Money
The smart Christmas shopping plan that can save you hundreds
Christmas cheer doesn’t have to come with a financial hangover. With a smart plan and a few savvy tricks, you can save a sackful this festive season.
By Carolyn Tate
Christmas is meant to be a season of joy and togetherness, not a time of financial stress. But most of us have felt that creeping sense of dread at this time of year as we watch our bank balances dwindle and credit card bills mount up. How do we balance that desire to surprise and delight our loved ones while also keeping our numbers in check?
I’ve done the hard yards tracking down some experts who can help us do just that. With a bit of planning and some clever strategies, you can still have a merry old Christmas without the January financial hangover.
Ready to take control of your festive spending and potentially save hundreds of dollars in the process? Let’s dive in.
Start with a realistic budget
The foundation upon which a stress-free Christmas is built involves knowing exactly what you can afford to spend. This isn't about being a Scrooge; it's about being honest with yourself and intentional with your money.
"Work out how much you can realistically spend without dipping into credit," advises Carrie-Ann McLean, budgeting coach and author of Budget Right. "From there, allocate amounts per person. This stops 'just one more gift' overspending."
McLean recommends her signature 70/10/10/10 rule:
● 70% of income goes to living expenses
● 10% to savings
● 10% to giving
● 10% to guilt-free 'splash cash'.
"Apply this rule to Christmas: you'll spend intentionally, give generously and avoid the dreaded January credit card bill," she advises.
Create your gift allocation guide
Once you know your total budget, it's time to get organised. A gift allocation guide is simply a list of everyone you're buying for, with a specific budget allocated to each person and a few gift ideas noted down.
"Write a simple list of who you're buying for, your budget for each, and a couple of gift ideas," says McLean. "Take this list with you shopping (or when browsing online) and stick to it like a checklist."
This tool might sound simple but how many of us actually do it? And it can be remarkably effective at preventing impulse purchases and keeping you focused on what really matters. Before you even start creating your list, McLean suggests checking what you already have.
"Check cupboards for unused candles, beauty sets or unopened bottles of wine that can be re-gifted or repurposed,” she suggests. “Often, you have more on hand than you realise."
Time your shopping strategically
When you shop can be just as important as what you buy. Major sale events like Black Friday and Cyber Monday have become prime opportunities for savvy Christmas shoppers.
"These sales dates are now firmly part of the Australian retail calendar and are perfectly timed for Christmas shopping," says Brendan Straw, Country Manager for Shopfully Australia. "Shopfully's latest data shows that 36% of shoppers plan to take advantage of this year's Black Friday sales, specifically to get ahead on early-Christmas shopping."
The key is to shop with purpose during these sale periods, not just because something seems cheap. "Avoid last-minute splurges by setting aside one or two planned shopping days," McLean recommends. "Use price comparison tools and sign up for email alerts from major retailers to grab deals on your planned items only."
Make technology work for you
The days of driving from shop to shop comparing prices are long gone. Digital tools can do the heavy lifting for you, helping you find the best deals without the legwork.
"Our recent data shows the majority of Aussies (81%) now research online before they buy," Straw explains. "While search engines are a popular starting point, digital catalogues are gaining momentum, with over a third of consumers (37%) using them to plan and compare their purchases."
Apps like Shopfully, Zyft, Daily Sale and OzBargain bring together catalogues, deals and promotions from hundreds of retailers in one place, which means you can instantly compare prices across stores.
"Shoppers are using them not just to hunt down promotions, but also to plan which stores to visit and even organise their shopping lists," says Straw.
Shop with Citro Rewards
One of the simplest ways to squeeze even more value out of your Christmas shopping is to use Citro Rewards. When you shop through the Citro Rewards platform at hundreds of popular retailers, you’ll earn cashback on your purchases. That means you can stack your savings: pick up your gifts during a big sale like Black Friday, then add cashback on top.
It’s an easy win that helps your budget stretch further without changing what you buy or where you shop. Over the course of your Christmas shopping list, those dollars can really add up – which is exactly the kind of bonus you want heading into January.
Rethink how you give
Sometimes the best way to save money is to change the game entirely. If you're buying for a large family or friend group, consider implementing a Secret Santa system.
"Each person draws a name from a hat and buys just one thoughtful gift within an agreed budget," McLean explains. "On Christmas Day, you still get the joy of exchanging presents, but the focus is on celebrating together while reducing costs, cutting stress and making the occasion more intentional."
It's also worth remembering that the most meaningful gifts often aren't the most expensive ones. "Some of the most appreciated gifts cost little or nothing, such as baked treats, framed family photos, or a handwritten voucher for a fun experience together," says McLean. "These options save money while keeping the spirit of giving alive."
Avoid these common traps
Even with the best intentions, it's easy to fall into familiar spending traps. Straw identifies three main pitfalls: "The first is leaving it too late, which often leads to panic buying and overspending – especially when stock runs low and express shipping costs add up."
Shopping without a plan is another danger zone, as is failing to compare prices when retailers are competing more than ever on value. Try to stick to your gift allocation guide, shop early during planned sessions, and use digital tools to ensure you're getting the best deal.
This Christmas, you don't have to choose between being generous and being financially responsible. With a solid plan, smart timing and the right tools, you can give thoughtfully, celebrate wholeheartedly and start the new year with your finances intact. Sounds pretty merry to me.
Feature image: iStock/sturti
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