What to do if you can’t afford Christmas?

With the festive season seemingly getting underway earlier and earlier each year, by the time the big day comes around, excitement in some households may well have exceeded fever pitch. But what do you do if you can’t afford your dream Christmas?

Well, first of all, you’re far from alone. Our 2023 Christmas survey found the festive plans of over three quarters of people will be affected by the cost-of-living crisis this year. That means there are a lot of families out there looking for cheaper ways to celebrate.

With that in mind, we’ve come up with some ideas on how to keep costs low and spirits high.

Be honest about your money worries

We don’t always like talking about money but, as our survey shows, a lot of people are struggling, and talking about the issues we’re facing can be helpful for everyone.

Open up to family and friends and let them know you can’t afford to splash out on extravagant presents and food. The chances are some of them will be in the same boat and talking about your problems can be a weight off your mind.

It can be particularly tough when you’re a parent and your child has their heart set on a specific present you can’t afford.

Again though, it may help to be totally upfront with them about how much you can afford.

If you know other people will be buying your child a gift, you can ask them to give you money towards the present your child wants instead. Or you could ask friends and family to give money or a gift voucher to your child so they can save up for the item they’re after.

It’s always nice for children to have something to unwrap on Christmas Day. So if your child is getting money, why not wrap up each donation along with a small gift (a chocolate bar or candy cane will do)? That way they’ll still have the pleasure of unwrapping some surprises.

Buying presents

There are various ways you can cut costs when it comes to buying gifts:

Agree a spending limit

When you're buying for other adults, decide how much you’re going to spend on each other and stick to it. This can make budgeting for the big day easier and avoid the embarrassment you feel when it’s obvious someone has spent miles more than you.

Secret Santa

If you have a group of friends or family members to buy gifts for, why not go down the secret Santa route? That way each person only needs to buy one present. And again, you can set a strict spending limit.

Toy and clothes swaps

Swapping toys your kids don’t play with anymore or clothes you never wear is a great way to cut costs. Everyone gets something that’s new to them and you benefit from a bit of a clear out too.

Buy second hand

You can pick up some great items at charity shops and many items are as good as new. Find books, jewellery, clothes and homeware for a fraction of the original price.

Christmas dinner

If you’re having people round to eat on Christmas Day, why not ask everyone to bring a dish. This should spread the cost and reduce your workload.

Make your own traditions

Your Christmas Day doesn’t have to be like the ones you see in the movies. Make your own traditions!

You can spend all the money in the world and still have a miserable Christmas. And you can have the best day ever without spending a fortune.

If you can’t afford loads of expensive gifts for your kids, why not do a present hunt? Hide small presents around the house and set clues to their whereabouts. This will ramp up the fun levels for younger kids and the joy they get while opening their gifts will last longer.

Eat what you want! Who says you have to have turkey? If you want curry for Christmas dinner, have curry! You can almost certainly get a takeaway for less than you’d spend on turkey and all the trimmings.

Go for a family bike ride/run/walk/rollerskate! Or get ideas for free family games you can play from the internet. It’s about the memories you make, not the cash you splash.

Make a Christmas that’s unique to you and your loved ones!

Get help

Soaring prices and interest rates took most of us by surprise. It’s not your fault if you’re struggling to cover your energy bills or pay your rent. A whole host of costs are rocketing, and wages and benefits just aren’t keeping up.

So if you need help, ask for it.

Check you’re getting the benefits you’re entitled to with our free benefits calculator.

Get in touch with your local council to see what cost-of-living support they’re offering (all local councils in England have been given money through the household support fund to help those struggling).

And if you can no longer afford your debts, find out how we can help.