As the holiday season approaches, the excitement of Christmas often comes with the stress of financial strain, especially for those with children. Societal expectations and traditions can pressure people to spend, spend, spend, and when you add up the cost of gifts, food and decorations, Christmas can become very expensive.
There’s also the desire to create a magical experience for loved ones, which can lead to overindulgence and overspending. Retailers are aware of this and capitalise on the festive atmosphere to launch enticing sales and promotions, tempting you to make impulsive purchases beyond the pre-planned budget. In addition, the festive season usually involves travel, parties, and special events, which can take costs even higher.
Yes, there is pressure to spend at Christmas. But there are also ways to try to keep costs down as much as possible and avoid some of the unnecessary purchases that comes with the season. So how can we get through the Christmas season without breaking the bank and what are some of the common pitfalls people should be aware of in the run up to Christmas?
Here are five top tips to help you have a merry Christmas whilst keeping costs down.
1. Learn to budget effectively
One of the most common financial pitfalls people encounter during the Christmas season is failing to budget effectively. Budgeting doesn’t have to be a daunting task; it can be an enjoyable and empowering experience. By tracking expenses and assigning every penny a purpose, you become more aware of your spending habits and better appreciate the value of what you’re purchasing. Utilise budget planners, tracking apps, or even a simple pen and paper to plan your finances meticulously. Setting a realistic budget serves as a foundation for informed purchase decisions and helps to keep you overspending without realising.
2. Navigate the supermarket effectively
The Christmas shopping spree, often the most expensive of the year, requires a strategic approach to keep costs down. To make the most of your budget, pay attention to the price per 100 grams (or other relevant units) when comparing products, as the packaging can be misleading in the amount of food you’re getting for the price. Also, try to avoid purchasing items at eye level, as supermarkets often purposely place higher profit-margin products there. Instead, look high and low for better deals and be cautious around the ends of aisles, which usually showcase the expensive impulse items.
You can also consider buying loose vegetables, instead of pre-packaged ones, to save money and reduce food waste. Make the most of rewards points from loyalty programs like Nectar or Tesco points to offset your Christmas shopping expenses as well. Additionally, explore the yellow sticker section for discounted items, especially during the prime shopping hours between 6-8pm.
3. Managing expectations and look for bargains
Gifting during the holiday season can pose a real financial challenge. Manage your family’s expectations by openly communicating your gifting plans and who you plan to buy for. Consider implementing a family Secret Santa – with a spending limit – to ease the financial burden. You can also embrace second-hand shopping for unique and budget-friendly gifts from charity shops, car boot sales, or online platforms like Vinted. Often you can get items as good-as-new for a fraction of the cost.
Another tactic is to start shopping early, taking advantage of sales and discounts throughout the year, rather than November and December. Keep a list of purchased gifts to avoid overspending and ensure thoughtful gifting. You can also consider alternatives to traditional plastic toys, opting for practical and sustainable gifts that bring joy throughout the year.
4. Be tech-savvy
Technology can be your ally in saving money. Take a look at browser extensions like Honey and Karma, which automatically apply discounts during online shopping. These tools help you find the best deals without too much effort. It’s also worth engaging with price comparison websites to track the history of product prices and identify genuine bargains, as to not be duped by inflated prices or fake ‘discount deals’.
5. Keep track of your mental health
If you’re struggling with managing money or experiencing financial anxiety, you might want to seek some support. Organisations like Citizens Advice and StepChange offer assistance to those in debt. You can also join online communities or apps that foster a supportive environment and provide opportunities for financial assistance through giveaways or prizes.
It’s worth remembering that the Christmas season is about family, friends and joy, not social pressure or overspending. Avoid the temptation of ‘buy now, pay later’ schemes, and prioritise experiences over material gifts – you may even find you appreciate Christmas more by doing this! The holiday season can be a memorable and warm celebration without the burden of excessive spending, so stick to these five tips for a merry Christmas without breaking the bank.
