending time, not cash. Its doyens live in our Old style forum board. There are hundreds of tips in there – here are a few for inspiration.
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Give kids snowman soup. Little'uns don't care what it costs. A perennial favourite is snowman soup – hot chocolate, marshmallows and some choc chips, all wrapped up in a cellophane cone. Or naughtier, there's reindeer poo. Kids go ape for easy-to-make sock monkeys too.
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Thrifty cards, decorations and more. Get crafty, and rustle up some decorations, cards and wrapping paper that would put Kirstie Allsopp to shame. Get kids involved too, with handprints or potato stamps on cards or brown paper.
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The complete Old Style Christmas dinner compendium. Enjoy tastier, not pricier, festive food with this Christmas dinner compendium (scroll to the middle of the first post). From sprucing up sprouts to the best mince pies ever, it's full of ideas.
To help with festive preparation, the Special occasions forum board is full of cheap Christmas ideas. MoneySavers post bargain prezzies and decorations, and share suggestions on having a more affordable Christmas. See what ways you can save.
Get free letters from Santa
The big fella has his elves stationed everywhere to help him reply to all the little people who write to him.
There are hordes of elves stationed at Royal Mail, so post a letter and Santa will reply at no cost.
Meanwhile, Santa's elves at the RNIB – the Royal National Institute of Blind People – help blind or partially sighted kids get a free letter in Braille, large print or audio. Apply online by Sunday 30 November. Missed it? You can email santa@rnib.org.uk, but no promises he'll reply in December – he's busy!
Track Santa as he delivers prezzies
There's a nifty free site for your little ones to watch Santa's progress on Christmas Eve. Log on to NoradSanta.org (this year it launches on 1 December).
Do a 'robo' secret Santa
Secret Santa's usually associated with offices, but there's no reason not to extend this to loved ones. For those who don't know, everyone's name goes into a hat, then you draw out who you're buying for. So you only buy and receive one gift, usually within a spending limit.
These days you don't even need the hat – an online tool can organise it all for you with a few clicks.
One of the slickest is free site Elfster. Just sign up and enter a few details, such as your maximum budget and the date you'll do the exchange. You can either enter the other people's emails or cut and paste a sign-up link. You can even set up wish-lists. Another free option worth a look is Drawnames, which works in a similar way.
Former MSE Steve is a secret-Santa fan:
My wife's family have done this for years, and it works well. In fact, it's a huge help when you don't know what to buy the in-laws. A limit's agreed – this year it's £50 – and we use a free tool to organise it all and allow people to send a wish-list.
It saves everyone cash, cuts down on gifts people feel obligated to give but no one really wants – and it's adults-only, so the kids still get spoilt.
Use our free Christmas gift cheques
Presents don't have to equate to big bucks. Whether it's breakfast in bed, sorting some life admin or cleaning someone's car, your time could be the best present. So pledge to do something nice, not spend, by printing and sending a free Christmas gift cheque.
Wrap presents sustainably to save
If you already shop for wrapping paper in the sales, why not try something different this year?
Former MSE Rhiannon goes one further and saves wrapping paper to use year after year, until it can't be used any more. And did you know, some types of wrapping paper can't be recycled? Learn more in her blog Wrapping presents sustainably – she even shows you how to wrap gifts in cloth using the Japanese art of furoshiki.
Give back this Christmas
It's become an MSE tradition to remind MoneySavers of those in need at Christmas. You may still be counting the pennies, but there are many ways to do some good for free.
For example, you could give to a foodbank, buy toys for kids who might not get a gift or look out for elderly neighbours.
There's a full list of ways to volunteer and donate for free in How to do good at Christmas, including being there for isolated older people at this time of year.
Check out charity gift catalogues
Want to give, but don't want to waste cash on tat? Yule love our rundown of wonderful and weird charity gifts (soon to be updated for 2025), which includes how much goes to good causes.
Be it mosquito nets, a water filter or winter clothes for a child, the guide's packed with ideas, with the gifts starting from just a few pounds.
Look ahead to next year's Christmas
A little planning now can make next Christmas far less stressful – not to mention less expensive. This section explains how to save for next year's Christmas.
Start saving early to spread the cost
The Bank of England says the average UK household spends £713 in the run-up to Christmas. Yet many struggle to foot it from December's pay packet alone and end up borrowing.
So next year, why not put Christmas money aside from January? Better than borrowing and paying back later with interest. Work out your budget, then use our Top savings accounts guide to find the most profitable home for your cash. If you can't afford to save, cut your cloth accordingly.
Try our DemoHoHotivator tool to see what you could save
Small sacrifices add up. For example, if next year you stopped buying an 80p Mars bar every day between 1 January and Christmas, you'll have an extra £292 in the festive kitty.
Use our DemoHoHotivator to see how much you could save by cutting spend on essentials.
Grab end-of-sale bargains
Many wonder when they should start Christmas shopping – turns out doing so sooner rather than later can pay dividends. By grabbing giftwrap, Christmas cards, baubles, decorations or even a new plastic tree as heavy discounts hit in January, you can save significantly.
We're not alone in saying this. In a poll of over 8,000 MoneySavers, 48% had already bought next Christmas's cards, wrapping paper and gift tags by February, while 21% had bought crackers and 17% had bought decorations and lights.
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