Managing finances at Christmas: Tips for a stress free holiday season
The festive season is a time for celebrating, but for many, Christmas brings financial pressure that can take away the joy. With a little planning, it’s possible to enjoy the holidays without overspending. Here are some tips to help you manage your Christmas finances and keep the season bright without breaking the bank!
Set a budget
Start by deciding how much you can comfortably spend on Christmas overall, including gifts, food, travel, and decorations. Divide this budget into categories to help you keep track, and stick to it.
Keep your eyes peeled for discounts and deals on our vouchers, bargains and sales pages.
Work out what you can afford
Calculate your budget and work out you can afford to spend? Christmas is just for one day – don't ruin the whole of the next year for it.
Pro Tip: Use budgeting apps or spreadsheets to stay organized. Keeping an eye on your spending can help you make adjustments if you’re close to going over your limit.
Prioritise thoughtful gifts
Giving gifts doesn’t have to be expensive, many people appreciate the thought and effort more than the price tag. Consider DIY gifts, baked treats, or experience based presents, like a day out together, rather than opting for expensive items.
Tip: Make a list of people you’re buying gifts for and set a spending limit for each person. This keeps you on track and makes shopping easier.
Festive Fivers (£5 gift ideas)
See the 50 Festive Fivers for the full list and here are some of our top picks which definitely still work toda
- Santa's Sleigh Bell, plant a fallen bell in the garden on Christmas morning, saying it's a fallen bell from "Santa's sleigh".
- Fill up a box with loads of blown-up balloons and wrap it – it's sure to provide hours of fun and shouldn't cost more than a fiver. Please supervise very young children, as balloons can choke them.
- Elegant chocolate slabs. You pay £7+ in fancy shops, but homemade chocolate slabs are easy and cheap to make.
- Be wary when buying gift cards
- Here are 20 free (or very cheap) traditions to create memories, such as driving round after dark to admire twinkly streets.
Track sales and shop smart
Sales and early December deals, can be great for finding gifts at lower prices. Keep a list of what you want to buy and be patient, waiting for the best prices if possible.
Reminder: Make sure you’re only buying things you need or had planned to buy. It’s easy to get caught up in the excitement of discounts.
Avoid unnecessary debt
It’s tempting to put holiday expenses on credit cards, but this can lead to long term debt. If possible, pay in cash or with your debit card to avoid extra debt going into the new year. If you do need to use a credit card, have a repayment plan in place and aim to pay it off quickly to avoid high interest.
Plan Christmas meals mindfully
Christmas meals are often lavish, but they don’t have to be. Create a meal plan and shopping list to avoid overspending on food. Preparing dishes in advance or asking family members to bring a dish each can reduce costs and spread out the work.
Look for free or low cost festive activities
Festive fun doesn’t have to come with a high price. Look for free local events like Christmas markets, carol singing, or community light displays. Organise movie nights at home, do holiday crafts, or bake cookies with loved ones to create lasting memories without a big price tag.
Plan ahead for next year
If finances are tight this year, start planning early for next Christmas. Setting aside a small amount each month can help reduce financial stress by the time December rolls around. Take advantage of post Christmas sales for next year’s decorations and wrapping paper
Haven't used it since last Christmas? Sell it
If a few quid more in the Christmas fund would really help, selling things via eBay's a good way to start – 40+ eBay Selling Tricks guide is a crash course.
Selling on Vinted is a brilliant way to make extra cash by flogging your own wardrobe – especially as there are NO fees for sellers. For collection only items, Facebook selling is another great option.
If you prefer speed and ease rather than max price, several sites let you enter details, they offer a price, and you post goods, for example books, for free. Full info in our Boost your income guide.
Debt worries over Christmas? Get help
If you're struggling with debts, and it's giving you sleepless nights, then free one-on-one debt help is available. They're there to help, they get really busy in January, so get your appointment now.
Read a Debt Help guide for a full list of free one-on-one help options.
Can't afford Christmas?
If you can't afford Christmas, it may be possible to relieve pressure, increase happiness and avoid the nightmare before (and after) Christmas.
As Martin Lewis said in his Christmas Cold Turkey blog: "If you're really struggling and have nothing, see family [if possible this year], spend time, think about life, watch the telly, but don't spend money on it. Christmas is just one day. Far more important is a happier, financially less-stressed New Year."
The heat is on
Jimmy, who is an energy expert at the charity National Energy Action runs energy awareness courses for people struggling to pay their fuel bills. Jimmy runs sessions at The Life Rooms and at Childrens Centres across Merseyside. He has changed the focus of his awareness sessions to include ways for people can control costs and keep warm and health.
Jimmy has shared energy saving tips in our latest MC Magazine