How to Save Money – Christmas 2025

The average British family will spend more than £800 at Christmas, with that in mind it’s no wonder that many families are starting to feel the pressure of Christmas looming over them! Many of us will be eager to spread joy and celebrate with loved ones, but it’s also essential to be mindful of our finances.

I believe that it is possible to be money-savvy during the festive period without limiting the fun, let’s explore some practical tips and strategies to help you enjoy a budget-friendly Christmas without compromising on the spirit of giving and togetherness.

It’s also important to remember that Christmas isn’t just about the presents and we should all remind ourselves and our family of that. It can still be an enjoyable time of year without the expensive price tag.

Save Money at Christmas

How to Save Money at Christmas

Budget and save early

Paying for Christmas out of December’s wage alone could prove to be quite a challenge, so it makes sense to save up as much as you can beforehand. Set a budget for your Christmas spending and stick to it. Determine how much you can afford to spend on gifts, decorations, food, and other holiday-related expenses.

  • Automatic savings accounts – These clever online bots calculate how much you can afford to save each month & move a manageable amount in to a savings account. I use Plum for my automatic savings as it updates me on my spending too.
  • Christmas sinking fund – It’s always worth opening up a separate savings account for your Christmas budget so that you can save throughout the year, and avoid the stress of paying for everything in one big chunk.

Each year I save up my Amazon credit to help me cover the cost of Christmas. Last year I managed to save £200 towards my Christmas shop by doing this. I earn Amazon credit by completing surveys and taking advantage of sign-up offers where possible.

Christmas savings schemes

These schemes allow you to pay in throughout the year & around Christmas, you’re given gift cards/cash amounts to spend in-store. Christmas Savings Schemes are fab if you need a little shove in the direction of monthly saving. Here are the different types of Christmas saving schemes:

  • Supermarket ‘Christmas savings stamps‘ schemes – These aren’t FSCS protected, but they do pay up to 4% interest! Another thing to note is that you usually have to spend the cash at the specific retailer (they’re effectively locking in your custom).
  • Credit unions’ Christmas clubs – These tend to be linked to an existing credit union account (which has FSCS protection). Some credit unions now offer cash ISAs as part of their savings range. Find your local Credit Union via the Find Your Credit Union website.
  • General Savings Account/ISA – Often your bank will not go out of its way to offer you the best savings options for you – you’ll need to do your research, check the savings options your current bank is offering & what interest rates/bonuses they have (in some cases it may be worthwhile switching banks).

Things to be cautious of when considering Christmas Savings Clubs:

Many Christmas savings clubs don’t pay interest and if the company that you’re a savings club member of were to go bust, your savings wouldn’t be protected by the Financial Services Compensation Scheme.

Christmas Money

Christmas Savings Schemes can be a great option if you want to save up throughout the year.

Loyalty cards

Loyalty cards can be a really useful way to save money on your shopping especially if you shop at a particular store quite often. If you’re not a fan of carrying lots of little plastic cards Apple and Google pay let you enter all your loyalty card details into the app storing them all in one place. Loyalty cards that would allow you to build up points that you could redeem around Christmas include:

  • Boots Advantage card
  • Sainsbury’s Nectar card
  • M&S Sparks card
  • Tesco Clubcard
  • Morrisons More loyalty card
  • Co-op’s membership scheme

You could save up any loyalty credit you earn to help you afford the cost of Christmas. Last year I saved my Boots Advantage points and Tesco Clubcard points to pay for gift-sets and a meal out. For my full guide to loyalty cards, including how much you can really earn from each scheme visit my loyalty cards guide.

Discount codes

Almost all retailers offer some type of discount when you shop with them. I use a few different websites to check for discounts when doing Christmas shopping, including:

  • Honey – a browser extension that automatically searches for discount codes when you reach the checkout of an online shop.
  • Voucher Codes – search for a retailer to find any available discount codes. You can also earn gift cards by shopping at various retailers.
  • Student discount – this one is pretty self-explanatory. Students can access some of the best discounts using the UNiDAYS or TOTUM schemes.
  • NHS discount – if you work for the NHS you’re also likely to be able to claim lots of discounts at various online and inshore retailers.

Make sure to check the terms and conditions attached to the discount code. Some codes may have minimum purchase requirements or exclusions on certain products, which could affect your savings.

Amazon’s deals

There are loads of money-saving sections on Amazon that the average buyer isn’t aware of and if used correctly Amazon can be a paradise for bargain hunters! Here are my favourite money-saving features:

  • Amazon Lightning Deals
  • Warehouse Deals
  • Certified Refurbished
  • Amazon Outlet
  • Coupons & Vouchers

Amazon Deals

Compare prices

I use a website called idealo to make sure I’m getting the best deal on the items I buy as Christmas presents. You can also set up price alerts for items you hope to buy in the next few months.

Earn extra money with side hustles

There are tons of websites that allow you to make money by completing offers, filling in surveys, watching videos, mystery shopping and more. You can also use the websites/apps below to get some bonus money.

  • Free Money Offers – You can earn £50+ free by signing up for the free services on my free money page!
  • Side Hustles –There are tons of ways to earn a little extra cash on your daily commute/in front of the TV/when you have some spare time. Find a side hustle that will work for you!
  • Work from Home Opportunities – If you need to improve your finances quickly finding part-time work that you can do from home could be a lifesaver! I do over 20 hours of work from home every week and I can’t recommend it enough!
  • Money-making smartphone apps – There are a whole range of apps that allow you to earn money on your daily commute, during your dinner break or just while you’re sitting at home.

In the lead up to the festive season, I run a Christmas money savings challenge. Get involved and earn some extra money before the big day!

Save money on your bills

Another way to save money throughout the year and give yourself more money for special occasions is by reducing your monthly outgoings; your household bills are a good place to start.

  • Mobile phone contract – To save money on your phone bill you should download Airtime Rewards. This clever app lets you earn money when you shop to pay off your mobile phone bill. Enter code D4E3EPAA when you download Airtime Rewards for a bonus.
  • Food Bill – Cut down your food bills by switching from brand-name products. You can also save money by using these apps to find free food and purchasing fresh food from the butchers and fruit and veg markets.
  • Water – The CCW (Consumer Council for Water) has a free water meter calculator that tells you if you can save money by switching to a water meter. Water companies must fit meters for free on request (not in Scotland) unless it’s justifiably impractical.

Households across much of England, Wales, Scotland and Northern Ireland can bag a range of free water-saving gadgets. Just head to the Save Water Save Money website, enter your postcode, and then click through to your company to see what water-saving freebies are available to you.

Freebies, DIY and secret Santa

I save £100’s by collecting freebies throughout the year to use as gifts or part of a gift hamper. As well as freebies you could consider making your own gifts or suggesting a secret Santa.

  • Free food & drink– you can collect a range of freebies from your local supermarket & more with the Shopmium app.
  • Free make-up – get sent samples to review by visiting my free make-up and beauty guide.
  • Free stocking fillers – freebies make great stocking fillers and are great gifts to yourself too. I discuss all the ways I find free stocking fillers.
  • DIY – Get creative and make your own gifts, cards, and decorations. Homemade gifts can be more meaningful and budget-friendly than store-bought items.
  • Secret Santa – Instead of buying gifts for everyone in your extended family or friendship group, consider organising a Secret Santa to reduce the number of gifts you need to purchase.

Claim cashback

Cashback is a cash reward that you receive after purchasing through a particular website. It just makes sense when it comes to buying Christmas presents! While Cashback is something I recommend regardless of the time of year it can be a massive help around Christmas.

TopCashback was the first cashback website I ever used, I’ve now made over £1500 with TopCashback. I also use Zilch, JamDoughnut and Chase to boost my cashback earnings. You can find out more about the cashback tools I use to save money in my guide to cashback.

Don’t get into debt at Christmas

Getting into debt at Christmas can have serious financial consequences that extend far beyond the holiday season. Give yourself the best start to the new year by sticking to your Christmas budget.

  • You don’t need more stocking fillers
  • You don’t need matching pyjamas
  • Your pet doesn’t need presents
  • A healthy & happy you is the best gift you can give your friends & family

By making conscious choices to avoid debt, you can celebrate Christmas with greater peace of mind, focusing on what truly matters: spending time with loved ones and creating treasured memories.

More ways to save at Christmas

Cover The Cost Of Christmas Without December’s Pay

#Foodbankadvent – Do Good This Christmas

Earn An Extra £100 For Christmas

Earn Amazon Gift Cards For Christmas

Where To Find Free Stocking Fillers

Earn Money Back On Your Online Shopping

Have you got any Xmas money-saving tips? I’d love to know how you save money during (or leading up to) the festive season. Please do share your top tips in the comments below…