Christmas Day doesn't break the bank. The whole summer does, from December gifts to January bills.

The key is planning. If you don't start thinking about it until Christmas Day, you're stuffed. Last summer, 73% of Kiwis were worried about the cost of living, but only 27% had a holiday budget⁽¹⁾. Start planning now and everything else gets a lot easier. Here's how.

1. Budget for the whole summer

List everything between now and back-to-school: gifts, food, travel, holidays, school costs and the usual bills. Then compare it with what's coming in. It's easier to trim now than in January.

2. Buy all your gifts early

Black Friday is Friday 27 November. Get all your gift shopping done that weekend. If you leave it to the December rush, the sales are over and panic-buying takes over.

• Write your list first, with a budget for each person. If it's not on the list, it's not a bargain.
• Check prices now. When Consumer NZ tracked popular items in 2023, 77% were the same price or cheaper in the weeks before Black Friday⁽²⁾.
• Stop when the list is done.

3. Mind the January gap

Many employers pay early before the Christmas break. It can feel like extra money, but it isn't. If you're paid monthly, that December pay may have to last up to six weeks, and even fortnightly pays can stretch further than usual.

At the same time, January is when the bills land: the credit card statement for Christmas, school uniforms and stationery, and the usual rent, power and insurance.

To get through it:

• Check your pay dates now. Find out when your December and January pays land, and count the weeks in between.
• Set January aside first. When the early pay arrives, move enough for January's rent, bills and groceries into a separate account before you spend anything on Christmas.
• Do everything you can to avoid debt. Christmas debt is always harder to pay back than it looks in December. If you can't pay for it now, leave it out.

4. Give smarter

Agree on spending limits with your whānau, draw names for Secret Santa, or give your time instead of more stuff. For kids who already have everything, a contribution to their KiwiSaver is a gift that keeps growing.

5. Start Christmas 2027 now

Open a "Christmas 2027" savings account and set up an automatic transfer. If you put away $25 a week for the 43 weeks from February to early December, that's $1,075 saved, before any interest.

Meri Kirihimete from all of us at Kōura! Want to check your KiwiSaver is set up for your goals? Build your KiwiSaver plan. It's free and takes a few minutes.