How to save money for Christmas

Halloween's over — start the countdown. Whether you've already got your Christmas playlist on or you're letting out a heavy sigh, the holidays will be here before you know it.

Christmas often shakes up an emotional cocktail: the nostalgia of Grandma's cooking, the warmth of a fireplace — and sometimes, the stress of a dwindling bank account. The good news? There are ways to reduce the financial strain of the holidays and sidestep the January slump. All it takes is a little budgeting and strategic spending.

In this article, we'll give you some practical money management tips that'll help you save up for Christmas. We'll go over everything from budgeting strategies to affordable gift ideas that both your loved ones and your bank account will like.

We'll also show you how to put your money to work for you with Revolut Instant Access Savings. Not only will you earn interest on your balance, but you'll also have access to powerful budgeting tools that'll keep you on track all the way through the holiday frenzy.

1. Open a savings account for your Christmas money

Sure, you can keep your Christmas money in your current account, but let's be real — how likely are you to keep your holiday expenses in check when you've got access to all your spending money? It'll be much easier to stick to a budget when you have your Christmas fund in a separate account.

Plus, some savings accounts pay interest, so you'll be able to grow your money consistently over time. The key is to start saving early. Christmas might not be on your radar when it's still Easter, but the longer the money's in your account, the more interest you'll earn.

Revolut Instant Access Savings is one option to check out. You'll earn up to 5% AER¹ variable on your GBP balance, with interest paid daily and instant access to your funds. You're free to add money at your own pace and make withdrawals whenever you need to — without any fees, penalties, or minimum balances to watch out for (T&Cs apply).

With Revolut, you'll also get in-app budgeting tools that'll help you track your progress and meet your goals. You can create expense categories, set limits for each one, and get insights into your spending trends without spreadsheets or number-crunching. It'll make Christmas budgeting a breeze.

¹ The Annual Equivalent Rate (AER) shows the interest you can earn over 1 year. AER is compounded, so you’ll earn interest on interest already earned. Rates depend on your plan type, from up to 4% on our Standard plan to up to 5% on our Ultra plan. Paid plan subscription fees and T&Cs apply. Interest offered is subject to change and any interest earned is liable to the applicable taxes. T&Cs apply.

📚 New to savings accounts? Find out what AER means and how you can use it to calculate your interest earnings.

2. Set a Christmas budget

Creating a Christmas budget might seem like a lot of work on top of an already busy season, but it can save you a lot of stress (and money) in the long run. Here are some steps that can help you plan ahead.

• Determine your total budget.
  Start by deciding how much you can realistically afford to spend on Christmas this year. Consider your income, regular expenses, and any savings you might have. Be honest with yourself about what you can afford. If you've got some extra money in your current account, send it to your savings account straight away to set it aside.
• Break down your budget into categories
  Think about gifts, decorations, holiday meals, tickets to special events, and travel costs. Remember smaller expenses like wrapping paper and postage for cards — these can easily sneak up on you.
• Prioritise your spending.
  Decide what’s most important to you and allocate your budget accordingly. If travelling to see family is your top priority, you might allocate more to travel and less to gifts.
• Set specific spending limits.
  The more detailed your budget is, the easier it'll be to stick to it. Instead of having a general category for gifts, list each person and the amount you plan to spend on them.
• Track your spending.
  This is where Revolut's budgeting tools come in handy. Create spending categories in-app for each of your holiday expenses, and set up notifications to track your progress. This will help you see exactly where your money's going without the guesswork.
• Automate your savings.
  If you're just shy of your ideal Christmas budget, setting aside a part of your pay cheque for a few months may get you to your goal. Set a monthly savings target and automate transfers to your savings account to stay consistent. With Revolut Instant Access Savings, you can schedule recurring transfers right in-app — daily, weekly, or monthly. You'll also get spare change round ups, which is a feature that rounds your payments up and sends the difference to your savings account automatically. It's a great way to save without even thinking about it.
• Adjust as needed.
  Life happens — sometimes you'll need to tweak your budget. If you find that you’re overspending in one category, look for ways to cut back in another. The key is to stay flexible and keep your overall spending within your total budget.

3. Boost your income

We often associate the holidays with increased expenses, but this time of year can also bring new opportunities to make a little extra cash. Don't know where to look? Here are some ideas.

• Take advantage of seasonal jobs.
  The holidays are prime time for seasonal work opportunities. Many retailers, restaurants, and delivery services hire additional staff during this time to meet increased demand. Taking on one of these part-time jobs can make a big difference to your Christmas budget.
• Look for freelance work.
  If you have skills such as writing, graphic design, or programming, think about offering your services on freelance platforms like Upwork or Fiverr. The holiday season can be a busy time for businesses looking to complete projects before the end of the year.
• Sell handmade goods.
  If you’re crafty, consider selling handmade items like holiday decorations, jewellery, or baked goods. You can use websites like Etsy to reach a wide audience, or you can sell locally at craft fairs and holiday markets.
• Rent out space.
  If you've got an extra room in your home, consider renting it out on platforms like Airbnb. The holiday season is a popular time to travel, and you can earn extra income by hosting guests.
• Find gigs.
  Apps like Uber and Deliveroo offer flexible ways to earn money by driving or delivering food. Demand often surges during the busy holiday season, so these gigs can be a great way to make extra money.
• Sell unwanted items.
  Decluttering is always a good idea. Sell the things you no longer need on platforms like eBay, Vinted, or Facebook Marketplace.
• Offer services locally.
  These can be as simple as pet sitting, house cleaning, or snow removal. Many people are busy during the holidays and are willing to pay for these services to free up their time.

4. Cut back on your daily expenses

Small savings here and there can add up. The less you spend before the holidays, the more wiggle room you'll have in your Christmas budget. Here are some practical strategies to help you lower your everyday expenses without feeling like you're missing out.

• Cook at home more often.
  It's no big secret that cooking at home is generally cheaper than eating out. Try meal-prepping for the week to save both time and money. That doesn't mean you have to give up eating out entirely — just save restaurant dinners for an occasional treat.
• Cancel unused subscriptions.
  Look closely at your transaction history. You may automatically be paying for streaming services or other subscriptions you don't use. Think about cancelling the ones you can live without, at least for a few months.
• Look for low-cost entertainment options.
  Staying in is the new going out. Maybe host a film night at home with friends or have them over for a casual brunch. You can also look for free community events or have a picnic at the local park for a change of scenery. You'd be surprised how much you'll save without skimping on the fun.
• Save on transportation.
  Carpool, use public transport, or walk whenever possible to save on gas and parking fees.
• Work out at home.
  This tip is especially useful if you're paying for a gym membership you rarely use. There are lots of Pilates, yoga, and HIIT workouts on YouTube that can keep you moving — for free. You can also go for a run or a bike ride in the park. If you can live without the gym, consider these cost-effective replacements.
• Shop smart.
  Make a list before you go grocery shopping and stick to it. Look for sales, use coupons, and buy in bulk to save here and there. Also, consider switching to store-brand products to save money.
• Reduce your energy consumption.
  Turn off the lights and your electronics when you're not using them, and adjust your thermostat to save on heating costs. Small changes can add up to big savings on your utility bills.
• Give new life to old items.
  Instead of buying new things, consider repairing or repurposing what you already have. DIY projects can save you money — and give you a sense of accomplishment.
• Avoid impulse buys.
  Make a rule to wait 24 hours before making any non-essential purchases. This can help you make sure you’re only spending money on things you truly need.

5. Save on your Christmas travels

The holiday rush is notorious for inflating travel costs. But, with a little resourcefulness, you can slash your expenses and have more to spend on the things that matter most. Check out some tips to keep your Christmas travels affordable.

• Book early.
  Airlines and hotels often offer lower prices for early bookings. Start planning your trip well in advance to keep costs down. Setting price alerts can also help you grab great deals as they come up.
• Be flexible with dates, if possible.
  Flying on less popular days, such as Christmas Day or the day after, can be a lot cheaper than travelling on peak days. Travelling during off-peak hours, like early in the morning or late at night, can also lower costs. Plus, it can help you avoid long lines and crowded airports.
• Use budget airlines.
  Budget airlines often offer lower fares, especially for domestic flights. Be sure to check the total cost, including any additional fees for baggage or seat selection, to make sure you're getting a fair deal.
• Pack light.
  Avoid checked baggage fees by fitting your belongings in a carry-on bag, if possible.
• Bring your own snacks.
  Buying food at the airport can be expensive. Pack your own snacks and meals to save money during your trip.
• Book your accommodations with Revolut Stays.
  When you use Revolut for your everyday spending, you'll earn RevPoints that you can redeem to get money off any Stays booking. There are 1.8+ million properties across 200+ locations to choose from, and you can book right in-app in minutes (Stays T&Cs apply).
• Make the most of Revolut's travel-friendly features.
  If you'll be travelling abroad, Revolut's got tonnes of additional features that'll help you save during your holiday trip. That includes multi-currency debit cards that you can use to pay in 150+ local currencies with competitive exchange rates (currency exchange fees and T&Cs apply), ATM withdrawals with no Revolut fees within your plan's limits (plan fees and Personal T&Cs apply), and eSIM data plans starting from £1 (eSIM T&Cs apply). There's lots to explore, so go check it out.

6. Do your Christmas shopping strategically

Christmas shopping is a vibe. The garlands, the lights, Mariah Carey playing in every shop... It can be easy to get swept away and splurge a little more than you intended. Here are some ways to keep your Christmas spending in check — while still joining in on the fun.

• Start early.
  Get a head start to take advantage of pre-holiday sales and avoid the last-minute rush. Early shopping also gives you more time to compare prices and find good deals.
• Use cashback and rewards programmes.
  Online retailers and shopping apps sometimes give you a percentage of your purchase back in cash or points, which can add up to significant savings.
• Shop online.
  Online shopping allows you to compare prices easily and snag great deals. Many retailers offer free shipping during the holidays, and you can often find exclusive online discounts. Just be sure to factor in shipping times to ensure your gifts arrive on time.
• Buy in bulk.
  This can come in handy if you have many people on your gift list. You might be able to save money by buying things like gift cards and chocolates in larger quantities — and who doesn't love those?
• Shop on discount days.
  Take advantage of Black Friday, Cyber Monday, and other holiday sales events. If you can wait, consider doing some of your shopping after Christmas. Post-holiday sales often offer big discounts on seasonal items. Belated Christmas gifts are lovely surprises, and you can also stock up for next year.
• Consider group gifts.
  For larger gifts, think about going in with friends or family members to split the cost. This can make expensive items more affordable and ensure everyone gets a gift they'll love.

7. Try DIY gifts and decorations

DIY's where it's at. Handmade gifts and decorations won't just save you money, but they'll add a personal touch to your holiday. Everyone loves one-of-a-kind items made specially for them. Here are some fun ideas you can use for presents or decor — or both.

• Homemade candles
  Create personalised scented candles using essential oils and glass jars for a cosy gift.
• Handmade soaps
  Make fragrant soaps with a soap base, essential oils, and dried flowers.
• Knitted scarves
  This one's both functional and stylish. Customise the colour palette to fit their wardrobe for bonus points.
• Photo albums
  Memories are priceless. Print some of your favourite photos with loved ones, and arrange them in a scrapbook. You can also create a digital version.
• Mason jar gifts
  Fill these jars up with ingredients for hot cocoa, cookies, or bath salts.
• Paper snowflakes
  If you've got kids at home, they'll love making these with you. Hang them up around your living room to set a wintery mood.
• Pine cone wreath
  Put together a rustic wreath using pine cones and a wire frame.

8. Don't stress about the small stuff

Even the best-laid Christmas plans go wrong sometimes, and that's okay.

Missed your flight? Catch the next one and readjust the rest of your budget. Years from now, you won't remember the expensive gifts or fancy holiday events — you'll remember the laughs you had in the midst of all the chaos.

And you'll have a sense of accomplishment knowing you made it through the holiday season without breaking the bank.

Save up for Christmas with Revolut

Ready to build your Christmas fund? The sooner you start, the sooner you'll reach your savings goal — and Revolut Instant Access Savings can help you get the most out of your money.

You can grow your savings on auto, make one-off transfers, and even save while you spend with spare change round ups on your purchases — all while racking up interest daily. You'll also get in-app analytics tools that'll help you track your progress and meet your goal.

With two-factor authentication and biometric technology, your account offers a safe space to keep your savings. For extra security, you can enable Wealth Protection to require selfie verification every time you withdraw money.

It's a great way to watch your balance grow — for this holiday season and many more to come.

📚 Saving up for something else? Check out our guides and explore some little-known money-saving tips.

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