The Christmas season on a budget

Is it possible to survive the silly season on a budget without becoming known as the Grinch? Yes, it sure is.

A collective sigh of relief can be heard in workplaces across the nation when the Christmas season finally arrives. The sweet aroma of summer and its promise of rest and fun, brings a lightening of moods, as we look forward to spending quality time with family and friends. 

But end-of-year good cheer can place a massive weight on the hip pocket, as the list of gifts to buy and events to attend quickly mounts. 

Here are a few tips for enjoying the summer break, while protecting your financial garden.

1. Plan a budget ahead

The best way to avoid last minute spending is to plan your budget for the holiday break. As author Dave Ramsey advises, “a budget is telling your money where to go, instead of wondering where it went”. 

Use an Excel spreadsheet, or one created for you, to work out essential budgeting items, such as your rent/mortgage repayments, utilities and insurances and how much you have left over for your Christmas spending. One method of assuring you’re not going to end the Christmas season in the red is to put aside money in a dedicated savings account, so that you have money to access over the holidays when you need it.

2. Share it with your nearest and dearest

Once you’ve set a budget, share this with your family and friends and be honest about what you’re able to spend over the holidays. If your loved ones know that you’re being wise financially, they’re more likely to be understanding about your financial diet over the holiday season.

If you’ve got kids, include them in the discussion about your goal for holiday saving. Teaching financial literacy is an important life skill and will help them be grateful and accepting of your budget for family gifts.

3. Give what you can afford

With Australians spending nearly $51.5 billion on retail items over the Christmas period last year, a key to Christmas budgeting is to plan your gift giving. There are plenty of ways you can be thrifty from Secret Santa and “child only” gift rules at family events to making homemade gifts and shopping around online for sales. 

Ultimately, stick to financial guru Sue Orman’s rule for gift-giving: 

4. Keep the Christmas spread healthy

The average Aussie gains 0.8-1.5kg over the summer period, largely due to excessive food and alcohol consumption, so why not curb the Christmas binge, by having a healthy eating rule over the holiday break? 

Not only will you save money but you’ll enter the New Year a step ahead. Have a 'bring a plate' rule at family events and cut back on alcohol consumption. Making your Christmas spread simple and healthy will keep you saving.

5. Fill the days with affordable fun 

With many teachers enjoying a holiday break of between six to eight weeks, another costly expense in the summer season can be figuring out how to have fun without breaking the budget. Consider inexpensive activities like house swapping with friends, going on an adventure to somewhere new in your area or, if you’ve got kids, play dates at the park or camping in the backyard. 

Check your local Council’s website for free festivals and events in the summer period and wherever you go, catch the train, ride a bus, or tram, and not only save petrol money, but help create a sustainable world. The golden rule is this: whatever you do, bring a picnic, thermos and drinks. All of those food purchases when visiting different people and places can quickly mount up. 

6. Collect memories, not things 

Whatever you’re planning for the holiday season, be sure to be good to yourself and recharge by doing things you enjoy, so that the bucket is re-filled ready for the next year’s demands. 

Collecting stories and experiences, rather than overspending, will leave you with a treasure trove of anecdotes for sharing with students and colleagues in the new school year. A slight adjustment to your spending habits in the present, can develop into an improved financial future.

Looking to enter the Christmas season with your finances in better shape?

Then why not open our all-in-one Everyday Direct account, which provides flexibility, security and hassle-free online transactions.

You could also set up a regular savings plan with our Online Savings account, and be rewarded with our higher interest rate.