How can I save money for Christmas?
We all know Christmas can be expensive and stressful, pressure to please loved ones at Christmas is a major reason why people overspend during the festive season. So, if you are on a tight budget, or just want to save some pennies this Christmas, read some of our top tips to help in the run-up and avoid starting the new year with a financial hangover.
Set a budget and spread the cost:
According to the Bank of England “A typical household in the UK spends just over £2,500 in a month (which is the amount of our average refund!), but in the run-up to Christmas, our spending habits change. We spend on average almost £740 more in December, which is 29% more than in a typical month.” Presents, of course, make up a lot of the expense, however, spending on food and alcohol is second highest! So, setting a budget and spreading the cost will really help minimize the impact on your money.
Setting a budget is simple, make a list (and check it twice) of the family/friends you will be buying presents for, and make a note of how much you can afford for each person after bills and essentials are covered.
Cancel direct debits that should have already been cancelled
A study carried out by Sky Mobile in 2018 revealed that the average Brit will waste more than £30,000 in their lifetime, just by simply forgetting to cancel direct debits. Research shows that the typical adult pays just over £111 a month on direct debits, however, £40 of that is for products or services that have either been forgotten about or are never used. Just think how much you can save for Christmas if you cancel that gym membership you don’t use, or maybe that video streaming service.
Sophia Ahmad, director of Sky Mobile said: “It’s important to keep an eye on payments which may unnecessarily drain our funds”.
Save cost on food/drink hosting over the festive period
If you are hosting a party or dinner, think about how many people will be attending, and how much food/drink you will be needing, even ask guests to contribute and bring a dish, or even drinks – this can drastically cut your holiday spending.
Once you know how much you will be spending, calculate a total and divide it by the months left before Christmas, then you know exactly how much to save! For example, if you started saving £30 a month from the beginning of the year, you will have £360 to spend by Christmas!
Take advantage of sales and discounts:
It’s never too early to save for Christmas, the earlier you start saving, the less you need to spend and there will be no manic last-minute panic buying! Supply chain issues could mean less availability and higher prices in December, so if you see a gift on sale, grab it when you can because it may not be around for long.
Take advantage of January sales after Christmas. Decorations, crackers, and wrapping paper could be discounted up to 50%! You can even get creative and make your own Christmas decorations, cards, or wrapping paper.
Re-use decorations from previous years, don’t follow new Christmas trends every year, and decide to re-decorate with brand new baubles and tinsel, this will do nothing but eat into your budget!
Secret Santa and ‘family gifts’:
If you have a lot of people to buy gifts for such as a large friend group, extended family, or colleagues, the list adds up and it can be pricey. A great way to keep costs down is buying a ‘family’ gift for the whole family such as a hamper full of treats or a board game.
Don’t be afraid to buy good-as-new-second-hand gifts, or, if you can bake or craft a handmade gift it doesn’t need to be expensive, it’s the thought that counts!
Another great way to avoid new year debt is to suggest secret Santa to your friend/family group. Secret Santa involves putting the names of everyone in your group into a hat, each person then pulls a name out. Whomever they pluck from the hat is who they buy a gift for and will remain anonymous, this way everyone receives a nice gift, and no one is left bankrupt as there is usually a set budget that everyone agrees on.
