Five festive finance hacks from Mortgage Choice

1) Plan ahead

Take a leaf out of Santa’s book and make some lists. Jot down who you plan to buy gifts for, setting a price limit for each, note what you need for Christmas day catering and how much it’s likely to cost, and itemise other Christmas expense like holiday outings.

2) Look for discounts

There’s a wide range of ways to cut the cost of presents without being a Scrooge. Gift cards for instance are available at discounted prices on sites like eBay and Gumtree.

Remember, not every gift has to be store bought. A homemade fruit cake for example, shows real personal thought and costs a fraction of retail price.

3) Join forces with family members

The festive season is all about family, so it makes sense to team up with relatives to pay for big ticket gifts that the recipient actually needs and will use. Or make a family pledge to set a dollar limit on gifts to save money all round.

4) Pay with cash where possible

An estimated 40 per cent of festive purchases will be paid for with credit, and that can mean adding to the cost through interest charges. Paying with cash is a sensible step. Don’t forget lay-by. It may be old-fashioned, but it allows you to pay off purchases at your own pace.

5) Share the love, and the load

Don’t feel you have to do all the catering for Christmas Day. Invite family and friends to contribute to the table with a bottle of bubbles, their own favourite dish or just a few nibblies. It helps cut the cost while also creating a sense of inclusion — and that’s what Christmas is about.