Keeping Christmas spirit high while keeping budgets low

We have a month left until Christmas, but the festive period doesn’t just bring tinsel and questionable jumpers, it can bring the cold sting of financial pressures and debt worries.

Setting a budget for Christmas may seem like a dampener on the holiday, but overspending and using short term solutions like overdrafts, credit cards and Buy Now, Pay later, can lead to starting the New Year with pressures to start payments. New Year, Same Debt.

So how can you start to cut down on costs? Look at who you’re buying presents for. I’m not saying cut immediate family out, but assess the people who you’re buying for. Do you need to join the work secret santa and spend £20 on a person you’ve never spoken to before?

I hear you calling me a Grinch, but how many times have you bought a gift for someone because they’ve bought you a gift, whether you can afford it or not? So having a conversation with friends about not doing presents this year, or setting a cap on gifts can save the dual stress of finding the perfect gift and dealing with the aftermath of the bill.

The biggest thing that people struggle with is sticking to budgets when shopping for presents. Say you’re shopping and your budget is £10, but you see something for £12.99. It might only be £3 extra, but when you’re shopping for the kids, your partner and other family members, consistently going over budget can easily turn that £3 into £300 very quickly. Online shopping can help you look around for bargains.

During Christmas, food sales boom, resulting in many households having excess food. Families frequently skip their usual choices in favour of luxury items and sweet treats. But could you really tell the difference between options like turkey and champagne? According to MSE’s Martin Lewis, 62% of people couldn’t. This Christmas, choose the products that are right for you and don’t assume the luxury option tastes any better.

If you remember Christmas as a child, chances are, you remember the experiences and traditions that come with celebrating Christmas, rather than what you ate or the toys you got. MSE has a range of free or low cost traditions to build those memories without breaking the bank, like making homemade decorations or leaving clues that Father Christmas has been.

Christmas can be a hard time. If you are struggling to manage debts or need advice, you can find information on our website or contact an adviser.