I love Christmas! It’s one of my favourite times of the year. What I don’t love is how our culture has turned this beautiful season into an over-commercialized spend fest. In today’s post, we’ll look at 5 ways you can be both festive and frugal. It is possible.

It seems the Christmas season starts earlier every year. At one time, you could at least get through Halloween before being hit with the Christmas ads urging you to part with your hard-earned cash. These days, we’re lucky to get past Labour Day. I’ve seen Christmas decorations in stores in August. I’m all for planning ahead but that’s a bit much!

Is this the year that will make us rethink Christmas and get back to what really matters? Let’s hope so.

This post was originally published in December 2020 and updated in October 2023.

5 ways to be festive and frugal

Set a budget and stick to it

Having a budget is the first step to prevent going overboard this Christmas. Decide up front how much you’re willing to spend on everything Christmas-related and stick to it. Remember to include things like meals out, extra groceries and baking supplies in addition to gifts.

When you shop, avoid impulse spending by leaving your credit cards at home and using debit or cash instead.

Another trick to contain your spending is to shop early, and then stop. Once you’ve checked everything off your list, avoid the stores! If you go to the mall, you’ll find more stuff and end up spending more money.

Although it’s an important first step, having a budget will only go so far. You need to make a conscious choice to do less. Let’s look at some options.

Cut down your gift list

Are you still buying gifts for friends, extended family, neighbours, teachers, hairdressers…? Maybe it’s time to stop.

This is an example of a habit we get into that is hard to break. No-one wants to be that person who stops buying gifts or suggests not doing it anymore.

For years, I bought gifts for my friends. When my friends got married and had kids, I bought gifts for their kids. Every year, I found it harder and harder to find the right gifts. When we got together for Christmas, it was crazy. The kids got so much stuff. We didn’t have kids at the time. I worried my friends would think I was just being cheap and not wanting to buy gifts for their kids because we didn’t have kids.

After our first daughter was born, I saw an opportunity. Now that we were parents too, it was easier to bring up the idea of not buying gifts for the kids. I suggested we stop, reminding them we were all very fortunate and our kids didn’t really need more toys. Instead of gifts, I suggested we donate to a toy drive or other charity to help families in need.

Guess what! Everyone agreed. In many ways, it was a relief for everyone.

If you’re thinking about having this conversation, just do it! Chances are, other people feel the same way but don’t want to bring it up.

Spend less on the gifts you do buy

You won’t be able to avoid buying presents completely. Here are some ways to spend less on the gifts you do buy:

• Consider making your gifts, if you’re into crafts or baking. A homemade gift is always special.
• Think about regifting. Chances are you’ve received gifts in the past that are sitting unopened in a closet somewhere. If you’re going this route, check out Regifting rules – When it makes sense and how to do it right.
• Make up some redeemable coupons for things you can do for people. Some ideas:
  • An evening of childcare.
  • Shoveling snow or cutting grass.
  • Making a special dinner.
• Buy gifts at the dollar store or thrift store.
• Check your loyalty points balances on your credit cards or store loyalty programs. You might have enough points to offset some of your Christmas spending.

Focus on presence not presents

Memories come from doing fun things together, not from the presents you exchange. I’ve done a lot of decluttering, and sadly I don’t remember who gave me some of the things I’ve accumulated over the years. But I always remember special times and outings with family and friends.

Make a conscious choice to make this Christmas more about presence than presents. Here are some fun things you can do together that are free:

• Walk around your neighbourhood to look at Christmas lights and decorations.
• Go skating on a community rink.
• Plan a night to watch Christmas movies and eat popcorn.
• Volunteer together for a local cause.
• Host a board game night.
• Attend a church service.
• Go caroling.

You might have so much fun that you’ll decide to make some of these things an annual tradition.

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Do less

The final tip to be festive and frugal is to do less. If you’re like me, there are things you do every year out of habit.

Sit down and make a list of everything you need to do between now and Christmas. Then, ask yourself why you need to do everything on that list. Would anyone care, or even notice, if you didn’t do it? Would not doing it reduce your stress?

Some ideas to consider…

• Instead of a dinner party, suggest an afternoon or evening get-together with some light snacks.
• Make your family dinner or get-together potluck. You’ll be able to spend less time in the kitchen and more time enjoying your guests.
• Send e-cards instead of printed cards. Every year, I write dozens of cards and letters. It takes time and costs money. This year, I cut down my list significantly.
• Say no to some invitations. If spending time with Aunt Betty and your annoying cousins isn’t your idea of a good time, graciously decline the invitation.
• Cut down on baking. I’m not a big baker but I always seem to have too much and end up eating it after Christmas, and feeling guilty.

Doing less will save money and give you more time to look after you!

Do you have other ideas for a festive and frugal Christmas? Tell us below.