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How to have a budget Christmas: Ideas for presents and entertaining

A collage of a pavlova, Kitiya Palaskas, and some upcycled jars.
Kitiya Palaskas says homemade gifts and Kris Kringle can keep costs down this Christmas, as can re-thinking the way you feed a crowd.()

December is already an expensive time of year, and the cost of living crisis hasn't helped.

And after years of lockdowns and closed borders many families are catching up on lost time with more Christmas events than previous years.

If you're feeling the pinch — here are some ideas for buying prezzies on a budget, and for keeping costs down when hosting a Christmas feast.

Entertaining on a budget

Vanilla ice cream, raspberry jam and toasted coconut, ingredients to make lamington ice cream cake.
Use cheaper ingredients like supermarket ice cream as the bulk of your dish.()

Plan ahead

Tanya from the ABC Everyday Facebook group says it's important to plan your holiday entertaining menu in advance.

This way, you can shop for non-perishables when they're on special.

"Use the more expensive ingredients as an accent to your dishes rather than the feature," she says.

"[By using] prawns in a salad (add at the last minute before serving) you can cut the costs by not having to buy as much."

Prices for popular items like seafood and meat also tend to rise in the week before Christmas. But if you have the storage space, you can save money by buying them in advance — here's how to store and serve prawns, fish, ham and more.

Divide and conquer

When group member Vicki catered for 12 recently, she found preparing big vegetarian dishes (like vegetable lasagne) for mains kept costs down, given meat-free food tends to be cheaper.

She also made sure to offload responsibility for nibbles and desserts to other family members, and everyone brought their own drinks.

"For Christmas and any kind of entertaining a crowd, I honestly think sharing the burden is the best way to get around a strained budget," she says.

"Just because you're hosting it, doesn't mean you have to do everything yourself."

You could even ask everyone to bring a plate of mains to share — just make sure to coordinate it so there's no double-ups.

Budget gift ideas

Plants in painted pots

Craft-based designer Kitiya Palaskas suggests pairing a plant with an upcycled pot.

You could pick one up from a nearby nursery (my local has flower pots for $3!), or even just grab a pot of herbs from your supermarket. If you're already a plant fan, you could even grow something yourself from a cutting.

You could then find some cheap paint tester pots at the hardware store, or even check if someone in your local community has half-used cans of paint they could pay forward to you. Or, Ms Palaskas says, you could even wrap the pots in scrap fabric.

Buy second-hand

If you're shopping for your own young kids, you could also consider buying second-hand.

Online marketplaces are likely to have the same pre-loved toys as the shops, and little ones won't know the difference.

Edible gifts

Members of our Facebook group had a ton of ideas when it came to homemade gifts — everything from jars of make-it-yourself baking mix to jams or cooking oils infused with chilli, garlic or rosemary.

Art and craft ideas

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Ms Palaskas says collage is a great way to start small with crafting, with the added bonus of being easy to send in the post.

"Go around the house and grab a bunch of old photos, books or magazines, old wrapping paper, just bits and pieces," she says.

"All you need is a glue stick and some scissors and you could create really cool little artwork for someone. And that would only take you like an afternoon."

Ms Palaskas reiterates that the key to budget, sustainable crafts is all about upcycling – old coasters or vases can be made new, while decorated leftover cardboard boxes can be transformed into a craft kit for little ones.

Consider Kris Kringle

Getting your family or friends on board for Kris Kringle is an easy way to keep the cost and stress down this Christmas.

Leng from our Facebook group keeps Kris Kringle sustainable in her friendship circle.

"The rule is the gift can't be something new. It has to be an unused re-gift or something thrifted," she says.

They also implement White Elephant (also known as Dirty Santa) — which can keep things exciting for both new or used gifts.

Basically, everyone is given a number.

The person with number 1 picks a present from the pile.

Then number 2 goes next — they can either steal the opened gift from person Number 1 (in which case that person gets to open a new gift) or open a wrapped gift. Then you keep going until everyone's had a turn.

But a warning: Competition can get feisty!

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