5 ways to cut the cost of Christmas

The festive season is undoubtedly the most expensive time of year for most families. With just five weeks of shopping time to go, many households are bracing themselves for the budget to get well and truly blown. You don’t have to get into debt to afford a fantastic family Christmas, though. Here are five tips to help you have a great Christmas for less.

Set a festive budget – and stick to it

The first step to a cheaper, but equally cheery Christmas is to draw up a festive budget. To do this, you should first decide how much you can afford to spend on this year’s celebrations.

Then, make a list of everything you need to buy and work out whether you will have enough to make all the necessary purchases. In most cases, the answer to that question will be no. But don’t despair – it is at this point that you need to start looking at where you can cut costs, before the money is spent.

So go back through your list – do you really need everything on it or could you manage with cheaper alternatives?

Every week, Clare Francis, financial journalist and editor of comparison site moneysupermarket.com will offer tips and advice on all things money-related to help iVillagers make the most of their hard-earned cash. From energy bills to car insurance; credit cards to children’s savings accounts; mortgages to discount vouchers Clare will show you how to make sure you’re getting the best deal.

See also:
- 5 ways to cut childcare costs
Get creative with gifts and decorations

Making your own Christmas decorations can save you money and make your home look better over the festive season. It can also be a lot of fun, with younger members of the family likely to enjoy raiding the local park for pine cones and creating paper garlands.

Giving handmade gifts, meanwhile, shows the person receiving them that you care enough to spend time and effort on their present. Homemade jam or cookies, for example, can look great nicely wrapped.

Personalised gifts such as a family photo in a pretty frame will also often work out cheaper – despite often meaning more to the recipient. And for colourful gift tags, why not cut up last year’s Christmas cards?

See also:
- 5 ways to cut childcare costs
Think outside the box

Rather than buying a gift for every member of a family, choosing something that will appeal to parents and children alike is a great way to save money.

Board games or puzzles, for example, are an inexpensive option that will be loved by the whole family.

For further savings, write your Christmas cards early, hand deliver those you can and post the rest second class (December 18 is the last day for that this year). Failing that, you can also opt to send e-cards that both save you money and are better for the environment.

See also:
- 5 ways to cut childcare costs
Plan menus ahead

The old adage 'waste not, want not' is just as relevant today as it was 100 years ago. UK households are estimated to throw away more than seven million tonnes of food each year, costing the average family with kids a massive £680.

So plan your food and drink ahead to cut out wastage, while remembering that sometimes it pays to spend a bit more upfront. A bigger turkey, for example, will cost more but could be worth it if you use the leftovers wisely. So have a look online for turkey recipes that might appeal to your family.

See also:
- 5 ways to cut childcare costs
Use a cashback credit card

Cashback cards reward you by repaying a percentage of the amount you spend. And the good news is that there are some great deals available.

Barclaycard’s new Cashback Card, for example, offers a market leading 6% cashback in the first three months on your top five purchases, up to a maximum of £120. Don’t be tempted to borrow on the card, though. The representative APR is 24.6% (variable) – including an annual fee of £24.

The American Express Everyday Cashback Credit Card, is another good one, offering 5% cashback during the first three months up to a maximum of £100.

What’s more there is no annual fee on this card. It is still important to pay your balance in full though as the interest rate you’ll be charged if you don’t is a representative APR of 19.9% (variable).

See also:
- 5 ways to cut childcare costs
Next Up: 5 reasons to apply for a Christmas credit card now
Some of you will have started your Christmas shopping; others will be waiting until the last minute dash.