Christmas is a magical time of year when we all love to indulge in delicious food and drink, get stuck into the festive spirit and treat family and friends with special gifts.

The only trouble is, Christmas gifts can be rather expensive. And this is on top of all the grub, drink, events and social gatherings that happen throughout the festive season too. My partner and I started hosting Christmas a few years ago after we had our first child, as a way to get all the grandparents and extended family members included. As a result our festive spend went up massively, and we've taken a few years to adjust to these additional end-of-year costs.

While Christmas can be an expensive time of year, I've discovered a few ways to cut costs to make things a little more manageable (check out some more in my article How to save money for Christmas). And one of the best places to start is with gifts because you can still be generous and thoughtful while making sure that Santa is the only red you see this Christmas.

Below, I'll let you know how you can find Christmas gifts on a budget so you can shop ‘til you drop and treat your nearest and dearest to bring some holiday cheer.

Set your budget

Before you make your first gift purchase, it’s important that you establish how much you have to spend on gifts for the year. Make sure you also have enough money left over for those other pricey purchases throughout the holiday season like nights out and entertainment. Use our handy budget calculator to do this if you need a hand getting started!

It helps if you make a list of everyone you want to buy gifts for and break down your total budget into an amount per person. That helps you prioritise who you’re buying gifts for and the total amount you can spend so you don’t go over budget.

When you have your budget, do your best to make sure you don’t overspend. Even spending just a few more pounds per person will soon see your budget get out of hand. Get more budgeting tips from Savoo's money-saving expert, Ed Fleming, in his guide How to save money.

Where to search for Christmas gift bargains

Shopping at different places will make sure you get the most out of your budget. And if you don’t mind the slight inconvenience you’ll be sure to find a bargain.

Here are some great places to start to help you find great gifts for less:

• Online stores such as Amazon, eBay, SHEIN and Etsy offer an almost endless choice of gifts. And if you shop during the sales, such as Black Friday or Cyber Monday, you can also save a lot of money.
• Discount retailers, like TK Maxx, B&M and Poundland have a wide range of gifts available during the lead-up to Christmas. You’ll often find big-brand gifts at more affordable prices.
• Membership warehouses, like Costco, are perfect if you want to buy the same gift for a lot of people. It’s perfect if you want to treat a bunch of friends or you have more grandkids than you can count.
• Charity shops can be a treasure trove for gifts, which could be vintage, antique, unique and sometimes even brand new. It’s also worth visiting charity shops in notoriously affluent areas to find some real treats.

Gift ideas under £20

Today, £20 doesn’t feel like a whole lot of money. It’s usually not even half the cost of a brand-new video game, for example. But, if you use your creativity, £20 can still go a long way. Here are just a few ideas for gifts under £20.

• Personalised gifts: Something personalised can make almost any type of gift seem more expensive than it actually is. And you can personalise loads of things, from beer cans to chopping boards for relatively cheap, which gives you plenty of choice. You can browse voucher codes for personalised gifts to get even more money off. A personal favourite of mine for personalised baby gifts is My 1st Years, and for grown-ups I usually go for Not On The High Street.
• Edible gifts: Christmas is a great time to indulge, and foodie parcels like hot chocolate kits, biscuit selection boxes and cocktail sets make for the perfect gift and are relatively cheap.
• Home decor gifts: Small home decor items can add a lovely touch to a room, and things like scented candles, small plants and decorative throws are cheap and can be bought to suit any type of style.
• Hobby gifts: What does the person you want to buy a gift for enjoy? Hobby-related gifts are a sure-fire winner, so treat your cooking-loving Aunt to a set of spices or your puzzle-obsessed brother to a jigsaw.
• Books: Books are a brilliant way to give someone something they’ll love and not spend much. You might gift them the new book by their favourite author, something that’s sending BookTok wild or a non-fiction book that you think they might love.
• Toys and games: Kids don’t need the flashiest new toys, so don’t worry about spending a fortune. If you have kids, you can pick up cheap toys that are still high quality at retailers like Home Bargains and B&M. Bargain retailers tend to have huge kids sections, so they’re definitely worth a visit.

Consider DIY gifts

Even if you’re not exactly the most crafty person in the world, there are lots of ways to make DIY gifts so you can give people a present with a personal touch. And while you will have to buy a few things, the biggest cost will be time. So, if you plan to make your loved ones something, be prepared for how long it might take.

I spoke to Matt Jones, home and DIY editor, who told me his two favourite DIY Christmas gift ideas that take under one hour to create.

A great starting place is homemade candles. All you need is wax, wicks, scented oils and jars, and you can give something unique which is hard to get wrong. I recommend getting soy wax chips as they are better for air quality, although these come with a higher price tag than paraffin chips.

Or, you could get some chocolate-y ingredients and plastic bags to create your very own luxury hot chocolate kits. Try using lollipop sticks and ice cube moulds to make hot chocolate stirrers, add a few drops of peppermint, caramel or orange essence, and invest in a large bag of mini marshmallows.

If you already have some experience making things, you could use your existing skills to your advantage. If you’re a keen baker, you could whip up some cakes, cookies or fudge. Or, if you crochet or knit, pick some wintry colours and make a scarf, socks or gloves to keep your nearest and dearest nice and toasty.

Winter candle-making workshop attended by Matt Jones and the Savoo team

Shop last-minute

This is always a little risky, as retailers often prepare for the post-Christmas sales during the final few days before the big day, but sometimes it can pay to wait. This is especially true if you want to give someone a food-related gift that has an expiry date. Often, things like sweets, biscuits and cakes will be reduced a couple of days before Christmas, so you can get those high-quality, premium treats while paying much less. But it is a risk, so be prepared to have a smaller choice or for others to have got in there before you.

Quick Christmas gift money-saving tips

Looking for some ideas for quick ways to save money on Christmas gifts? Here are a few things to consider when you’re searching for the ideal present this festive season:

• Take advantage of voucher codes, such as those provided by Savoo, which you can use at many of your favourite retailers and save plenty of money.
• Where possible, buy group gifts. For example, instead of buying a family of four individual gifts (which will soon add up), buy them something they can enjoy together like a hamper or board game.
• Rather than giving a physical gift, give something digital instead, like a subscription to Netflix or a restaurant voucher.
• Repurpose old gift bags and wrapping paper, especially for smaller presents and those trusty bottles of booze.
• Start your shopping as early as possible to help spread the cost. There’s nothing wrong with buying Christmas gifts in July!
• If you have a big family, pitch the idea of doing a Secret Santa or lucky dip, so you don’t have to spend money buying something for everyone.
• Ask family and friends to pool money so you can buy something on the more expensive side but not have to spend much yourself. While this may feel a little weird, our recent Christmas spending survey revealed that 33% of parents questioned would consider asking their guests to contribute financially.

Save more money on gifts this Christmas

You might want to spend hundreds on the best gifts for your family and friends, but it’s not always possible. That’s why giving Christmas gifts on a budget is important, so you can treat those you love without having to worry as much about money.

Here at Savoo, we have a huge selection of up-to-date voucher codes that can save you a bundle on your Christmas shopping. There are loads of popular retailers, including gift specialists like The Gift Experience, Buyagift, Cadbury Gifts Direct, Funky Pigeon and many more. Browse voucher codes now and see where you can save money on presents this Christmas.