Christmas is fast approaching and some planning now can help avoid post Christmas financial blues!
After the Christmas fun is over, it’s easy to end up facing big bills in the New Year. With a bit of planning, it’s possible to have a great Christmas without running into trouble next year. Just Credit Union have put together a few ideas to help you manage your money this Christmas.
Talk to your friends and family
Pressure to please loved ones and to give children the perfect Christmas is top of the list of reasons we overspend during the festive season. When you’ve worked out how much you can afford to spend on presents, talk to the people you plan to give gifts to about how much you can afford to spend and other things you might do instead. This might feel like a difficult conversation, but it helps to remember that other people will be struggling this Christmas. If you’re spending too much on presents for loved ones, they might feel the pressure to spend the same amount on you, even if they can’t afford to. To help start the conversation The Money & Pension Service have provided some tips about talking to your friends and family about money in their guide How to have a conversation about money
Get creative; people often value time with you rather than a present so perhaps arrange to do something together during the Festive period rather than buying presents. Can you team up with other family or friends to buy a present for someone and share the cost? Can you run a Secret Santa for a group of friends so each gets a gift but you don’t have to buy a present for everyone? Can you agree a maximum amount with a friend or family member that you are both comfortable with?
Set a budget
Have a think about what money you have going in an out and how much you can really afford to spend on Christmas, write it down or use a budget planner. Next make a list of family and friends you would like to buy a present for and what you can afford to spend on each person. Are there people on that list you could have a chat with about changing present arrangements this year so you both save money?
If you are providing a meal, think about how many people will be coming and how much you will need to spend on food and drink. Can you share the costs with your guests? Could someone offer to bring along the Christmas pud!
Once you have your budget stick to it! Try to put a little aside each week to meet your budget but if it’s to late this year put a note early in your 2026 calendar to start a Just Credit Union Christmas savings account for 2026.
Don’t use unplanned debt to tide you over
A quarter of people in the UK are worried about going into debt this Christmas. It might seem easy now to pay for presents and food on your credit card or overdraft, but it can soon become unaffordable and lead to financial problems. As tempting as they are, try to avoid Buy Now Pay Later offers unless you have a clear plan to repay the loan within the interest free period. Find out more about the pitfalls with our Buy Now Pay Later Guide.
If you do need to borrow this year, make sure you have planned the borrowing and its from a reputable registered organisation. Just Credit Union make sure any loan is affordable and we’ll even set you up with a savings account, so you have some money set aside for a rainy day or for next Christmas. Because we care about you, if we think you are planning to spend a little too much, we will let you know and offer an amount you can comfortably afford, Affordable Saver Loans.
Saving money on your Christmas shopping
- Start early! With your list keep your eyes peeled and grab the bargains as they come up but don’t be tempted to buy things not on your list just because they are reduced
- Start a Christmas cupboard and make sure the things you buy are still there when the Festive season arrives!
- Do your price research there are loads of resources online to help find the best price
- If you are looking at pre-Christmas sale items, make sure you really are getting a great discount
- Don’t rule out second hand you may find a virtually new and often still boxed item on auction and local sales websites
- Sort Christmas post early make sure you know the last guaranteed Christmas posting date for the cheapest services
- Do you have things lying about the house no one uses any more perhaps some of last year’s presents? Get on the internet and get them sold!
- If you need to travel by train or bus book it early and get the best deals
- Search for discount codes which may get you a few percent off or free delivery but always check you are still getting the best deal
- Support local craft markets and shops they can be a great place to find unique low-cost presents
- Plan each meal over the period and don’t be tempted to buy lots of extras just because its Christmas it may all end up in the bin!
- Don’t be tempted to replace your normal foods with the super deluxe version they may be a lot more expensive but not necessarily better tasting
- Drop into your local “Pound Shops” you’ll be surprised what you might find
- Try a few Christmas prize draws, don’t forget Just Credit Union always have some great prizes
- If there are people you won’t see until after Christmas wait and buy in the post Christmas sales
- Make your own decorations and gift tags the kids can have a great time getting creative
- Don’t be frightened to drop an expensive Christmas tradition, do you really need a turkey? They are big and expensive try something different!
Don’t be afraid to share your worries and ask for help
With covid and now the cost of living increases many people are worried about money! There’s often a link between struggling with money and mental health problems. Feeling low can make it harder to manage your money and worrying about money problems can affect your mental wellbeing. If you think money matters are affecting your mental health, this guide Money Problems and Mental Health can help.
If you need some help and advice with your debts, we have put together this guide to free and reputable sources of help .
