How to save for Christmas

Why saving early makes Christmas easier 

Christmas can be expensive. From gifts and food to travel and decorations, the costs can add up quickly. And juggling the planning and financial pressures can start to feel overwhelming. 

 

Without a savings plan, it can be tempting to turn to credit cards or short-term borrowing to get through December. But this can lead to financial strain later on.

 

The good news? Starting early and saving ahead can help you avoid last-minute panic and spread the cost more evenly. Setting aside a regular amount each month can help you avoid high-cost decisions, and reduce the need to dip into your overdraft or rely on high interest borrowing.

 

A savings account, like a regular saver, can help you spread the cost of Christmas by turning a large festive spend into smaller, manageable monthly amounts. Getting organised makes it easier to plan ahead and spend thoughtfully, leaving you time to write gift lists, shop early for deals, and avoid last-minute panic buying. 

 

Planning ahead for Christmas expenses

Start by thinking about what you’ll need to pay for at Christmas time. Think about things like gifts, food, decorations, and events – and how much you need to pay for each. Once you have a rough total amount to aim for, you can break down how much you need to save. Just split your target figure between the number of months you’ll save for.

 

For example, if you’re going to save over 12 months and want to have £600 saved by Christmas, you’ll need to save £50 per month. Set a goal that’s realistic and achievable. It’s better to save little and often, than to set a goal that’s hard to stick to – and end up giving up. Remember - slow saving is better than no saving! 

Easy ways to build your Christmas savings pot 

There are several simple tools and tricks that can help you build your festive fund: 

 

Try round-ups  

Consider ‘rounding up’ your purchases to the nearest pound – and saving the difference. For example, if you spend £2.60, round the transaction up to £3, and pop 40p into your savings account. Little-and-often saving really works. Over a month, these little amounts can add up. 

Lots of banks and apps now offer features that let you use ‘round ups’ automatically; rounding up your purchases and transferring the difference to your savings as you spend.  

 

Use cashback and rewards 

You can find ways to save, even while doing your usual day-to-day spending. Making the most of cashback and rewards throughout the year can help maximise your Christmas fund. Cashback sites like TopCashback or Quidco give you money back on online purchases. And rewards programs from your bank or supermarket can often be converted into vouchers or cash.  

 

Move leftover money 

If you have any money left in your account at the end of each month, however small – consider moving it into your savings account. This can be a great way to set aside money that you might spend otherwise. 

 

Staying on track with your savings plan 

You don’t need a complex spreadsheet to keep track of your savings (although we do love a good spreadsheet)! Try these small steps to build good savings habits ready for Christmas: 

• Choose an amount to save based on how much you earn and spend each month.  
• Set reminders to check your progress or adjust your savings if needed. 
• Review your spending each month to see if you could save more. 
• If your bank or app allows savings pots or nicknames, use these to keep you motivated. 
• Move money each payday to put your money ‘out of sight and out of mind’ and avoid the temptation to spend it. 
• Make small swaps, like skipping one takeaway per month and putting that money into your Christmas fund. 

Remember, saving is never perfect. It’s about progress – not perfection. If you miss a month or save less than planned, don’t worry, just keep going. Every penny you put into your savings contributes to the next pound saved. Being consistent is what ultimately builds real financial resilience. You can find more tips on how to save in our guide to savings.  

 

Where to keep your Christmas savings 

Choosing the right place to keep your savings can help you easily manage and access your money. Plus it can help keep you focused and stop you from dipping into your savings before you really need to. 

Having a savings account that is separate from your main bank account can be a good way of keeping you on track.  

 

Easy access savings accounts are ideal if you are looking for flexibility, allowing you withdraw money at any time, with no penalties.  

 

If you’re looking for something more structured, a regular saver account might suit you better. These accounts encourage monthly deposits and often offer higher interest rates, though they may limit withdrawals. 

 

Start saving now for Christmas 

Take control of your festive finances now with a 6 Month Regular Saver. Setting up a Christmas savings plan today can help you spread the cost and reduce stress later in the year. You can pay in up to £200 a month over 6 months and have a pot ready to spend when winter rolls around. Please note, you can't make withdrawals from the account, but you can close the account at any time before maturity if needed.

Or browse our full range of savings accounts to suit different goals.