Save for Christmas 2025: Five steps to achieve your gift-giving goals

Christmas is a magical time of year, filled with joy, family gatherings, and plenty of gift-giving. But let’s be honest – it can also leave your bank account feeling far from festive. With most Aussies wrapping up their gift shopping for this year, now is the perfect opportunity to think ahead and prepare for Christmas 2025.

If you’ve ever had to skip gifts because they were too expensive or felt the financial strain of last-minute shopping, starting a Christmas savings plan early could be your sleigh ride to a stress-free and budget-friendly holiday season. By putting money aside throughout the year, you can avoid debt, grab bargains as they arise, and make next year’s Christmas everything you’ve dreamed of – without the financial hangover.

This five-step guide will help you create a Christmas savings plan that keeps you on budget, encourages smarter shopping, and uncovers potential savings you may have overlooked.

Saving early for Christmas might feel like overplanning, but it’s one of the best ways to stay in control of your finances. Here’s why it’s worth starting today:

• Avoid debt. Spreading the cost of Christmas over the year reduces the need for credit cards or Buy Now Pay Later services, freeing you from unnecessary debt.
• Budget-friendly contributions. Smaller, consistent savings are far easier to manage than scrambling for a lump sum in December.
• Smart shopping. A dedicated fund means you can pounce on sales and discounts throughout the year.

The first step is figuring out how much you’ll need. Here’s how:

1. List your expenses. Consider creating a simple spreadsheet or list of gifts, decorations, food, travel, and other holiday extras that you want and need.
2. Estimate costs. Assign a dollar amount to each category. For example, you may want to spend $100 per family member, buy a $20 Secret Santa present for a colleague, put $200 towards a new tree and decorations for your home, and purchase $300 worth of food for Christmas lunch and dinner.
3. Total it up. Use your estimates to calculate your overall savings goal. Divide this by the months left until Christmas 2025. For instance, if you need $1,500, aim to save $125 a month starting in January.

A dedicated Christmas savings account keeps your funds separate and harder to dip into. Here are some options:

• High-interest savings accounts. Maximise your returns and have a place to stash your cash with competitive introductory rates, bonus rates and monthly interest.
• Term deposits. Consider locking your Christmas savings in a term deposit for higher interest rates and added discipline, as funds are generally inaccessible until maturity.
• Christmas club accounts. Offered by banks like Bank Australia , Woolworths Team Bank , IMB Bank and more. These accounts restrict early withdrawals, keeping you disciplined.
• Loyalty programs. Platforms like Everyday Rewards and Myer Christmas Club allow you to save points or funds for holiday shopping.

Automation is your best friend when it comes to consistent saving. Here’s how to set it up:

• Direct debits. Schedule a regular transfer to your Christmas fund each payday.
• Round-up apps. Round up purchases and deposit the spare change into a savings account.
• Cash boosts. Use tax refunds, bonuses, or windfalls to give your fund an extra boost.

Planning your shopping early means more opportunities to snag bargains. Follow these tips to make every dollar count:

• Shop the sales. Check for end-of-season, mid-year, Black Friday and Cyber Monday deals.
• Use loyalty points. Redeem from programs like Flybuys or Everyday Rewards to cut costs.
• Buy in bulk. Stock up on non-perishables like wrapping paper, decorations, and small gifts.
• DIY gifts. Handmade or personalised presents can save money and add a thoughtful touch.

Keeping tabs on your savings ensures you stay on target. Use a budgeting app or a simple spreadsheet to:

• Monitor your deposits.
• Track your spending against your budget.
• Adjust contributions if your circumstances change.

For more money app options, head over to the Mozo fintech hub to read our reviews on a range of Australian banking apps. Compare savings accounts to find options that suit your needs.