Saving for Christmas in Ireland: a complete guide

5 ideas for boosting your Christmas savings

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Alongside the festivities and excitement, Christmas can be a time of financial strain and worry for many. With budgeting, preparation, and savviness, however, you can reach your holiday savings goals quickly and easily. From savings ideas to special offers, we take a look at what you can be doing to save for the festive fun.

Key takeaways
  • Plan your Christmas spending: Creating a Christmas budget and listing each expense can help you avoid overspending in the run-up to the big day

  • Festive savings ideas: From savings challenges to shopping around for deals, there are plenty of creative ways to grow your Christmas funds

  • Saving for Christmas: Stashing your Christmas money away in a high-yield savings account keeps it out of reach until you really need it and lets you earn interest, too

What is a good amount to save for Christmas?

When it comes to saving for Christmas, the right amount really depends on your personal situation and what you like to do on the big day. With food, decorations, gifts, and events to plan for, the costs soon add up.

You could start by simply making a list of everything you need for Christmas, then rank each item in order of importance. To help with this, think about what you spent your money on last Christmas. If you want to be really disciplined, you might put a spending limit against each item.

For many people, gifts are the biggest expense, so that’s where most of the Christmas savings will go. When planning gifts, consider breaking down your list by person. If you have young children to buy for, it can be reassuring to remind yourself that they often appreciate the Christmas magic – the decorations, lights, stories, and little traditions – just as much as (and sometimes more so!) than expensive presents. 

A common suggestion is to save about 1-2% of your annual income for gifts, but you can adjust this amount depending on what works best for you. Taking the average salary in Ireland of €45,000, saving 2% would mean setting aside around €900. If you start saving for Christmas early in the year, that would come to about €75 a month.

A savings account offering competitive interest can help you reach your targets that bit faster.

How much do Irish people spend on Christmas?

According to a 2023 survey of over 1,000 people, the average Irish household spent around €1,030 on Christmas. Families with children spent slightly more – about €1,369 on average*. This is actually lower than previous years, showing that people are being a bit more cautious with their spending, perhaps due to rising costs or tighter budgets.

5 ways to save for Christmas

Saving for Christmas is often much easier when you plan ahead, and this can start at any time of the year. Consider each item on your list and think about ways you can get a better deal on them.

Here are five ideas to boost your Christmas savings:

1. Plan your Christmas budget

Creating a budget is key when saving for Christmas, as it can help you stay within your means and avoid going overboard. 

You might start your budget by adding up your monthly income until Christmas. Don’t forget to include any work bonuses or vouchers you’re expecting. If you’re eligible for the once-off double week Christmas payment the Government recently introduced, make sure to factor that in, too.

Next, subtract your essential expenses, like rent or mortgage payments. This will give you a clearer picture of what you have left to put towards Christmas savings.

Finally, divide the remaining amount by the number of weeks or months left until the big day, which will tell you how much you might need to start saving for Christmas. If you’re starting from scratch, you might need to get creative, perhaps by cutting back on non-essentials or finding ways to boost your Christmas budget.

Open a Christmas savings account

If you’ve already built up some savings, it might be worth taking a look at your accounts to ensure you’re getting the best interest rates as Christmas approaches. Some people like to set up a separate savings account for their festive funds, so they won’t be tempted to use them for other things.

If you prefer that structure, some credit unions in Ireland offer special Christmas savings accounts, where you can make regular or one-off deposits. The funds are automatically released in mid-November – just in time for your Christmas shopping. But if you need access to your money earlier, you can still withdraw your Christmas savings whenever you like. 

If you’re looking for a solid return on your savings, the Raisin Bank platform can help you compare different accounts. With fixed term deposits, you can lock in some of the most competitive rates available. You can choose an account length based on how long you have left to save for Christmas, with terms ranging from as short as three months up to a year and beyond.

2. Make saving for Christmas fun with a savings challenge

These challenges work best when you’ve got the whole year to get ready. They can be a great way to ease into saving well before you’re in the stress of last-minute holiday preparations. You can even turn it into a yearly tradition to be better prepared for Christmasses to come.

  • 52-week Christmas savings challenge – Start by saving just €1 in the first week, €2 in the second week, then keep increasing by €1 each week. By the end of the year, you’ll have built up over €1,300! You can use a jar, envelope, or savings account to track your progress, and watch the savings stack up as the weeks go by.

  • 1-cent Christmas savings challenge – This is essentially the same concept, but on a smaller scale. You start with just one cent on day one, two cents on day two, and keep going up by one cent each day. By December, you’ll have a stash of change to put toward your Christmas shopping.

If tracking daily or weekly savings feels like too much effort, you might just want to save, say, €100 at the beginning of each month. That way, you’ll have €1,200 saved by Christmas. And if you start saving for Christmas later in the year, you can adjust the amount you save each month to meet your target.

3. Make the most of festive deals by shopping around

As Christmas gets ever closer, retailers pull out all the stops to win your business, especially around Black Friday and Cyber Monday. Plenty of stores offer exclusive discounts and price-matching policies to stay ahead of the competition, so shopping around gives you the chance to get the best value. If you sign up for retailer newsletters, you can get early access to deals, member-only sales, and voucher codes that can add up to real savings.

With a bit of planning and a savvy mindset, you can make your Christmas shopping euros stretch further. Just try to stick to your Christmas budget and list as best you can to avoid tempting extras that you don’t really need.

4. Trim down your Christmas gift list

While it’s tempting to buy gifts for everyone you know, that isn’t always affordable, especially with the ongoing cost of living crisis. Instead, try setting a realistic spending limit with friends and family, or suggest a Secret Santa to keep things affordable (and fun!). Refer to the list of who you’re buying for and exactly what you want to get – it’ll help you stay focused and avoid impulse buys.

If you’re looking to save even more, consider homemade gifts or decorations. A handmade treat or crafted decoration adds a personal touch, and it often goes down well with family and friends.

5. Money-saving ideas you can use year-round

Saving money is a handy habit for life, not just for Christmas. By saving on everyday expenses, you can free up more money to save for Christmas. Small changes here and there add up, so it’s worth looking at how you can cut your spending throughout the year.

Some of the big supermarkets offer cashback vouchers to bring down your spending. You can add a little amount each time you shop, and get bonuses for larger top-ups. The full amount is issued as vouchers in November, in time for your Christmas food shop.

Travel is another area that can easily drain your Christmas budget if you don’t plan ahead. If you’re planning to visit friends or family over Christmas, booking your train or flight tickets well in advance can save you a lot of money. 

When saving for Christmas, don’t forget about your energy bills. These can be a major expense in the winter months, with bills usually coming due around February. But your energy provider might not be the cheapest. Check the comparison sites and get some quotes; you might find a better deal and save some money in the long run.

Raisin Bank has a helpful guide on how to save money on everything from heating bills to streaming subscriptions.

Approach Christmas savings clubs with caution

Christmas savings clubs can seem like a convenient way to budget for Christmas by letting you save throughout the year in exchange for vouchers, hampers, or gift cards. However, there are some drawbacks to be aware of.

These clubs usually pay out in vouchers, and you’re often limited to spending your vouchers at certain stores. So if a store goes out of business, those vouchers might become worthless. In recent years, there have been a few notable cases in the UK where savers ended up losing their money. Some clubs also charge fees for cancellations, so make sure you read the terms and conditions carefully.

And because these Christmas savings don’t tend to earn interest, you won’t see your money grow like you would with a regular savings account. In many cases, a high-interest savings account, where your money is protected under the Deposit Guarantee Scheme and earns interest, can offer more flexibility and security for Christmas spending.

Save for Christmas with a high-interest savings account

With banks from across Europe at your fingertips, we give you more choice to find some of the most competitive interest rates. Register for a free Raisin Account today and start your Christmas savings journey.

*https://www.rte.ie/news/ireland/2023/1205/1420139-christmas-spending/