Saving money this Christmas

With just two weeks until Christmas, we know many families will be feeling the pressure at this time of year. Our support line team have put together this handy guide to managing the cost of the festive season, as well as information on how we can support you with any money worries.

Our financial wellbeing advisors can provide expert support to help families struggling with the cost of Christmas or increased energy bills over the winter months. If you’re facing an uncertain winter. You are not alone, help is available.
In the last year, our Children First team have helped families gain £1.9 million in income and manage more than £834,000 in debt.

Here are our top tips for saving money this Christmas.

Set your budget before you shop

We spend around an average of £600 on Christmas related products and activities including food, gifts, decorations, socialising and travelling, around 30% more in December than we do in other months.

Set a budget early and stick to it. Check bank statements from previous years to look at how much you spent. Break down how much you will spend on gifts, food, drink, leisure and entertainment as well as factoring in your usual monthly costs. Don’t be afraid to “cut your cloth” to the size of your budget. It is far better to do this than to start the new year with money worries.

We can support you to prepare a budget for Christmas.

Keep track of spending and bills due

Setting a realistic and manageable budget makes it easier to keep track of spending. To track your spending, you can use whatever system works best for you, whether that’s a pen and paper, an app on your phone or a spreadsheet. You can also opt into alerts via online banking if your current account dips below a certain amount.

Include your normal bills for the month in your spending to prevent falling behind with payments.

Do a Secret Santa/family gift

If you've got a lot of people to buy for, such as extended family and friend groups, suggesting a Secret Santa is a great way to keep costs down for everyone.

Similarly, buying a 'family gift', such as a large box of chocolates, a hamper or a board game is a great way to gift to a group rather than buying individual presents.

Save with own brands

Just because it’s Christmas, doesn’t mean you have to spend on big brands. Sometimes supermarket own brands can be just as nice. It’s an industry secret that own-brand products can come from the same manufacturers as the big brands but are simply packaged differently. Carry out your own blind test with the family and see if they notice! You could save as much as 60% compared with big brands.

Always check out the supermarket for multibuys, special offers and discounts. This might be the ideal time to use up those loyalty card points too!

Avoid 'buy now, pay later' schemes like Klarna

Tempting as these schemes are in the heat of the moment, try to avoid them unless you have a plan in place for repaying the loan within the interest-free period. Otherwise, after the 0% phase ends, you’ll be charged a high interest rate and that gift, outfit or appliance could end up costing you far more.

Not only will it end up costing you more in the long run, but it could have a negative impact on your credit score if you default on payments.

Children First can offer free, confidential financial wellbeing advice and support to help you stay money savvy this Christmas.

Get in touch on 08000 28 22 33 free, browse our website for advice and support, or start a webchat at https://www.childrenfirst.org.uk/get-support/support-line/

You can talk to us seven days a week.