How to save money - Christmas 2021

Christmas is generally a very expensive time... but it does not have to be! Here's how to save on your festive spending care of the folks at Good Housekeep UK and Budget Insurance and adjusted for local readers.

After spending the last festive season in various forms of lockdown, the instinct may be to treat the family even more than usual this year. But what you don't want is to start 2022 in the red. Planning, budgeting and tracking your spend is the best way to have a brilliant time without giving yourself a financial hangover.


The average household spends thousands more in December than in a typical month. Of course, presents make up a lot of the expense, but spending on food and alcohol also increases by between 20 and 30%.

If you’re on a tight budget but more determined than ever to make the most of Christmas, here are some tips to help you avoid starting the new year in the red.

1. Plan before you spend!
There is an app for everything, and this applies to planning and tracking your Christmas spending too. Christmas Planner and ResPack 15-Christmas Budget are hassle-free ways of making sure you always have your to-do list with you. An app can help you work out how much you want to spend, and how much you'll need to save to afford the Christmas you want. They also have a Christmas planner tool. Don't just whack it all on the credit card — make a list of everyone you are buying for and how much you can afford to spend on each after bills and essentials are covered.

2. Pinpoint your key holiday expenses.
hen putting together your Christmas budget template, start by listing all expenses you expect to incur, from gifts and wrapping paper to travel, entertaining and food, to get the bigger picture. Problems arise when people only plan for gifts and forget all the other increased expenses, such as groceries and entertainment, for example.

3. Stick to your budget
Once you've set a budget, keep track of your spending and you're less likely to overspend. Whether it’s by using a notebook, an app on your phone or an excel spreadsheet on your laptop, choose a system that works for you. Create an email folder for receipts and get them emailed to you. Better still, create a separate email account for spending so you don't get overwhelmed by marketing emails.

4. Do ‘family gifts’ or a Secret Santa
If you've got a lot of people to buy for, such as extended family and friend groups, this is a great way to keep the costs down. A large box of chocs, tin of biscuits or sweets or a board game can be a great family gift.

5. Watch your bank account and credit card and set a cap on spending
Be clear about the amount you have available for your Christmas budget. Keep in mind the possible expenses you’ll have at the beginning of the new year – such as school uniforms and stationery – then settle on a figure that you’re comfortable with. It might be a smaller amount than you would like, but you can get creative with DIY gifting ideas. If your bank offers you alerts for when your current account dips below a set amount, opt in.

6. Make a Christmas gift list.
How many people would you like to buy gifts for and how much money do you want to assign to each person? Without a plan in place, it’s a recipe for disaster. Go digital with an app such as the Christmas Gift List or Xmas Gifts Lists and easily split your gift budget over the number of people you intend to buy for.

7. Divide money according to your budget planner.
You have your final amount and you have your holiday expenses list, now before you hit the shops split the money you’ve allotted to your Christmas budget across each of the sections. Assign an amount to gifts, festive food and drink, wrapping paper and outings. This will help you see where you need to cut back and possibly cut out altogether.

8. Keep track of your spending.
Keep your Christmas budget planner on hand and cross off each item once it’s been bought. Weigh up the actual amount against the estimated amount and adjust your budget accordingly. Crossing off those items is a satisfying feeling and constantly referring back to your budget will help you stay on track.

9. Creative gift giving.
Google DIY gift ideas and you’ll be overwhelmed by all the creative ways you can spoil your loved ones without spending a fortune. From “swap don’t shop” ideas to upcycling and regifting (google “regifting etiquette” to ensure you cover all your bases here), you just need a bit of time and some creative energy to come up with really thoughtful presents.

10. Avoid 'buy now, pay later'
Tempting as they are, try to avoid these offers from retailers unless you have a plan in place for repaying the loan within the interest free period. Otherwise, after the 0% phase ends, you’ll be charged an aggressive interest rate and that new lounge suite, outfit or TV could end up costing you far more. And it will have a negative impact on your credit score.

11. Before borrowing, look at where you can cut costs
If making ends meet over Christmas looks like it will still be a struggle, be honest with close friends and family; they will be happy to take a rain check on presents or plan something special together in the Spring. You may not have managed to save up for Christmas this year as much as normal, but who has? If you need a credit card, make sure it's one that offers zero percent interest on purchases and that you pay off the balance as soon as possible.

12. Don't lose your head over sales!
In the deluge of deals around Black Friday (27 November) and Cyber Monday (30 November) and all the others special offers in the run-up to Christmas, remember a bargain's only a bargain if you were planning on buying it in the first place. Otherwise, it's just an impulse buy.

13. Plan every meal
Don’t be duped into buying more food than you need. If a ‘buy one, get one half price’ offer is genuinely good value for you, go for it, but if you don’t actually need two of the item, avoid! At Christmas, everyone tends to over-cater on the food front. Swapping branded products for own-brand can also make a significant difference to your weekly food bill, too.

14. Deploy trolley tactics
Load up your online trolley but don’t check out immediately. If stores spot items sitting in your basket, they’ll ask if you forgot to check out and may send you a discount code to persuade you to buy the goods. You'll need to have entered your email address, so that they can get in touch.

15. Pay off debt quickly
Once the tree starts to wilt and all the leftover gammon has been eaten, it’s time to check in on your budget and take note of where you’ve overspent. If you did go into debt, the best thing you can do is pay it off as soon as possible to avoid interest from accumulating.

Links:

• www.goodhousekeeping.com/uk/consumer-advice/money/a30196923/how-to-save-money-christmas/
• www.budgetinsurance.co.za/blog/money-blog/the-ultimate-christmas-budget-planner/