12 ways to minimise your festive spending hangover 

The holiday season is a time for celebration, connection and, often, a little extra indulgence. But it can also bring financial pressure, especially when the costs of gifts, travel, entertaining and festive celebrations start to add up.

In fact, 6% of Australians, equivalent to 1.3 million people, went into debt over the 2025 Christmas, according to research done by Finder.

With ongoing cost-of-living pressures and higher everyday expenses, it's easy for holiday spending to stretch beyond what you planned. The good news is that a little preparation can go a long way.

Here are six simple ways to enjoy the festive season, avoid unnecessary overspending, and reduce the risk of a post-holiday debt hangover.

1. Set a festive budget

Avoid the last-minute dash (and the overspending that comes with it) by setting your gift budget early and sticking to it.

This can look like researching for online bargains, comparing prices and taking advantage of specials on food and entertaining essentials to help stretch your budget further.

2. Purchase ahead of the season

Planning ahead of the December mark-up can also pay off. If you're able to, and know what you'd like to buy your friends and family, it can be a good idea to utilise major sales events such as Black Friday and Cyber Monday.

3. Avoid temptation

When making these purchases, it can also be helpful to pay with cash or a debit card, so you're not tempted to spend money you don't have with credit – your future self will thank you.

4. Create a Christmas savings fund 

Setting aside even a small amount each week can help cover gifts, food and celebrations without relying on credit when December arrives.

If you start saving from Halloween and put away $20 a week, you'll have around $160 by Christmas to put towards presents, festive food or holiday activities, without relying on credit.

And, if you're able to, you could consider putting that money into a dedicated high-yield savings account so it's less tempting to dip into and could earn you some interest.

An added bonus is that having a separate Christmas fund savings account could make it easier to track your festive spending and protect your everyday budget.

5. Go green with second-life gifts

A heartfelt gift doesn’t have to come with a big price tag.

Second-hand finds can make thoughtful and affordable gifts.

Shopping through marketplaces such as Marketplace, Depop, Vinted or Gumtree, or purchasing items in bulk, can also help keep costs down - just be sure to watch out for these common shopping scams.

6. Handmade is heartfelt

Handmade presents or potted plants can be incredibly touching and personal. This could look like making your own cards, your own gift wrap or decorations.

This can also be a fun activity for the whole family during the festive season.

7. Gift your skills

You can also turn your hobbies into thoughtful gifts. Have you recently taken up pottery? A handmade mug could become a treasured keepsake. Enjoy crocheting? A scarf or blanket made with care can be far more meaningful than a store-bought gift.

Whether it's fishing, baking, woodworking, gardening or another hobby, sharing something you've created yourself can add a personal touch that money can't buy.

8. Give your time 

There’s also more to give than just things you can wrap. Sometimes the most meaningful presents are experiences and quality time.

Whether it's a picnic in the park, a home-cooked meal, a day out together, or helping a loved one tackle a project they've been putting off, these gifts can create lasting memories without straining your budget.

In many cases, they're remembered far longer than another pair of socks or a new candle.

9. Share the load

Group gifting can make it easier to give a more meaningful gift or memorable experience without stretching your budget.

Consider extending Secret Santa beyond the workplace to family or friends. It can make gift-giving more fun, affordable and less stressful for everyone involved.

Another option is to pool your budget with family members or friends to buy one larger gift for a loved one, rather than purchasing several smaller items.

Not only can this help reduce costs, but it can also make it possible to give something truly special that might otherwise be out of reach.

10. Re-gift unwanted presents 

Admit it, you’ve probably done it. And it makes sense too. After all, why let a bottle of red go to waste if you don’t drink it? Clothes you never wore - could be perfect for a friend.

Pass on gifts you won’t use to someone who will appreciate them, helping to reduce waste and make your budget go further.

11. Share the food responsibilities

Hosting Christmas lunch or holiday dinner can quickly become expensive, especially if you're catering for a crowd. Why not make it a pot-luck feast instead?

Ask each guest to bring a dish, dessert or drinks to share.

Not only does it help reduce the cost and cooking workload for the host, but it also gives everyone a chance to contribute their favourite festive recipe.

You bring the prawns, your cousin brings the trifle, and everyone gets to enjoy the spread.

13. Use loyalty points if you can

If you've been collecting loyalty points throughout the year, the holiday season can be the perfect time to cash them in.

Whether it's Flybuys, Everyday Rewards, Qantas Frequent Flyer points or other rewards programs, points can often be redeemed for gift cards, shopping vouchers, groceries or flights.

Using rewards you've already earned can help reduce your out-of-pocket spending.