the 12 hacks of Christmas 🎄

Written by Glen James

Host of the money money money (formerly my millennial money) & Retire Right podcasts & author of The Quick-Start Guide to Investing.

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We all want to enjoy Christmas without destroying our budget, right? Here’s 12 Christmas hacks to ensure the festive season doesn’t knock you over nor destroy your bank account 😵‍💫

1. set. a. budget.

Basic? Yes. Essential? ALSO YES. If you’re going into the silly season without an idea of the additional spending you’ll be doing, on top of your regular expenses, then you will be rudely awakened when you overspend. The reason Christmas hurts so much financially is because you generally need more money for events, holidays, gifts and celebrations ON TOP of paying rent, bills, basic groceries, etc.

Knowing Christmas comes around every year you need to start factoring it into your overall spending plan, because you can be putting cash aside all year round for this event. But of course you need an idea of how much you’re going to spend over the course of Christmas/New Years. Here’s what you need to consider - grab a pen and paper or build a spreadsheet and calculate these items:

1. Gifts (set a dollar limit per gift; write down names of specific people for gifts)

2. Wrapping paper and gift bags

3. Christmas cards and postage

4. Holiday food and drinks

5. Decorations

6. Travel expenses (flights, fuel, accommodation)

7. Office or community parties

8. Donations and charity contributions

9. New outfits for events

10. Host or guest expenses for gatherings (potluck dishes, beverages)

11. Entertainment (movies, events, attractions)

Take a look at your total. Factor that into your spending plan throughout the year, or if it’s closer to Christmas, start putting this cash away every pay cycle so there are no nasty surprises. You need to know ahead of time what you will be spending, and work to that limit.

Pro tip: if you want to take this to the next level you could take your Christmas budget out in cash, and only spend the cash you have, avoiding the use of debit or credit cards. There’s something about using physical cash that helps conceptualise how much you really have to spend.

2. no gifts for adults

Let’s be real — we don’t need anything, right? Focus on spending time with friends and family instead, and don’t continue to fill your house (and everyone else’s) with junk. Instead of gifts, write a really nice and thoughtful card outlining what you love about that person. Focus gift giving on the kids who still believe in Santa. Oh, um, wait he’s totally real cough.

But a note to those buying gifts for other people’s kids: talk to their parents about your gift ideas before locking it in. The parents may already be drowning in toys and prefer not to add to the chaos, or they might have a specific gift in mind. They might also have a larger gift that multiple parties are contributing to, or they might have an experience they’re keen to give their kids, and perhaps you can contribute towards that? Just check in first.

3. use Secret Santa or Dirty Santa to cut back on gifts

So we know some families are reallllly focused on gifts, we get it. It’s become deeply entrenched in some family or friend cultures. It can feel impossible to turn that around, especially if you’re the one who earns less and struggles to keep up with the gift budgets others seem to be able to afford! But there are two ways you can begin to turn that culture around — with Secret Santa or Dirty Santa.

Secret Santa: this is a great activity to begin reducing the number of gifts your family delivers each Christmas. Give everyone one person to buy a gift for, and leave it there. Each person draws a name of family or friends out of a hat and finds a gift for that person. Keep it simple and gift things like books, plants or succulents, your own homemade hot chocolate mix or steak seasoning (YUM). Select how much is the maximum you’ll spend on the gift, and make it more about the act of giving than the monetary value of the gift.

Dirty Santa: this takes the fun to the next level and suits big gatherings.

Here’s a simplified step-by-step guide for playing Dirty Santa:

1. Bring a gift: Each guest brings one wrapped gift to add to the pile. You may want to set a price limit for fairness.

2. Draw numbers: Everyone draws a number from a hat, which determines the order of who picks a gift.

3. First person picks a gift: Person #1 selects a gift from the pile and opens it. Everyone reacts to the gift.

4. Next person picks or steals: Person #2 can either pick a new gift from the pile or steal the gift from Person #1.

5. Continue picking or stealing: Each new person can choose to pick a gift from the pile or steal a gift from someone who has already picked.

6. Stolen gifts: If your gift gets stolen, you can either pick a new one from the pile or steal from someone else.

7. Stealing limits: Each gift can only be stolen a maximum of three times.

8. Final round for person #1: After everyone else has picked or stolen, Person #1 gets a final chance to steal a gift.

The game ends once all gifts have been opened and no more steals can occur!

Pro tip: wrap your gift deceptively. If it’s a small gift, for example, wrap it in a massive box to throw off people’s perceptions. Those kinds of gags add to the fun.

4. set a boundary for travel

Time to set some boundaries with family and friends! You don’t need to see every. single. person. in. your. extended. family. every. Christmas. — you have permission to say no. Preserve your energy and finances during the Christmas season by setting clear boundaries around holiday travel. Define your limits by considering factors like distance, duration, and budget. Prioritise quality over quantity, focusing on meaningful experiences with loved ones over constant travel — and don’t underestimate the power of a simple phone call or FaceTime on Christmas Day. You'll conserve your energy, reduce stress, and avoid excessive expenses. By setting these boundaries, you can make the most of the holiday season without feeling overwhelmed by travel-related demands.

Parents: do not apologise for setting boundaries that support your kids too — their energy is very likely to be sapped jumping from gathering to gathering. You can’t see every grandparent at once. Avoid the meltdowns and stick to what you know your kids can handle.

5. use your skills & DIY

What unique skill do you have that could be a gift to someone else — baking, sewing, building, painting, handcrafting, gardening, woodworking? Create a boutique gift that someone can’t buy anywhere. It also doesn’t have to be purely a hobby or craft item, consider things like:

• spice blends: create your own spice blends for cooking, such as taco seasoning, barbecue rubs, or infused salts. Package them in small jars with personalised labels.

• sweet treats: bake cookies, make jam, or create a hot chocolate mix to give as edible gifts. Decorate the packaging for an extra festive touch.

• homebrewed beers: this one is a fun one! Check out a local homebrew shop and ask questions about the process. It can be pretty fun (and tasty).

• your kids getting crafty! Give them some supplies to create drawings, sketches, paintings, tote bags or coasters that can be gifts to family or friends.

• preserved or fermented food: one for the gardeners or keen chefs! Can you make kimchi, sauerkraut, salsa or pesto from items you grow or buy? Look at what you have access to and see what recipes, preserves or ferments could work.

7. utilise rewards programs

Supercharge your savings by maximising rewards points. Whether you’re using your Everyday Rewards card, Flybuys or accruing points in your Shopback app you could be earning some cash towards your Christmas budget all year round. Then, when the holiday season arrives, you can redeem these points for a variety of benefits, from discounts on your Christmas groceries to free or heavily discounted gift items. It's a smart way to make the most of your everyday spending, ensuring you have a well-stocked and budget-friendly Christmas celebration. Make it a priority for next Christmas too! The more points you collect over time, the better.

8. use layby for gifts

Layby is a helpful strategy to prepare for Christmas gifts without resorting to buy-now-pay-later schemes, and quite a few major stores still offer it. Some stores still offering this include Target, BCF, Big W, Spotlight, David Jones, and Anaconda. As much as we’d always encourage to save up and then buy what you need, we know that’s not possible for everyone, and perhaps the structure of layby works well for you in that the cash won’t be sitting idly in your bank account. By starting early and securing the gifts you want through layby, you not only have the luxury of choice but also the peace of mind knowing that you're staying within your budget. Just be aware of the retailer you’re utilising, their conditions (most require you to be in-store at the time to set up the layby) and any service fees they may charge you for this ($3 is pretty standard, or a percentage deposit made on the day).

9. encourage everyone to bring a plate to gatherings

Time for some delegation! To alleviate the holiday fuss and keep costs in check, a wonderful tradition to adopt is having everyone contribute by bringing a plate of food to Christmas lunch or dinner. This communal effort not only eases the burden on the host but also allows each guest to showcase their culinary skills and share their favourite dishes. Whether it's Aunt Susan's famous stuffing, Grandpa's secret pie recipe, or a friend's vegan side dish, this potluck-style approach adds a diverse and delightful array of flavours to the table while promoting a sense of togetherness. It's a perfect way to focus on the joy of sharing and savouring a meal together, without the stress of one person shouldering the entire holiday feast's preparation and cost.

11. maximise free Christmas experiences

Cash in on the free community Christmas celebrations that happen all through December! From local Christmas carols at the park, to admiring the huge Christmas tree in public parks and squares, to admiring the streets full of Christmas light displays, there are a heap of events happening locally over the season. Get your friends or family in the car, on the bus or on foot and check them out. Take a look at local Facebook groups and pages, plus local council websites and book in a few freebie events and displays you can enjoy. You could even organise a street or building party with your neighbours! Set up a BBQ, encourage everyone to bring their food and drinks, chuck on some tunes and you have created a little bit of Christmas community.

12. buy second hand & tap into the local handmade market

Opting for second hand gifts during the Christmas season is a smart and sustainable choice that can significantly reduce both cost and waste. It not only allows you to find unique and budget-friendly presents but also plays a role in lessening the environmental impact of holiday consumption. By choosing pre-owned items, whether it's vintage clothing, books, or gently used electronics, you contribute to the circular economy, giving new life to items that would otherwise end up in landfills. This approach embodies the spirit of thoughtful giving and conscious consumerism, showing that meaningful, eco-friendly, and cost-effective gifts can be the perfect way to celebrate the holiday season.

Likewise look for local craftsmen and women who can make incredible gifts, even personalised! Whether it’s hand-painted Christmas baubles with the person’s name on it, handmade Christmas cookies or a gorgeous piece of art, look for locals who have amazing skills and are right down the road from you. You’re supporting someone’s income and your gift will be totally unique.