With friends, partners, parents, and children to buy for at Christmas time, the prospect of finding the funds to cover gifting can fill many people with dread – especially when you’re on a tighter-than-usual budget.

With that in mind, this guide is filled with low-cost, DIY, and even no-spend gift ideas to alleviate any worries you might be feeling about gift-giving. So, dive in and learn how you can stick to a budget while still enjoying the festive season!

It’s time to set your budget

The festive season brings with it various financial pressures, especially for families with children. And while it’s wonderful to indulge in festive traditions like gift giving, we understand that it’s not always possible.

Perhaps it’s been a particularly expensive year and you’re hoping to cut back instead of spending excessively? If so, let’s start by taking a look at how you can create and stick to a budget:

1. Start by writing down your monthly income, then deducting all of your December expenses from it. This should include any bills and repeat subscriptions, plus money you’ll be spending on food shopping.

2. Once you’ve done this, you’ll be left with a set amount, which you’re then free to spend as you wish. (Don’t panic if it doesn’t seem like much, as shortly we’ll be diving into our low-cost and no-spend ideas).

3. Next, it’s time to write a list of everyone you’re hoping to buy for and allocate a specific amount of money to each person. For instance, for neighbours and distant family members, a smaller amount might be appropriate, whereas for immediate family, you might want to allocate a little more.

If you’re looking for additional advice, we’ve got a full guide on how to build a budget that’s sure to help across the year, as well as setting you up with a more comfortable budget for the Christmas season.

How to tell people you’re on a budget this Christmas

While we’re on the topic, we’d recommend setting clear expectations with family and friends, letting them know about your intentions to budget. Who knows, being open and honest might even encourage them to do away with gifting too, taking the pressure off everyone.

But how should you go about bringing it up? First, we’d recommend choosing the right time. For instance, a quiet one-on-one conversation is probably best. Also, instigate the conversation early in December so you’re both on the same page from the get-go. Finally, ensure you’re 100% open and transparent, explaining your financial situation as well as your intentions to budget.

No-spend gift ideas

So, if you’ve decided to go down the no-spend route, we’ve gathered a couple of options on how you can surprise loved ones without spending a penny:

1. Look out for free, festive events

Up first is the possibility of doing away with gifting altogether and focusing on an experience-based Christmas. Perhaps it’s usually a struggle to buy for siblings, nieces, and your friend’s children too? Well, suggest skipping over gifts this year and organising a fun-filled festive day out instead!

Garden centres and department stores offer plenty of free events in the run-up to Christmas – many of which will keep children entertained for hours. From grottos to free outdoor light trails, there’s certainly no shortage of options.

Try placing less emphasis on spending cash and more emphasis on spending time together. Your loved ones will likely agree that December is an expensive month, and they’ll be more than happy to focus on making memories instead.

2. Lean towards sentimental gifting

Next, let’s dive into a couple of no-spend ideas with a focus on sentimentality. There are a variety of options with this. For instance, do you have a child who’s recently left home? You could pull together a hand-written cookbook filled with family recipes for when they’re missing your home cooking. This is also a great idea if you’re a grandparent looking for a super thoughtful gift for your grandchild.

Or, how about upcycling a piece of furniture for a loved one who’s recently moved into a new house? If you’ve got a dresser that’s been in the family for years, give it a modern revamp by picking up some paint tester pots and getting stuck into some DIY.

If you don’t have any spare furniture or paint, have a look on your local Facebook marketplace to see if anyone’s giving any away. Many people have a clear out ahead of Christmas, so it’s the perfect time to have a browse.

Low-cost purchases

If you’ve got younger children, you’re probably eager to keep the magic of Christmas alive. So, we’ve gathered some ideas on how you can pick up cheap Christmas gifts that are well within budget.

1. Do a spot of charity shopping

Second-hand shops are treasure troves at Christmas time, stocking everything from teddies, books, toys, and clothes. Younger kids will be more than happy with a couple of toys to play with, and for older kids, board games and books make ideal presents.

If you’ve got a budget of £10, you could pick up a book and a toy for some great stocking fillers. What’s more is that in helping your budget, you’ll also be helping a charity (something that is of utmost importance at Christmas time).

And if you prefer to do your shopping online, have a look on Facebook Marketplace for some alternative second-hand options. From toys and games to clothing and accessories, you’re bound to find a variety of low-budget gifts. For more insights on this topic, make sure to check out our guide on how shopping second-hand can help you save money.

2. Arrange a secret Santa gift exchange

Our final low-cost option involves arranging a secret Santa! This works particularly well with larger families and friend groups, as you’ll only have to buy one present instead of multiple. Start by setting your secret Santa budget (this could be as small as £5 or something larger if you’re all in agreement), then each pick a name out of a hat, and you’re good to go.

Everyone is guaranteed a gift, and you won’t have to worry about a long checklist of people to buy for. Again, this provides you with an opportunity to focus on thoughtfulness, taking the time to really think about what your loved one would appreciate.

2. The art of regifting

When done thoughtfully, repurposing gifts can be a great way to save some extra money at Christmas time. Perhaps you received a gift last year that you appreciated but still haven’t found a use for? Well, you could regift this to a friend or family member who you know will absolutely love it.

You might just have the perfect gift sitting in your home already. Although having said this, you’ll definitely need to make sure you don’t regift something to the person who originally gave it to you - so if you receive a present that’s just not quite your cup of tea and you’re thinking of regifting, pop a post-it note on the item with a reminder of who gave you it, and when, to save anyone’s feelings from getting hurt.

DIY Christmas gifts

Next, if you’re looking for DIY Christmas gift ideas on a budget, we’ve got you covered with a couple of fantastic options:

1. Homemade Christmas cards

Why not turn your hand to a bit of crafting to create some cheap homemade Christmas cards?

You can gather old magazines, scrap paper, and perhaps recycled Christmas cards from previous years. Next, cut out any images you like and get to work gluing them on a blank piece of folded card.

You don’t need any other fancy supplies for this, just some scissors, glue, and a pen. And you could also repurpose items like buttons and leftover scraps of ribbon.

If drawing isn’t your strong point, then let the Internet help you out - there are tons of ideas for doodle-based designs and simple designs that don’t need an art degree or a set of oil paints to achieve a lovely Christmas look. Try looking on sites like Pinterest or Instagram for inspiration - something as simple as drawing a sprig of holly on a card or a little curling string of Christmas lights can be really effective.

Once you’ve nailed the design, it’s time to write down a meaningful message inside. Even if you’re not gifting this year, a truly heartfelt message is sometimes all the gift a loved one needs – and it’s a great time to thank your friends and family for their care and support throughout the year. With all that done, either fold up some paper to create an envelope (check out YouTube or TikTok for a handy step-by-step tutorial) or wrap a ribbon around your homemade card, and you’ve got yourself a truly unique gift.

2. DIY decorations

If you’re looking for cheap homemade Christmas gifts, then DIY decorations might be the way to go - you’re giving something that has a purpose (and can be used year after year), looks lovely, and also has a sentimental meaning.

There’s a wide variety of homemade decorations you can create - so many, in fact, that we have a dedicated guide on Christmas decorations on a budget. From repurposed twigs, greenery, and berries, to sequins and glitter, these homemade gifts are great for neighbours, family, and friends too.

3. Get stuck into some festive baking

Next, when it comes to DIY Christmas gifts, there’s nothing quite like delicious sweet treats to make loved ones smile. Whether it’s sugar cookies or super simple shortbread, you’ll likely have plenty of the ingredients stashed in your cupboard already.

What’s more is that this is something the whole family can get involved with, allowing you to make treasured memories in the process. It might even become a new Christmas tradition!

4. Create a scrapbook

For budget-friendly gifts for parents, partners, or friends, consider printing out photographs to create a thoughtful scrapbook or album. There are plenty of websites that allow you to print off treasured memories, or if you have a printer, print them at home to keep costs down. Finally, source an album and you’ve got the perfect gift for a loved one.

Or, if you’re looking for something even more low budget, how about digging out a picture from an existing album and showcasing it in a shiny new frame? You can pick up unique frames in second-hand shops, or home stores usually stock plenty of affordable options too.

Top tips for gifting on a budget

Hopefully you’re feeling more confident about gifting on a budget this Christmas.. Before we go, we thought we’d leave you with a few final pointers to bear in mind:

1. Get organised: Organisation is key when it comes to sticking to your budget at Christmas. Making a list and allocating certain amounts to certain people will ensure you know exactly where your money is being spent.

2. Shop early: This is important as it reduces the risk of last-minute panic buying. Plus, you might be able to snap up a bargain in the sales!

3. Shop mindfully: We’d also suggest focusing on thoughtfulness rather than quantity. Your loved one is far more likely to appreciate a thoughtful, homemade gift over another pair of socks!.

So, there we have it. These are our insights on how to shop for low-cost Christmas gifts (or perhaps not shop at all).

Doing Christmas gifts on a budget certainly won’t take enjoyment out of the festivities, and you’ll likely find joy in spending time with loved ones rather than spending on gifts.

Next, why not head over to the Moneyboat blog to check out a couple more guides? You can read guides on effective monthly budgeting tips and simple ways to save money—both of which you’ll find handy as January approaches.