The Cost of Christmas: Navigating the Festive Financial Crunch

Often, the run up to Christmas involves buying this year’s gifts with next year’s money – don’t let that be the case this season!

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3rd October 2024

Often, the run up to Christmas involves buying this year’s gifts with next year’s money – don’t let that be the case this season!

As the mornings get frostier and mince pies appear on supermarket shelves, a familiar anxiety begins to creep in. The festive season is upon us, bringing cheer, goodwill, and… eye-watering price tags. But don’t worry! This year, we’re tackling the Christmas spending spree with true British resolve.

Figures from the Bank of England show that the average UK household spends 63% more in December than any other month. Factor in the soaring energy costs and inflation, and we’re facing a proper financial pickle.

So, how do we keep the festive spirit alive without emptying our bank accounts? Let’s explore some strategies.

1. Start now, thank yourself later

Procrastination is the Grinch of good deals. Begin your shopping early. Spread purchases over the coming weeks to avoid a last-minute dash. This tactic not only eases the strain on your wallet but also lets you capitalise on early bird offers.

Or, cut the cost of your everyday essentials, like broadband! Check your postcode to find a deal and start saving today.

2. Become a savvy sale sleuth

Don’t settle for the first price you spot. Shop around! Use comparison sites or just do your research to avoid overspending.

Better yet, time your spending right – with Black Friday and Cyber Monday on the horizon, you could bag a bargain in the sale. But beware! Not all deals are bargains. Learn to spot genuine offers and do your research.

3. Get creative with pressies

Who says every gift needs to come from John Lewis? Homemade presents often pack more of a punch. Whip up some Christmas puddings, craft a photo album, or offer services like dog-walking or gardening. Your bank balance (and the recipients) will be chuffed.

4. Team effort Christmas dinner? Absolutely!

Hosting the family feast? Make it a team effort, where everyone brings a dish or course. Not only will it cut costs, but it will add variety to the spread and start a new family tradition!

5. Give the gift of experiences

Material gifts are lovely, but experiences create lasting memories. Consider gifting a cookery class, theatre tickets, or a day out. These often provide more bang for your buck and create priceless memories.

6. Budget like a boss

It might sound obvious, but it’s crucial. Set a total Christmas budget and break it down: gifts, food, decorations, the lot – and make cutbacks where you can. Instead of buying a new tree every year, why not invest in a quality artificial one? Or swap pricey pantomimes for a festive film night at home.

7. Plan for next Christmas. Yes, really!

Once the festivities are over, start planning for next year. Set up a dedicated savings account and squirrel away a small amount each month. By next December, you’ll have a tidy sum to cover your Christmas expenses without breaking a sweat.

Remember, Christmas isn’t about lavish spending. By implementing these strategies, you can focus on what really matters without the financial hangover come January.

This year, let’s make our celebrations both merry and economically wise. Your future self will thank you for it!

Source: Aviva

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