6 tips for an affordable and memorable Christmas

Christmas: it’s the most wonderful time of the year ... but it can also be the most expensive. Between all of the festive gatherings, gift buying and, if you’re lucky, that summer holiday you’ve been planning, it’s no surprise if your bank balance leaves you feeling not so merry and bright. 

The good news is that there are plenty of ways to embrace the Christmas spirit that don’t require you to be paying off a hefty credit card bill long into the new year. From DIY decorations to getting savvy with your spending, here’s how to create magic on a budget.

1. Plan your holiday budget (before your spending spikes) 

Budgeting is all about finding a system that works for you to help you be more mindful with your money. If you don’t have one, now is a good time to try any number of these popular methods. Take what you like, leave what you don’t and consciously create a system for managing your summer cash flow that works for you.

Budget by “buckets” 

The buckets method is about setting money away in separate “buckets” (or bank accounts) for your needs, wants and savings. There’s also a rule known as the 50–30–20 budget, which says that you should put 50 per cent of your income into one bucket for your needs, 30 per cent into another for your wants and the last 20 per cent into a bucket for savings. These percentage splits might not work for you so tinker to find out what suits your needs best. 

The wish-list method

Start by making a list for the holidays with everything you’d like to buy. Then, rank the items based on importance to you. This way, you can make sure the most meaningful or necessary purchases are prioritised. As you work through the list, you’ll focus on what matters and avoid overspending on lower-priority items. 

The tracking technique 

This approach is not so much about setting hard limits as it is checking to see what you are spending your money on. The key is to ensure your outgoing expenses align with your values and goals. At the same time, you can also track your income and resulting budget surplus or shortfall during that period.

Budget-friendly gift planning 
Set a gift budget in advance with friends and family and shop early or during sales to avoid last-minute overspending. This way, everyone stays on the same page, and you can focus on finding thoughtful gifts without breaking the bank.

2. Be clever with credit

Using credit card reward points during the holidays can be a smart way to ease budget pressure and make festive spending more manageable. Eligible CommBank credit cards offer cashbacks or reward points that can be redeemed. To maximise their value, consider using your accumulated points for Christmas gifts, travel or dining out with family.

You can also alleviate repayment pressures with CommBank’s SurePay instalment plans. Eligible credit card customers can make a purchase of $100 or more on their credit card and use SurePay to break that expense into fixed monthly instalments over three, six or 12 months – choose the timeframe that best suits you. Plus, you don’t pay interest on the amount you’re paying off and there’s only a one-off set-up fee.

3. Get crafty

Save money and have fun with the whole family creating these budget-friendly decorations.

Hand-printed reindeer art 

Materials: Brown kraft paper, red pompoms, googly eyes, markers, scissors and glue.  

How to: Trace and cut out your family members’ hands on brown kraft paper to use as reindeer antlers. Glue these onto another sheet of paper and draw the reindeer’s face below, using a red pompom for the nose and googly eyes for extra fun. Each family member can make their own reindeer. 

DIY salt dough ornaments  

Materials: 1 cup flour, 1 cup salt, 1⁄2 cup water, cookie cutters, paint and string. 

How to: Mix flour, salt and water to create a dough. Roll it out and use cookie cutters to make festive shapes like stars, trees and snowflakes and cut a small hole in the top. Bake at 90°C for 2–-3 hours, let them cool, then paint them in fun Christmas colours. Tie a string at the top and hang them on the tree. 

Snow globes 

Materials: Small Christmas figurines (like trees, Santa or reindeer), empty jars, glue, water and glitter.  

How to: Glue your chosen figurine to the inside of the jar lid. Fill the jar with water, add a sprinkle of glitter and screw the lid back on securely. Shake the jar and watch the “snow” fall. These can then be placed around the house as beautiful decorations.

Snowflake window cut-outs 

Materials: Square white paper, scissors and string or tape.  

How to: Fold the white paper diagonally in half to form a triangle, then fold again to create a smaller triangle. Depending on how intricate you want the design, you can fold again. Using scissors, cut small shapes along the edges of the folded triangle – diamonds, circles and triangles, work well. Make sure not to cut all the way across so your snowflake stays intact. Carefully unfold and tape to the window or add string and hang up on the tree. 

4. Look out for scams 

Nothing takes the glow off the summer holidays — or any time of year — like being scammed. As shopping for gifts ramps up, stay vigilant. To avoid falling victim, always shop on trusted websites, double-check any URLs you use for secure connections (look for “https”) and be wary of deals that seem too good to be true. Avoid clicking on unsolicited emails or messages offering unusually large discounts, as they often lead to phishing sites. 

Use secure payment methods like credit cards or payment apps that offer buyer protection and monitor your statements regularly for suspicious charges. Staying cautious will protect your holiday cheer from fraud. 

5. Get festive at home 

Decorating and getting the house ready for guests doesn’t have to be expensive. With a little creativity and some thoughtful planning, you can transform your home. Vanessa Colyer Tay, head of styling at Temple & Webster – which provides CommBank Yello offers – shares her top tips.

Make the house feel magical 

Start with something simple yet impactful: fairy lights. “Christmas is all about that magical feeling. To capture it, hang fairy lights in unexpected spots — winding them through décor on a sideboard or draping them above your dining table.” And don’t forget to include a Christmas fragrance: “Just add a beautifully scented candle, reed diffuser or essential oil.” 

Repurpose holiday décor 

Don’t be put off when you pull out the Christmas storage box and face a tangle of tinsel, ornaments and lights; Colyer Tay suggests focusing on colour to pull everything together. “Start with a base colour and add accents in different shades and styles. If you have a big mix of decorations, spread them around the house.” And keep in mind that it’s not just how the house looks but how it feels, too. “The beauty of decorating this way is that it evokes nostalgic memories of Christmases past.” 

Prepare for guests  

Simple, considerate touches will make your guests feel at home. “Give your guest a hotel-like experience — without blowing the budget — with a special welcome basket. Include fresh rolled towels, a water bottle and practical extras like a power adaptor,” says Colyer Tay. “Thoughtful touches can make their stay feel special.” If space is limited, it may be a good idea to invest in multifunctional furniture. “If you don’t have a guest room, consider a stylish sofa bed that fits into your lounge, home office or bedroom, doubling as seating during the day.”

6. Take advantage of your transactions 

Making money go further during the festive season doesn’t have to be difficult if you take advantage of benefits from your bank. For eligible customers, the CommBank Yello recognition program is a great way to unlock savings by completing your regular transactions. By using your eligible debit or credit card, you could get access to exclusive discounts and offers at select stores, which can make holiday shopping less stressful. 

If you’re regularly transacting, you could get access to more offers and benefits including exclusive access to events. Plus, eligible customers can rack up CommBank Award bonus points each month, which can be redeemed on a wide range of products and experiences. It’s a clever way to give yourself a little breathing room.

Visit commbank.com.au/commbank-yello to find out more about CommBank Yello.

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