Christmas can be an expensive drain on the pocket, so Hannah Stephenson asked money expert Andrew Hagger for his top tips for a cheap and cheerful festive season.

Presents, food, decoration, entertaining — it all adds up. And while most of us love the Christmas festivities, the extra cost can cause headaches.

Money expert Andrew Hagger of the website www.moneynet.co.uk advises setting a budget and sticking to it — that way you will have everything you need without the stress of overloaded credit cards once January arrives.

“It might sound like a horrible task, but making a budget plan is actually quite easy,” says Hagger. “Just decide what you are going to buy, make a list and stick to it. Don't be tempted by those goodies on offer, that sale rack you are walking past or the tasty little treats at the checkout. And don't try to keep up with the neighbours, either. You will only end up spending too much.”

He suggests shopping online, which can work wonders for your stress levels, as you will avoid all the busy, bustling shops and the dilemma of whether that must-have toy will actually be in stock.

It also helps you to avoid temptation so that sale bargain simply cannot fall into your basket unless you really want it to!

All the trimmings

Ask yourself how big the turkey really needs to be. You just need enough to feed the family and friends around your Christmas table, with a little left over for sandwiches and salad on Boxing Day.

“Don't go mad with luxury range Christmas items such as puds,” advises Andrew. “People won't be that bothered if they don't see the wrapper.”

It is worth keeping an eye out for special offers and stocking up as and when you see the deals. Go shopping with a friend for things like big tins of chocolates. They are often on ‘buy one get one free’ offers, so you can split the cost and share the savings. It is a good idea to buy wine in bulk as well. Lots of supermarkets offer extra discount if you buy six bottles.

You can also print off discount food vouchers at www.myvouchercodes.co.uk to save extra money — and don't be afraid to ask anyone joining you for lunch to contribute to the meal. They don’t have to hand over cash, perhaps provide the starter, or the cheese and after-dinner mints. They will enjoy feeling like they have helped and you will save some pennies in the process.

Penny-pinching presents

If you need to buy some make-up between now and Christmas, ask for free samples — they make great stocking fillers!

Those with toddlers should explore charity shops for quality secondhand toys in good condition. Wash them thoroughly, wrap them in Christmas paper and they will never notice the difference. Toddlers are often far more interested in the wrapping paper anyway!

For older children, splash out on a board game. It will keep the whole family entertained on Christmas Day and beyond.

And if that Christmas card list is making you feel guilty, send e-cards instead. It is more eco-friendly and you will save money on cards and stamps. Alternatively you could get the kids involved in making some.

It is also worth taking advantage of the ‘three for two’ gift deals on offer in many shops. Marks & Spencer and Boots have an enormous range suitable for the whole family — you will be amazed how the savings can add up.

“Speak to friends and relatives and agree a limit as to how much you are going to spend on each other and each other's kids," said Andrew. If you have a big family, maybe only buy for the children — adults are not going to mind when money is tight.

You can save even more by making your own presents — and friends and family will love the personal touch. Try knitting a scarf, cook or bake something delicious, wrap beautifully and tie it up with a beautiful bow, or ask one of the children to paint a masterpiece for granny or grandad and have it framed.

All decked out

Get the kids involved with making the Christmas decorations this year. Stock up on card, glitter, tinsel, glue and paper chains from discount stores.

Scour your local park for pine cones and use them as decorations at the base of candles or in pot pourri — you can even jazz them up with gold or silver spray.

Slice oranges and dry them slowly in a cool oven, then loop a ribbon through them to make into tree decorations.

Let the little ones help make your own edible decorations, such as gingerbread Santas or star-shaped biscuits decorated with edible silver balls. They willl look fantastically festive and will keep children happy when they're in need of a sweet treat!

Be eco with energy

You may have splashed out on festive outdoor lights — but do not leave them on all night! Just a couple of hours in the evening will do, to get everyone in the mood.

Try not to let your heating bill blow the budget: “Turn your thermostat down by one degree,” said Andrew. “It may not sound like much but could cut your heating bills by up to ten per cent.”

Keep all the curtains in the house closed when you go to bed to keep the heat in and use draught excluders by the front door to keep the cold air out.

Easy entertaining

If you want to go out, head for the nearest green space or beach to blow the cobwebs away on Christmas Day.

Your library should list local walks and other events to keep the family amused.

Look for budget family days out with English Heritage (english-heritage.org.uk) too, where kids can listen to storytellers or take part in Christmas craft workshops.

And, if you can't stand the thought of cooking, find a half-price restaurant meal deal from toptable.co.uk and let someone else worry about the washing up!