Home Self Help Managing money this Christmas

Managing money this Christmas

20 November 2024
Food & Finances
Self-help article

We know that the pressure to have a “perfect” Christmas can cause many difficulties for families. Money worries are one of the most frequent reasons why families contact our FamilyLine service, and the festive season only pulls the purse strings even tighter.

To help you manage your finances and reduce stress over the season, we’ve joined up with our partner Barclays LifeSkills to give you some tips to help you stretch your money further this year and plan for the future.

Write a list of your priorities

The first step to understanding what money you can put towards Christmas is to work out your living costs. This includes what’s coming in, what’s going out and when. Making a budget gives you a clear picture of where your money goes and shows you where you might have a chance to put money aside.

Start by writing down the things you could go without and those you cannot – you can use the Barclays LifeSkills budget planner to get started.

The first step to understanding how much money you can put towards Christmas is to work out what money is coming in, what’s going out and when.

Set a budget and stick to it

There can be tremendous pressure at Christmas to fill the cupboards and put plenty of presents under the tree, but spending money you don’t have can add to your worries.

By setting a budget, you’re less likely to get caught out by unexpected bills or costs at times such as Christmas. That way you can prioritise what really matters to you and ensure you don’t let your spending get out of hand.

Again, you can find out more about planning and creating a budget to take control of your finances using Barclays LifeSkills.

Plan ahead to cut other Christmas costs

If you’re travelling by train at Christmas, don’t forget to book as soon as possible, as ticket prices can be much higher than other times of the year. Look into split-ticketing or getting a discount on off-peak railway journeys with a Young Person’s or 26-30 railcard.

Stock up on essential food and drink while it’s still available at a competitive price. It’s surprising how much you can freeze in advance and use in delicious leftovers post-Christmas. Have a look through your cupboards to see if there are any ingredients, like stock cubes or mulled wine sachets, you can use up.

Agree spending limits with family and friends

A large network of family and friends is usually a recipe for happiness, but this can mean the spending really adds up at Christmas. Have an honest discussion with your friends and family about a realistic spending limit, or even whether you might want to pause on spending altogether.

Another way to manage the cost is to suggest Secret Santa for your group of friends or relatives. This means you’ll only buy one present for someone else in the group, picked anonymously and with an agreed budget. Websites such as drawnames can help to organise it for you.

If you don’t suggest Secret Santa, you could still propose a spending limit. Christmas is an expensive time for everyone, so you might be surprised at how popular a spending cap could be.

Suggest Secret Santa for your group of friends or relatives, so you'll only buy one present for someone else in the group. Or you could propose a spending limit on gifts – you may be surprised by how popular this suggestion often is!

Be a savvy shopper

Special offers and Christmas sales seem to start earlier every year, and it can be hard to resist buying more than you planned. To avoid being tempted by “deals” and advertisements, make a list of things you need to buy before shopping. You can do this for both gifts and groceries.

Discount voucher sites and finding pre-loved items are great ways of buying things at affordable prices. Look for the sales! If you can find what you’re looking for at a discount or on sale it will free up some money for something else. This is also a great way to get cheap Christmas cards, gift wrap and tags ready for next year – just check the post-Christmas sales.

Before you start shopping, check out typical prices online for the items that you need to buy. If you see them discounted, you’ll know whether it’s really a bargain.

Recycle wrapping paper and gift bags

For younger children who tear the paper to shreds, saving and reusing the wrapping paper might not be viable. But we often buy too much wrapping paper and there are partial rolls that can be saved and used again next year.

Gift bags are also highly reusable, so make sure you store them away for next Christmas.

Start saving early

You can start saving money at any time in the year, but the New Year provides a good opportunity to reset and start the year afresh. We recommend setting up a separate savings account specifically for next year’s festive season. That way you can save a little each month and spread the cost of an expensive period over a whole year.

Saving money isn’t just a matter of being able to put cash aside when you can, it’s also about getting the best deal or tariff you possibly can on any of your household goods or services.

Watch this virtual session on how to start saving from Barclays LifeSkills for some top tips.

Pay off credit cards quickly

Sometimes borrowing at Christmas is unavoidable. In these cases, make sure you pay off credit cards as quickly as you can, as it’s an expensive way to borrow money in the long term.

Explore the Barclays LifeSkills virtual session on managing debt to find out more, including how to review your spending and who to contact for additional support.

Learn how to better protect yourself against fraud

While you’re busy seeking out the perfect festive presents, some fraudsters will be doing their best to have a happy Christmas at your expense – so make sure you stay one step ahead.

If you’re clicking through to a website from a link in an email or on social media, check the bar at the top of your browser to make sure the website address is legitimate and look for warning signs like poor-quality logos and images. Read more in this Which? guide: How to spot a fake, fraudulent or scam website.

Learn more about how to protect yourself from fraud and stay safe online using guides from Barclays.

Help is out there

If you’re struggling this Christmas, remember help is out there. Family Action’s FOOD Clubs and Toy Appeal are set up to help struggling families, and you shouldn’t hesitate to use them if you need to. If you need to talk to someone, you can contact our national helpline, FamilyLine, for free listening support, guidance and information.

You could also consider visiting your local foodbank and other local charities and community organisations, such as churches and children’s centres.

Remember money isn’t everything

The need to make ends meet during the festive season can have a huge effect on our lives. But it’s important to remember that at its core, Christmas is all about tradition, family and community – things which can be enjoyed at nearly no cost at all.

We hope your Christmas is as magical, relaxing and rewarding as possible, regardless of your budget.

Call, text, email or web chat FamilyLine

If you’re feeling overwhelmed, worried or upset about any aspect of your family life, FamilyLine is here for you. We offer free emotional support and guidance on family relationships, conflict, parenting, caring, financial worries and more.

Contact FamilyLine

Read more...

Browse all self-help articles

Tips and tricks for perfect packed lunches

Help with managing your finances through the cost-of-living crisis

Feeding your family on a budget during the summer holidays

Breakfast at home: top tips

Breakfast at home: what the research says

Breakfast at home: recipes and videos

Breakfast at home: family fun

Breakfast at home: nutrition and wellbeing

Breakfast at home: get organised