How to cut Christmas costs without cutting the fun - get creative and second hand
“The cost of living is biting everyone, and Christmas can feel like a burden rather than a joy,” agrees finance expert Holly Mackay, founder of the consumer financial website Boring Money.
But Rajan Lakhani, a money expert at the smart money app Plum promises that although times are tough, there are many ways to cut festive costs.
Here, the experts give some tips…


1. Set gift spending limits
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Hide AdWhen it comes to buying gifts, set a spending limit for each person, and make sure your gift list is as small as possible, says Lakhani. “This year, my wife and I have agreed on a budget to stick to and to focus on getting one gift for each other that we’ll enjoy,” he says. “We’re doing the same for our kids – it will help them appreciate their presents more.”
2. Gift pre-loved
Consider buying second-hand gifts, especially items like DVDs, books and toys – children, particularly younger ones, won’t know they’re pre-used and you’ll save a stack of money. “It might also benefit the environment, as you’re reducing waste,” Lakhani points out.


And preloved expert Rebecca Alford, of second-hand books website Wob (wob.com), says buying everyone in the family a second-hand book each will be a cheap but lovely gift. “In Iceland,” she says, “books are the most popular Christmas gift – and the Jolabokaflod (‘Christmas book flood’) tradition is to give everyone in your household a book on Christmas Eve, then spend the evening quietly reading with hot chocolate.”
3. Be strong
All parents want to buy everything on their child’s Christmas list to see their delighted faces on Christmas morning. But Lakhani warns: “If you’re struggling to afford something for your children, don’t give in to pressure – buying them something might make you all feel better in the short-term, but it will cause more hardship over the long-term and means you can’t get what your child really needs, rather than wants, in the future.”
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Hide AdHe says honesty is the best policy when talking to children about money, and suggests parents explain to children why Santa can’t afford many presents this year.
4. Make your own decorations and encourage the kids to get creative
With a whole host of Pinterest and YouTube tutorials available, there’s no reason you can’t decorate your house or Christmas tree for under a fiver, says Alford. “Plus, an afternoon making decorations is a nice way to spend time with family too.”