With the Covid-19 pandemic impacting the last two Christmases, this year is set to be extra special for many people. For the first time in three years, people will be able to travel and gather together to celebrate Christmas as they usually would, and as families and friends resurrect traditions that were temporarily put on hold it will, undoubtedly, be a period of great celebration for many.
However, with the cost of living rising putting increasing pressure on our finances, the possibility of overspending this Christmas could be considerable; especially given the desire to make up for the events of the last three years.
Here we provide some tips and advice on how to make your money go further this Christmas, whilst still ensuring it is the magical, festive celebration we all deserve:
Remember the meaning of Christmas
Whilst the hype and marketing surrounding Christmas can be difficult to ignore, try to remember that Christmas is about more than spending money and overindulgence. In its truest sense, Christmas is a time to celebrate the birth of Christ, although for most people this is no longer the main reason they celebrate Christmas. It is an opportunity to spend time, share gifts, and make happy memories with those they love. If money is tight, keep this in mind whilst planning your Christmas as it doesn’t become special because of how much money you spend, it is more about whom you spend it with.
Make a budget
The urge and pressure to overspend at Christmas is considerable. However, by making a Christmas budget, and sticking to it, you can keep track of your spending and avoid creating a situation where you are still feeling the financial effects of Christmas long into the New Year. For many people, the worst hangover they have at Christmas is not from having too much wine with dinner. It’s the financial hangover they endure as they feel the impact of Christmas overspending long into the new year.
Set Expectations
If money is tight, manage people’s expectations early! Be honest with friends and family about the fact you won’t be buying the sort of gifts you previously would have; people will understand and probably be relieved that they can cut back on their spending too!
Adopt ‘The Rule of Four’
The temptation to shower children with a multitude of Christmas gifts can be considerable. However, they are often cast aside once the excitement of Christmas is over. Avoid wasting money on gifts that will soon be consigned to a cupboard by adopting ‘the rule of four’ when it comes to children’s gifts as it will help stretch your budget that little bit further:
- Something to wear.
- Something to read.
- Something they want; and
- Something they need
Give time and get creative!
In the modern world, one of the things many people really want is ‘more time’. If you have spare time, consider gifting it to friends and or relatives as their Christmas gift in the form of a voucher. This could be in the form of a “childcare voucher” for those with young children, a “dog walking voucher” for those with a four-legged friend, or for anything else that will give someone some time back in their hectic life. If you are creative, consider making gifts for friends and family. Whether it’s a calendar for Grandparents featuring photos of their grandchildren, a bottle of homemade liqueur, cakes or cookies, when money is tight people appreciate the time, thought, effort and love you put into homemade gifts.
Don’t try to do everything
The Christmas period can potentially be a busy time for many people. As well as family Christmas celebrations, there may be other events and activities going on that you are invited to including parties, meals out and get-togethers with friends, and sporting events. Whilst the temptation and pressure to do everything on offer can be high, don’t! Look at your budget, decide what is really important to you and accept that you cannot do everything at this financially demanding time of year.
Have a Secret Santa
We all enjoy the look of delight on someone’s face as they open a gift. However, if you have lots of people to buy Christmas gifts for, it can prove to be incredibly expensive. One way to reduce the cost of Christmas gifts is to suggest to those you are spending Christmas with to do a ‘Secret Santa’. You can set a budget which everyone can afford, reduce the stress and cost of buying gifts for everyone, and you’ll all still have something special to open.
Happy memories needn’t cost much
If we are honest, we remember who we were with and what we did at Christmas far longer after the gifts we received. Whilst Christmas is steeped in tradition, there is nothing to stop your family from making its own new traditions to make Christmas the fun, memorable and special celebration we want it to be, without it costing a fortune. When it comes to Christmas, there are no set rules, so make it a special day that works for you and that you’ll remember for all the right reasons.
Whatever you are doing this Christmas, and whomever you are spending it with, we wish you a wonderful, happy and healthy Christmas. Merry Christmas!
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