How to give kids the magic of Christmas on a budget

Christmas is supposed to be magical for children – but as the cost-of-living crisis means even Santa has had to tighten his huge belt this year, many parents may fear the magic could vanish.

But although new research by Creditfix has found one in six parents are spending less on presents for their children this year, while it’s nice to be able to afford lots of expensive gifts, it’s not what Christmas is all about. Spending not money, but time with family and friends is the essence of the season, however much money you’ve got, and that means capturing the magic of Christmas on a budget is very do-able.

“It’s completely understandable that parents may be feeling a greater sense of pressure in the lead-up to Christmas this year, especially with the current cost-of-living crisis,” says Louise Hill, co-founder and CEO of the debit card for kids and financial learning app GoHenry.

“But during these times it’s important to remember Christmas is all about spending time together as a family, rather than purchasing big luxury gifts. There are plenty of low-cost ways to have fun and celebrate the festive season without breaking the bank, it’s just a case of getting kids excited about these alternatives.”

Here’s how Hill suggests families can capture the magic of Christmas without spending much – or in many cases, without spending a penny…

1.  Have a cosy Christmas movie night

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Take pleasure in the simple things like at-home movie nights, she suggests. Instead of costly outings like going out for dinner, why not try some homemade ‘fake-away’ food to have while watching your family’s favourite Christmas film, by making a takeaway meal using shop-bought ingredients? “This is not only a great way to save money, but it’s also a cheap and cheerful activity to bring the family closer together during the festive season,” she says.

2.  Encourage the kids to earn for those gifts

Hill suggests parents spark their children’s entrepreneurial spirit by getting them to think about ways they can earn some extra cash and save for Christmas gifts they’d like to buy. “Depending on their age, they could offer to wash a neighbour’s car, unload the dishwasher, or even sell some old clothes or toys on an online marketplace like Vinted or Depop,” says Hill. After all, children giving their own gifts – however big or small – can add to the magic for everyone.

3.  Get creative

Why not get into the festive spirit by making your own Christmas decorations?

Hill suggests helping your kids to make salt dough ornaments for the tree, or a homemade Christmas wreath from branches and leaves in your garden or the local park.

“You could even make this into a competition of who collects the most,” she says. “You could also bake some sweet treats, like a gingerbread house or festive cookies, ahead of the family coming around for Christmas, or to add a more personal touch to gifts.”

4.  Attend local Christmas events

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In most areas there’ll be a local Christmas market full of stalls run by small local businesses that it is good to support.  And even if you can’t afford to buy anything, just being there is bound to get you and the kids in the Christmas spirit.

“This not only gets you in the festive spirit by being surrounded by all the decorations and smells of Christmas, but it’s also a fun way to spend your weekend, and a chance to give back to your community,” says Hill, who suggests parents could also take the kids to a Christmas lights walk. “It’s a great way to get outdoors and enjoy the festive magic,” she says.

5.  Get the family involved in Secret Santa

Taking part in Secret Santa as a family is a fun and low-cost way to celebrate Christmas, says Hill, and there are even Secret Santa Generators online that you can put everyone’s email addresses into (if the kids are old enough to have one) and be secretly told who you have to buy a gift for.

“Secret Santa teaches your kids the importance of giving to others,” Hill points out. “Encourage them to buy one meaningful gift using the family set budget, and let them choose it using their well-earned pocket money. They could even gift something they made during arts and crafts at home!”