Stay on the savings good list and avoid your naughty festive spends

Change ways and end the Christmas debt hangover

AFTER last year’s no-show, everyone wants this Christmas to be the best ever. But you shouldn’t have to go into debt to fund it.

There’s added stress to the seasonal splurge, coming at a time when food and energy bills are rocketing. So even more reason to plan for it carefully so you don’t pay for it next year.

Nobody wants to play Scrooge but if things are really tight, your friends and family will understand – so talk it over with them.

Pete Mugleston, money expert at onlinemoneyadvisor.co.uk, says don’t put too much pressure on yourself to plan the perfect Christmas.

“Just make sure you don’t leave yourself with a financial hangover in the new year,” he added.

Before you start spending, work out how much you can afford without going into debt, then stick to your budget, he said.

You can save on presents by organising a Secret Santa with close friends or family.

“While many of us dread Secret Santa in the workplace, as we often don’t know the person we are buying for, it’s a great way of saving money with people you do know,” Pete said. And get creative with decorations. “Re-use decorations from previous years, and if you have kids, set them to work with glue and glitter,” he suggested.

You can save cash by sending digital Christmas cards this year, said Al Ward, head of customer savings at fund manager Abrdn.

Download free e-Christmas cards from the internet or make your own.

Or fund your festive spends by having a winter spring clean.

“Root around in your cupboards for anything that you can sell on online sites such as eBay or Facebook Marketplace,” Al said

If Santa brings you unwanted pressies this year, sell them online or stockpile to give next year.

Travelling to see friends and family can be a major expense, especially if you buy tickets at the last minute as prices creep up closer to Christmas.

“Trainline’s split-ticketing app feature can help you find cheaper tickets for longer journeys.

“And you should check your eligibility for a railcard, which can knock a third off most rail fares,” he added.

The gift of a cheaper Christmas

Last year, 96 per cent of us gave at least one Christmas gift. But this year only 89 per cent plan to do so, according to research from shopping comparison site finder.com.

That’s still a huge majority but it does suggest that some people are cutting back, said Finder’s shopping expert Reemul Balla.

Agree a price limit on gifts with family and friends.

“It’s an easy idea and may come as a relief to others when you suggest it.”

Alternatively, give an experience as a present, Reemul suggested.

“Think of something that would brighten someone’s day that doesn’t involve reaching into your wallet. It could be as simple as breakfast in bed, planning a walk or making something.”

To broaden your TV horizons over Christmas, make use of one-month free trials from streaming services such as Amazon Prime and Hayu. “Put the date in your diary to review your decision before the trial ends, to avoid falling into a default subscription you may not want,” Reemul said.

Avoid relying on easy credit “buy now, pay later schemes”, warned Anthony Morrow, founder of low-cost financial advice platform Open Money. “It will be tempting as more stores accept schemes such as Klarna and ClearPay, but think about how you will pay it back.”

It’s a simple one but be prepared to say no, Anthony added

“Spending can quickly add up so consider whether you can afford to hit every party or event you’re invited to.

“And apply the same principle to buying gifts. If you are struggling to fund friends or extended family members that you rarely see, think whether it’s really necessary.”

Start festive food shopping now

With the UK lacking an estimated 100,000 HGV drivers, food shortages are an ongoing fear this Christmas.

Although there is no need to panic buy, it makes sense to start your big Christmas shop a bit earlier, said Andy Needham, managing director at Approved Food.

“Planning where you are going to get everything, bit by bit, will lead to a much less stressful festival season.”

He suggests stocking up your cupboards with smaller items that don’t need refrigerating, such as cranberry sauce, mince pies or Christmas puddings.

Make space in the freezer, Andy added.

“You can typically freeze meat such as turkey for up to four months, so why not buy now rather than last minute?”

You may need to exercise restraint with the festive snacks, as you could end up having to buy them twice.

Cookbook author Niki Webster said meat is pricey so you could save money by switching the focus to seasonal root vegetables.

“This is one of the easiest ways to reduce costs at Christmas,” she said. “Enhance them with s you’ll already have in

“Opt for slow cook their flavour without luxury ingredients.”

Adam Bullock, d Cashback, says mor people bulk buy for C can be a false econom

“On average, a fif purchases go to wast excess and buy what y instead, around fo

Scott co-found saving suggested such as Co-op, As

“Comp prices o trolley.c websites like Price Sp to monitor price cha

Scott also tips Mon Discount Outlet stor Kurt Geiger and Sup save up to 80 per cen

And use cashback Cashback, netvouche Quidco, or check Gro

When buying onlin most sites typically h for when Christmas

simple ingredients n your pantry. king to condense t spending out on director of Top re than a third of Christmas but this my. fth of multi-buy e. Ditch buying in you actually need while shopping or the best offers.” t Mowbray, der of moneyapp Snoop, d saving schemes those run by sda and Iceland. pare supermarket n sites such as co.uk and use py, Keepa or Idealo anges.” ey Saving Expert’s re for names like perDry. “You can nt,” he said. sites such as Top ercodes.co.uk and oupon for others. ne, remember that have a cut-off date presents can be ordered to ensure they arrive before December 25.

Most places extend returns into January but always check.

Go green

Second hand doesn’t have to mean second rate. Free online marketplaces or “swapping sites” such as Ferris, Freegle or Gumtree can save people hundreds of pounds on gifts.

Philip Galloway, founder of the zerowaste Ferris App, said: “We’ve recently featured top clothing brands, furniture and an air hockey table.”

He said donors can use these sites to declutter, buyers save money and “it’s good for the planet, too”.

Now is the time to sell your old tech to raise spending money, said John Stirzaker, penny-pinching pro at netvouchercodes.co.uk.

“Since technology tends to depreciate in value quickly due to constant advancements, act sooner rather than later,” he added.

Smartphones, laptops, TVs and consoles can bring in cash.

“Established brand name phones and cameras appear to hold their value better than other devices.”

John said retailers are stocking a digital edition of the PlayStation 5 at £359.99, but trading in your old

PlayStation 4 Slim edition can give you a £100 discount off that price.

“The Apple iPhone X and Apple iPad Air 2nd Gen can be exchanged for £165 and £133 respectively,” John added.

Show your children the true meaning

Children value the time you spend with them over the number of presents they receive, said Louise Hill, co-founder of savings app Go Henry, which teaches children money skills in a “gamified” way.

“Use family time in December to make homemade decorations, cards and gifts, saving money and spending valuable time together.”

If you need to cut back on gifts, ask your kids to prioritise one or two items they really want rather than a huge list of presents they will soon get bored with.

“You could explain that they won’t get everything they ask for this Christmas, but you will help them budget their pocket money so they can afford it in the January sales.” Children are earning up to £29 per month by carrying out household chores, Go Henry research shows. “Helping out with the cleaning or food prep is a great way for them to earn extra pocket money.” Parents looking to snap up some of 2021’s top toys should keep an eye on eBay for a bargain. But also crosscheck listing prices to make sure you’re not paying over the odds, a 118 118 Money study suggests. It found that several items on eBay are on sale at well above the recommended retail price, despite not being sold out yet. The Playmobil Police Bobby, for example, is listed on eBay for £15 yet its RRP is only £5, while the Frozen 2 Elsa costume is on eBay at £17.05, well above its RRP of £7.