How to have a great family Christmas without breaking the bank

This year, nearly half of UK parents (46%) say they’ll put their children’s Christmas experience ahead of everything else, even if it means cutting down on their own comforts.

That’s according to new thinkmoney research, which found that many families are making tough choices to keep the festive magic alive.

After another year of rising prices, it’s no surprise that budgets are stretched. But what’s striking is just how far parents are willing to go:

• Nearly a third (29%) say they’ll socialise less
• 27% will skip their own treats
• 22% will sacrifice trips or weekends away
• Roughly one in ten (9%) are cutting back on essentials like food and heating

For many parents, it’s not just about the money. Christmas comes with an emotional toll too. Almost three in four (72%) admit they’re dreading the moment the Christmas lists start appearing, with high-ticket top wish-list items including smartphones, games consoles, and premium tech.

Protect the magic of Christmas without blowing your budget

Vix Leyton, consumer expert at thinkmoney, says: “Parents are trying to give their kids the kind of Christmas they remember from their own childhood, but they’re doing it in completely different economic conditions. You can’t explain inflation or energy bills to a six-year-old who just wants Santa to bring the same toys their friends are talking about.

“What’s really striking is how much people are willing to give up to make it happen; nights out, treats, even warmth at home — and it’s coming from love, not indulgence.

“The challenge is finding the balance. You can protect the magic without breaking yourself in the process.”

Here are Vix’s top tips for making Christmas special without overspending.

Get ahead of the gift wish lists

Don’t wait for a lengthy wish list from your children. Instead, decide what you can afford and work backwards. Ask your children what they’d love most this Christmas and focus your budget on one meaningful gift without feeling the pressure to tick off every item.

Social media can make it feel like you’re falling short, but remember, people don’t post their real lives on there, just the highlight reel.

Stack your savings

Use cashback sites like Quidco or TopCashback and extensions like Honey to search for voucher codes before you buy. Some bank accounts offer built-in discounts too.

For example, here at thinkmoney, our SmartPlus account includes PlusSave which gives up to 20% off gift cards for big-name retailers like Argos and Morrisons.

Use Black Friday deals to get ahead of your shopping

Black Friday can be a brilliant way to buy Christmas gifts cheap as many retailers offer great deals. But you should still shop smart. Make a list, set price alerts, and check historical prices on sites like PriceSpy to see if the deal is real. Stick to your list; an impulse buy on a discounted item is still overspending.

Swap for own brand goodies where you can

Supermarket own-brands often win blind taste tests for festive staples like Baileys, crisps, and chocolate. Try the own brand version and see if anyone in the family notices. Chances are, they’ll be just as happy.

Vix adds: “Swap where you can, use the tricks that make your budget stretch further, and let go of the idea that spending more equals doing it better. You’re not cutting corners; you’re just cutting out the bits that don’t matter.”

Go undercover online

When shopping for gifts, use an incognito browser or clear cookies before you buy. Retailers use browsing history to bump prices or hide voucher code boxes. But a quick reset can save you money.

Check your job perks

Many workplaces and unions offer discounts; check your employee benefits or see if you’re eligible for a Blue Light card. You might find reduced prices on entertainment, supermarket gift cards, or major retailers just by logging in.

Trade in what you’ve outgrown

Retailers like CeX and MusicMagpie offer trade-in credit for tech, games, and toys. If you’re upgrading a console or smartwatch, check for trade-in options first. Sites like Vinted are also great for selling clothes and toys; this is a great way to make the Christmas budget stretch even further.

There's lots of ways to make Christmas magical without overspending. If you're struggling with the basics, take a look at our cost of living hub which offers lots of tips and resources on ways to save on bills and everyday expenses.