Christmas 2024: 8 ways to boost your festive funds

With Christmas just around the corner, it’s the perfect time to give your budget a boost and ensure the festive season doesn't dent your finances. 

Even small adjustments, such as booking travel early or tapping into cashback offers, can add up to surprising savings.

Here, Which? rounds up eight smart ways to make your budget go further for Christmas.

1. Get cash for switching bank accounts

Many of us stay with the same banking provider for years, but you might be able to earn a significant cash bonus if you switch, plus better perks such as a market-leading savings account or fee-free spending abroad.  

Right now, there are five switching incentives available, offering up to £200:

• Lloyds: £200 if you switch to a Club Lloyds account.
• Natwest: £180 if you switch to a Reward account, where you can earn £5 each month in rewards.
• Nationwide: £175 if you open a FlexPlus packaged account, a FlexDirect or a standard Flex account. 
• First Direct: £175 if you switch to a 1st account, which comes with fee-free spending abroad.
• Co-operative Bank: £75 for switching to a standard or packaged account, plus a further £25 in each of the first three months.

Find out more: October's best bank-switching deals

2. Utilise budgeting apps

If you’re struggling to stick to your Christmas budget, consider trying free budgeting tools. 

These apps bring all your accounts into one place, making it easier to manage expenses and identify where you can save. Some popular options include: 

• Emma: links up to two bank accounts and categorises expenses to help you stay on track. Core features are free to use. 
• HyperJar: uses digital jars to allocate funds by category and allows you to earn interest with certain brands.
• Plum: automates small savings with round-ups and offers spending insights to keep you on track.
• Snoop: gathers all accounts in one place, categorises spending and provides money-saving tips tailored to your habits.

Find out more: best budgeting apps

3. Try a savings challenge

A savings challenge can be a simple way to build up extra funds. Here are a few options to get started: 

• Little Vices Challenge: cut out any non-essential spending for a set period. For instance, skipping a £15 takeaway on weekends and a £3 coffee each weekday could save you around £120 over four weeks.
• 5p Challenge: start by saving 5p on day one, then add an extra 5p each day (10p on day two, 15p on day three and so on). By following this challenge from November 1 to December 20, you’d save over £60. 
• Cancellation Challenge: take stock of your subscriptions and direct debits, cancelling anything you no longer use. Allocate the saved amounts to your Christmas fund.
• Round-ups: many bank apps offer a ‘round-up’ feature, rounding each purchase to the nearest pound and saving the change automatically. Some also pay interest on top.

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4. Beware Black Friday dud deals

Black Friday can be a chance to snag genuine discounts, but not every advertised 'deal' offers real savings. 

Many items drop to their ‘sale’ price multiple times a year, so the discount might not be as good as it seems. 

At Which?, we track prices throughout the year, to help you cut through the hype and spot genuine value. Our Black Friday insider’s guide highlights the deals we believe are truly worthwhile, with expert advice to help you avoid the duds and focus on real savings.

• Find out more: how to avoid fake Black Friday deals

5. Get cashback on your spending

Cashback sites such as Quidco and TopCashback can be an easy way to earn back a portion of your spending. 

Simply click through the cashback site to your chosen retailer, make a purchase and collect a percentage back. Do double-check that the retailer you use offers the best price, compared to buying elsewhere.

Sites such as Jam Doughnut, HyperJar, and Cheddar also reward you instantly when you buy retailer gift cards through their apps.

You might also benefit from a cashback credit or debit card. Some credit cards offer up to 5% cashback for the first few months, while providers such as Chase give 1% back on everyday spending. Just remember that with credit cards, it’s best to pay off the balance in full each month to avoid interest charges.

• Find out more: best cashback credit cards

6. Use loyalty schemes and discount codes

Loyalty schemes, coupons and discount codes can help make your budget go further.

Supermarket loyalty programs such as the Tesco Clubcard and Sainsbury’s Nectar Card offer exclusive discounts, rewards and points you can put toward future purchases.

If there’s something special on your list, signing up for retailer newsletters could unlock extra savings, including introductory offers or personalised discounts sent to your inbox. Some retailers even provide discounts if you refer a friend.

For online shopping, tools such as Coupert and Pouch are free to use and automatically apply available discount vouchers to your basket, so you don’t miss out on savings.

• Find out more: loyalty cards compared

7. Cut food costs

The cost of festive feasts can add up, but these tips can help you reduce your expenses and avoid excess waste:

• Plan ahead: pre-plan meals and make a list of essentials to avoid impulse buys. The earlier you start, the more time you’ll have to compare prices and buy items such as tinned or frozen foods in stages to spread the cost.
• Choose a cheaper supermarket: Which? compares prices monthly across the UK’s biggest supermarkets to find the cheapest place for groceries. This year, Aldi has been consistently cheapest for a basket of goods, while Asda often leads for larger shops.
• Share the cost: to cut down on your Christmas food spend, consider asking everyone to bring a dish. This not only lightens the load, but also saves time and lets friends and family showcase their culinary skills.
• Make the most of leftovers: turn leftover vegetables into soups, make stock from the turkey bones, or freeze leftover wine in ice cube trays for future dishes. Many items freeze well, including cooked meats, vegetables and sauces, so you can stretch your festive meal into the new year.

Find out more: cheapest supermarket 2024 revealed

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8. Book travel now

Visiting family and friends over Christmas can be costly, but planning ahead can help you save on travel expenses.

• Buy train tickets in advance: booking early often means cheaper fares. Many rail companies release tickets up to 12 weeks before travel, so Christmas tickets are already available. For next year, set a reminder for late September, as some firms release seats even earlier. Off-peak travel and splitting your tickets can also lower costs.
• Use a railcard: railcards can save you a third on most journeys and usually cost around £30. Just watch out for sneaky terms and conditions that could invalidate your ticket. 
• Find the cheapest petrol: if you're driving, avoid premium fuel, as it can cost 10-15p more per litre. Use comparison sites to check petrol prices near you, or consider filling up at supermarkets, where prices tend to be lower.