Tips to Save for Christmas*

Christmas is one of the most expensive times of the year for most of us, especially as parents! According to the Bank of England, the average UK household spends £500 more in December than in other months. However, according to the Independent, families with children under 18 will spend anything from £1000 to £2700 on Christmas! Whether you have small Christmases or extravagant ones, you’re likely going to have to get saving.

Credit

With the big day about three months away, it’s the ideal time to consider how you’re going to afford it. It’s hard to pay for presents, food and celebrations out of one paycheck alone, so save up now so you can enjoy the best Christmas possible.

I’ve teamed up with cashasap.co.uk, who are FCA regulated lenders of short term loans, to bring you some saving advice and ideas.

7 Tips To Save Up

1. Start Early

With three months to go, it’s worth thinking about your Christmas savings now. Most of the time, it’s not possible to buy all the presents, decorations, food and party expenses from one paycheck, so saving at least a few months in advance can be extremely helpful and make December a little less stressful!

2. Set a Budget and Goal

It’s best to enter into the Christmas period with an idea of your budget so you don’t overspend without realising. Set a maximum spend budget for your shopping, food and party prep. This will act as your saving goal, helping you to know how much you need to save each month to achieve that amount.

If you want to spend £500 and don’t have any savings yet, you’ll need to save just under £170 each month from October into December. However, if you already have savings to spend on this, then you’ll need to save less over these few months.

3. Budget Each Month

When you know your goal, treat your savings as non-optional, budgeting for them like you would a bill. When you plan to set aside your savings and ensure you can still afford normal expenses, then it’s much easier to save.

4. Save When You’re Paid

If you know how much you want to save each month, then you should save it right at the beginning, the same day you’re paid. If you wait until the end of the month, it’s more tempting to dip into it for other things.

Set aside the amount you’ve budgeted to save. If you have spare at the end of the month, you can always add that in as extra.

5. Resist Temptation

When Christmas feels far away, it can be easy to take from your savings, figuring you’ll make it up later or that it’s not that important. But when December comes the panic sets in! Setting aside money each month takes discipline and it means resisting the temptation to dip into it. Remind yourself of why you’re saving up to make it a bit easier!

If you end up not using all your Christmas budget, you can always use it for something else at that point.

Saving through different schemes can help with this. Opening an ISA or joining a Christmas saving club, where the money is inaccessible until a few weeks before Christmas, means you don’t have access to the savings. If you haven’t done this already though, it’s probably too late to join, but you could consider it next January to put aside a bit each month ahead of time.

6. Consider Buying Early

If you know what gifts to get some of your family or friends, then you could consider starting to buy now to help spread the cost. This means you don’t have to pay for everyone’s presents in one go and it can make it more affordable.

7. Have A Pre-Christmas Clear Out

Why not sort through your cupboards and clear out all the old things you don’t use from previous Christmases? There are loads of online platforms where you could try selling them to raise some extra money ahead of Christmas and make room for new things. Try Gumtree or Facebook Marketplace.

Remember…

One of the hardest things about Christmas can be the pressure of having to have the best Christmas ever that’s perfect for your children. It can make it really stressful and you might feel you have to spend more money that you can afford. It’s important to remember that Christmas can be great without very expensive gifts if you prioritise having fun together as a family.

Try to set realistic expectations for your children in advance so they know what Christmas is going to be like, what kind of presents they’re going to get (you don’t have to tell them exactly, of course!) and you can all have a great day!