This year, many families have been significantly impacted by the rising cost of living, leaving them feeling stretched. For some, the usual traditions of lavish meals, piles of gifts, and festive outings may no longer feel realistic or sustainable. But this doesn’t have to mean losing the joy and magic of the season— and it can be an opportunity to reimagine what Christmas looks like for your family.

Adjusting expectations and creating new traditions is an opportunity to have important conversations about money and values, and what a rich Christmas might look like for your family. It can be an important time to shift the focus from material gifts to shared experiences, deeper connections, and conversations. For example, one family I recently spoke to have decided not to head straight to the Christmas tree this year. Instead, they are going for an early morning surf and will cook breakfast at the beach. What’s smart about this, is that it is going to create lots of positive neurochemicals without relying on gifts.

Five tips to help you talk about money without squashing dreams this Christmas.

1. Assume kids want to talk about money. 
Teens and tweens are often more curious about money than we realise, and they want to understand how it works. Talking about money in an age appropriate way, helps them feel secure, especially if things are tight. We want them to know that their thoughts and questions matter, and learn lessons about budgets, savings, prioritising and enjoying spending. Try saying, “While this household’s finances are my responsibility, I want you to be involved so you can handle money well.”

2. Avoid words that shut down conversations.  
It’s so easy to shut down conversations about money because we feel uncomfortable or inadequate. However, the key to more open conversations is not to be dishonest, defensive or dismissive. Try not to resort to lines like:

• • Be grateful for what you’ve got.

• • We aren’t made of money.

• • There are kids in the world that have nothing. 

• • Don’t blame the big man in red. Let’s leave him out of it!

• • Instead try saying, “I love you more than anything, but I’m not going to be able to love you with as many gifts this year. We will have to be creative.”  

3. Stay Open to Their Dreams.
Amongst the practicals of budgets, we don’t want to shut down our kids dreams or give them the idea that they are impossibilities. Try saying, “I still want to hear about what you’d like to have in life, even if I can’t afford to buy it for you right now.” You might also say, “We can work towards the things you most value.”  We also want our tweens and teens to know that they are resourceful people who might have ideas of their own about how to earn money.

4. Pooling resources. 
A lot of kids want to be gifted money, so they have the experience of hunting for bargains or shopping online. Even a small amount of money, perhaps pooled with other family members contributions, can be satisfying. Handling cash does teach kids about budgeting. Try saying, “Do your research. Spend money on things that bring you joy, add value to your life, and give you bang for your buck!”

5. Create rich memories.
Creating memories is one of the most powerful ways to make Christmas feel rich, regardless of how much money is spent. Shared experiences, laughter, and moments of connection have a lasting value that far outweighs material gifts. Whether it’s baking together, crafting homemade decorations, playing board games, or going for a family walk to admire Christmas lights, these traditions become the stories that are told for years to come. If our kids know that we believe a “rich” Christmas isn’t about what’s under the tree but the joy, love, and togetherness that fills the room, it will give them a great base to build from.

For Seven Low Budget (no-budget) Christmas Gifts Ideas, head to this blog.