Every year, stressed Aussies flock to forums posting, “Help! I can’t afford Christmas this year.” You also might feel the burden of all these expectations to splurge on Christmas—but reality might not actually be what it seems. There are tonnes of practical ways you can manage Christmas costs and make it even more special than you ever thought! So before you get a Christmas loan, check out our tips on having a frugal yet meaningful Christmas.
Overview
- Find cheap activities for the kids
- Celebrate with free events
- Keep festive at home
- Communicate with your family
- Stick to the essentials
- Reduce, reuse, and recycle!
- Make gifts and decorations
- Set a budget and plan ahead
- Pick up a side hustle or do a clear-out
- Ask for assistance when you can’t afford Christmas
10 ways to manage Christmas costs
At the end of the day, Christmas is a time for family and togetherness. Memories are what make it special, not a big budget. You can cut down on the unnecessary stuff, find new and cheap traditions, and let your creativity shine with our top tips.
1. Find cheap activities for the kids
Keeping the kids entertained over the school holidays leading up to Christmas can be quite anxiety-inducing. But you don’t have to spend a lot to do a lot. There are always cheap school holiday activities to explore, such as zoo trips, fruit picking, local parks and sights, and more!
2. Celebrate with free events
Do you know what is better than cheap? Free! If you need more activities to fill up your time with the family, there are always events in the local community. You can:
- Go Christmas lights sightseeing
- Attend community Christmas carols
- Join in library activities
- Visit your local shopping centre for some kid-friendly activities.
Check your local Facebook groups or city calendar to find what’s on near you. If you’re planning on having a smaller Christmas this year, invite your friends and extended family to these events or the activities in the previous section.
3. Keep festive at home
A little positivity will go a long way. Spend the evenings leading up to Christmas and Christmas itself with your loved ones by watching Christmas movies, playing games, or simply sitting down for a chat with hot chocolate and snacks.
Focus on creating memories and building relationships. Find moments where you can have fun, do things as a group, and get creative! The kids will forget that you can’t afford Christmas.
4. Communicate with your family
Sometimes, all you need is to be honest. Let your family and friends know that Christmas is a little tough this year. Your loved ones will understand how expensive and stressful Christmas can be. They might even help you find solutions. It’s a lot easier to make the effort together than alone.
Together, you might decide on a no-buy Christmas, a price limit, or Secret Santa for gifts, a potluck for dinner, or staying home and doing a small Christmas. You never know that others might be feeling that they can’t afford Christmas either.
5. Stick to the essentials
There are lots of little additions to Christmas traditions, like hats and bonbons, that might seem cheap—but they all add up. But a lot of the time, they’re not the most memorable part of Christmas and end up getting thrown away anyway!
So, consider skipping these things for Christmas this year:
- Gifts for coworkers, friends, acquaintances, or extended family
- Christmas crackers and themed dinnerware
- Christmas cards and tags
- Every item on the kids’ wishlist
- Ugly Christmas sweaters, shirts, or pajamas
- Holiday-themed house decor like tablecloths, tea towels, and cushions
- Expensive traditional Christmas foods
- Travel (for extended family or holiday)
- Non-food stocking stuffers
Don’t feel obligated to do every tradition or buy everyone a gift! These can be the sort of things that make you feel like you can’t afford Christmas.
6. Reduce, reuse and recycle!
You don’t need to buy new things every year. Reuse last year’s decorations, regift things you haven’t used, and make use of ingredients you already have. When it comes to wrapping paper, use the old ones sitting in your cupboard or recycle your paper waste. It’s also better for the environment (and your storage space) to use what you already have, especially if it’s only once a year!
7. Make gifts and decorations
Just because you can’t afford Christmas gifts that are big and fancy, doesn’t mean you can’t make something special. Even if they are cheap to make, DIY gifts give a personal touch that is just invaluable.
Ideas include:
- Baked goods (consumables are always a safe bet!)
- Upcycled op shop finds
- Knitted or crocheted goods
- Framed collage, calligraphy, or art
- DIY bath bombs or body scrub
The same goes for decorations, you can make the experience meaningful by making it together. Here are some ideas:
- Recycle old blankets to make Christmas stockings
- Paper garlands
- Salt dough tree ornaments
- Music sheet or magazine origami
8. Set a budget and plan ahead
Set a realistic budget. If everything you want doesn’t fit into your budget, there are always alternatives, like DIY, combined gifts, or cutting costs in other areas.
Make a list of what gifts you want to buy and food you want to cook in advance. Keep everything within your budget, changing to cheaper alternatives or cutting out what you can. With your list, make sure to:
- Take advantage of sales: Black Friday sales, closing down sales, and clearance stock are a great way to save on costs.
- Consider buying secondhand: There are some great things on Facebook Marketplace, Gumtree, or your local op shop that you can get at a major discount — or even free.
- Think about what you can DIY or upcycle: Consider if items are cheaper to buy materials for and make.
- Shop online: Compare prices, use sign-up discounts, and research coupons.
- Include shipping prices: Shipping prices can really add up if you don’t keep track.
- Include everything you need: Avoid impulse buying and stick to the budget!
- Gifts don’t have to be big either! If you need some ideas, there are plenty of cheap and thoughtful gifts you can buy for your loved ones.
9. Pick up a side hustle or do a clear-out
Sometimes you need that extra little boost in your budget to get everything you want. So, there is plenty you can do for some extra cash for Christmas.
If you have a specific skill or are just generally handy, consider hiring out your services to the local community for some extra jobs over the weekend. If you’re a little low on free time, grab the family and do a big clear-out of your storage and wardrobe. You can sell your stuff at a garage sale, market, or online marketplace. You might even come across some things you can use for Christmas gifts or decorations.
10. Ask for assistance when you can’t afford Christmas
If this year looks like it’s going to be pretty tough for your finances, sometimes all you need is to ask for help. It can be as simple as reaching out to a family member or friend. You might ask them to host this year or do combined presents. There could still be ways you can join in on the Christmas traditions when you can’t afford Christmas.
Other ways you can seek assistance include food hampers from local charities or churches, or gift appeals.
Should I get a Christmas Loan?
Everyone’s situation is different, so getting a Christmas loan might not be for everyone. Before applying, take the time to review your budget and consider whether the repayments will fit comfortably within your financial plan after the holidays. A loan should help relieve financial stress—not add to it.
However, if you’ve already reduced your expenses, explored other options, and still find yourself short on funds for essential holiday costs, a Christmas loan may be an option to consider. It could help you manage upfront expenses—such as gifts, travel, or Christmas meals—by spreading the cost over a manageable repayment period instead of relying on credit cards or going without.
It’s important to explore all your options carefully before making any financial decisions and ensure that taking out a loan is the right choice for your circumstances.
Need a little extra help this Christmas?
If you need a little extra to get you through the holiday season, Swoosh is here to help. Our Christmas loans are 100% online, with flexible repayment options and no hidden fees.
Apply online today and enjoy the festive season!
Affording Christmas FAQs
Where can I apply for free Christmas gifts in Australia?
The main places to apply for free Christmas gifts, hampers, or support are The Salvation Army (Salvos), St Vincent de Paul Society (Vinnies), and GIVIT. You can contact these organisations to see what kind of support is available to you.
Make sure to apply early, as charities close their applications a few weeks before Christmas.
What is a realistic budget for Christmas gifts?
The average Christmas gift budget is around $800 to $1,000, excluding food and decorations. But that might not be realistic for everyone.
A realistic budget for gifts will depend on your income, expenses, and savings. Consider how many people you are buying gifts for, and how much you can reasonably spend on each person.
What is the 7 gift rule of Christmas?
The 7 Gift Rule of Christmas is a simple way to make Christmas presents more intentional and avoid buying lots of random gifts. You choose one gift for each of seven categories:
- Something they really want: something they’ve been wishing for.
- Something they need: something useful they genuinely need.
- Something to wear: clothing, shoes, accessories, pajamas, etc.
- Something to read: a book, magazine, journal, or audiobook.
- Something to do: an experience, activity, game, class, or outing.
- Something for the family: something everyone can enjoy together, such as a board game, movie-night kit, or family outing.
- Something to give: something that encourages generosity, such as a donation to charity, a gift to someone else, or supplies for a giving project.
