Cutting the cost of Christmas

Autumn is upon us and our attention will soon turn to Christmas!  A time of festive cheer… or financial woe?   With our tips below you can be sure to be full of merriment without breaking the bank and without having money worries to last into the New Year.

Remove unnecessary gift giving

Christmas has become a retail festival – but it doesn’t have to be that way.  Think about why you are giving and to whom.  Consider the recipient’s viewpoint too, as giving creates a need for them to give back.

Why not agree to a secret santa with family or friends?  Pick names out of a hat, buy one present in the group and stop buying unnecessary gifts.

Make a list
Don't go on impulse. A list will guide you and keep your spending on the straight and narrow!

Supermarket savings
Look out for supermarket schemes, collecting points or vouchers to spend in store.  Some schemes allow you to double up your points’ value, so you could use these to buy toys and gifts, helping you stay on budget.

Stick to your budget
A typical family spends more than £820 on Christmas, according to YouGov.
Only spend what you can afford and not want you want to afford.
In large families you could buy for the children only or make decisions on limiting the cost.

Start budgeting early
In January you could always start saving and budgeting for next year!. Make a Christmas cupboard and buy gifts throughout the year (especially if you see them on special offer).

Budget for everything
Remember it's not just presents.  Think about the food, decorations, wrapping, Christmas nights out, fuel etc.  Save month by month to cover the full amount, so
you'll not have a shock when December comes.

Make, don’t buy

A handmade gift is personal, thoughtful, unique – and cheaper!  Think knitted scarves, framed photographs, home-made biscuits or Christmas cake, You can make your own Christmas decorations too, which is also a fun activity for children.

If you still need to ‘put it on the plastic’ there are a few credit card options:Cash back credit cards.  These pay you every time you spend on them, meaning money back on your gifts.  Make sure you set up a direct debit to repay in full every month so it's interest-free.

0% on purchases.  Apply for a card which give you 0% interest on purchases so that you can pay off the balance in instalments rather than paying the interest.  Make sure you always pay the minimum amount.

Added security.  If you spend over £100 on a credit card and a firm goes bust before your goods have arrived you get extra protection.  Using a credit card to pay even partly for something means the card company's jointly liable for the whole amount.

Remember insuranceSome insurers automatically increase home contents insurance cover during the Christmas period.  Before you switch insurers though, temember to look at the all-round best deal for your home and needs.  Our advisers can help with home insurance too, so give us a call and we can look into options for you.