Category — Christmas Spending

It is undoubtedly one of the most expensive times of year for most people. No one wants to scrimp on the all-important Christmas season, especially if there are some young believers of Santa Claus around or older, more brand conscious children keen for the latest gadgets.

With ongoing household bills such as mortgages still having to be paid, the cost of Christmas can be cut with a little bit of research and clever shopping for presents and Christmas extras.

As you would with your household finances, including mortgages, set a budget and stick to it. Work out how much you can afford and if you can, avoid going into debt to pay for Christmas.

The first rule when searching for gifts has to be, shop around. In the same way that you would shop around for mortgages or other financial products never just buy the first one you see but compare the price at other retailers to find the cheapest.

You can also use auction sites like Ebay. Small children won’t notice if something is second hand and the box is a bit bashed or doesn’t come wrapped in shiny cellophane. If it doesn’t bother them, don’t let it bother you.

The period in the run up to Christmas is also a good time to sell any old and unwanted toys and games to raise a bit of festive cash. It also helps clear out the house before a new round of gifts arrive.

If you’re part of a large extended family, buying gifts for everyone can really add up. Talk to family members about what you would like to give each other this year.

Perhaps you could only give presents to the children, or organize a secret Santa for the adults with a limit on the amount of money. That way everyone gets a gift but only has to buy one present.

It may not be very romantic but talk to your partner about gifts and set a limit on what you spend on each other.

With mortgages still to be paid, every little helps and reducing spending on presents to each other is a good way to save.

Buying and sending Christmas cards is another expense you can cut. Send an e-card by email to friends to reduce costs. However, older friends and relatives will probably still appreciate a traditional card through the post.

When it comes to Christmas entertaining make sure you find the best deals on festive fizz. Look out for cut price Champagne, or buy Cava or Prosecco instead. You’ll still get the bubbles but pay out a lot less.

Reduce the price of Christmas lunch by gathering family members or friends together. Get everyone to contribute an element of the meal so the financial burden doesn’t fall on just one family. Not only will it be fun and sociable, it’s a good way to share the cost.

Remember everyone is in the same boat with mortgages to pay, so most people will welcome different ways to save money.

Barely is Christmas day over then the Boxing Day sales start. If you can bear it, shop now for next year. Look out for cards and decorations at vastly reduced prices and stock up on toys and clothes for the coming year and even next Christmas.

With the squeeze on the cost of living likely to continue and mortgages still taking up a chunk of our income another good way to take the sting out of next year is to start saving small amounts every month from now.

Article provided by MoneySupermarket, the UK’s number one comparison website for mortgages, credit cards, loans and a host of other financial products.