Christmas Money Saving Tips

Christmas will be here before we know it, to coincide with Talk Money Week, Nick Hill, money expert at the Money Advice Service, has put together these tips to help you stay on budget this festive season. 

With less than two months left before the big day and all the monthly bills and commitments you already have, you may end up spending more than you bargained for, facing a hefty bill come January.

It can feel like there is a great deal of pressure to spend over Christmas, but it’s never worth putting yourself through stress and worry in the New Year or getting into debt you can’t manage.

Here are some tips to get to keep your budget on track:

  • Set a budget- before planning the perfect Christmas. You can use the Money Advice Service free budget planner to get a snapshot of your spending. The average UK household spends around £530 on Christmas, rising to £700 if you have children. A good way to curb spending is to look at whether you overspent last year. Prioritise what makes Christmas special by writing a list of essentials, these may not all be gifts but rather Christmas traditions and time spent with loved ones.
  • Bring your children into the Christmas planning process! Our research shows that including kids in the budgeting process teaches them the value of money and helps resist ‘pester power’. Its ok to say ‘no’. Giving them a little money and assigning responsibility for a small part of the Christmas shop can help them feel included and give them an important role to play come Christmas.
  • Some supermarkets are taking part in Black Friday this year so consider buying your turkey or Christmas main now and freezing it until Christmas. For gift shopping, if you are planning on taking advantage of promotional shopping days like Black Friday, it’s always worth shopping around for the best price and quality. There are useful websites where you can also check how much certain products have been sold for before the black Friday. is one example that provides price history for products sold on Amazon. If pooling your money with others to buy someone an extra special gift, search for the best offers in advance.
  • Don’t be afraid to tell loved ones if money is tight or you can’t afford the additional expenses that rack up over the season, their reactions may surprise you. There are many ways to celebrate the festive period. Whether its agreeing to exchange gifts after the Boxing Day sales or gifting time to look after the children for a weekend or washing their car.
  • Try to avoid high-cost credit, as small debts can quickly grow and remember not to spend all your available cash. Cold weather can bring with it unexpected bills such as car trouble or a boiler breakdown.
  • If you do manage to stick to your budget over Christmas, why not take your skills into the New Year? Try setting yourself another goal, such as saving for your next holiday or for that rainy-day fund we all know we’ll need, its ok to start small. You could make it automatic by setting up a direct debt into a savings account that pays high interest. Taking control of your money is the best gift you can give yourself.


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