If you are feeling the pinch and concerned about your Christmas spending, you’re not alone. Read on for our guide to enjoying the festive season on a budget
With increases in the cost of living in the UK affecting almost every aspect of our lives, it might not come as a surprise that it’s also expected to hit Christmas spending this year.
A recent survey by KPMG found that 39% of people said they will have a smaller budget to spend on gifts this year, 34% said they’d be cutting back on festive groceries, and 35% expect to curb their spending on eating and drinking out this Christmas. The age group hit hardest by the rise in inflation is 35-44-year-olds, but people of all ages are battling with higher energy, food, and fuel prices as well as not having a savings reserve to pull from.
If you need to stick to a strict budget this Christmas, don’t worry; it’s still more than possible to make the most of the festive season without breaking the bank. Read on for our top tips on how to enjoy Christmas on a budget:
Spread the cost over time
With present buying, festive food, parties, and more, December can be a very expensive month. One of the best ways to keep control of your budget and avoid going into debt is to split the cost over time. If you can, buying things little and often could help you avoid the stress of facing a big bill at the end of the year. You might be able to pick up gifts throughout the year or start buying non-perishable food and drink from the autumn onwards. Adding an extra £20 to your food bill each month for four months could be a lot less painful than spending £80 more in December.
Set a present spending limit
The old adage is true, it really is the thought that counts. A meaningful Christmas gift doesn’t have to be an expensive one. Of course, it can be difficult to say no to children who have their heart set on a pair of top-of-the-range trainers or the latest gaming console, but if you have older friends and family to buy for, consider agreeing a spending limit. Depending on your budget and how many people you exchange gifts with this limit could be anything from £10 to £100. It’s also a great way to set expectations and avoid disappointment.
Suggest a Secret Santa gift exchange
If you have a large family or group of friends that you usually need to buy for, one way to give gifts on a budget is to set up a Secret Santa. Instead of buying for every individual, you each pick a name from the hat and buy a gift for that person. Someone else will have picked your name too but keeping it all a secret makes the surprise even better. You could agree a set spending limit or a specific theme for your gift too.
Shop around
One of the advantages of starting your Christmas shopping early is that you can take time to shop around for the best deal. Check different sites online and in-store and look out for discounts and sales. When you’re panicking and shopping last-minute, you might be more likely to buy at the first place you visit or pay a premium for services like express delivery. Be wary of buy now, pay later offers or discounts that come with opening a store credit card too. These are both types of debt and if you fall behind with your repayments, that could affect your credit score.
Choose pre-loved gifts
Don’t dismiss pre-loved gifts when Christmas shopping, especially if you’re buying for someone who loves designer labels or vintage pieces. Pre-loved doesn’t have to mean damaged or unwanted, in fact, shopping on online resale sites like Depop, Vinted, and eBay or visiting your local charity shop could turn up hidden treasures and unique gifts you wouldn’t find anywhere else. And even better, you could bag a bargain!
Get everyone involved in food and drink
If you’re hosting Christmas this year or holding a get-together ahead of the big day, you can cut the cost by making it a potluck. Festive groceries can be expensive, and the most popular items are rarely discounted. When you’re shopping and cooking for a large group of adults and children, the cost can quickly add up. Instead, ask your guests to bring a dish or drink each. You could task one person with bringing dessert, another with bringing the roasted vegetables, and another with picking up the traditional tin of Quality Street.
Swap expensive groceries for cheaper alternatives
Shopping around for the best deal doesn’t just apply to Christmas gifts, you can be savvy with your supermarket shopping too. Take time to check the prices at your favourite shop compared to other retailers and look out for any limited time offers that you can pick up throughout autumn. You might also be able to make your budget stretch further by swapping pricier items for cheaper alternatives, perhaps switching out your turkey for chicken or prosecco for cava.