How Much Should You Spend On Christmas

Whilst Christmas is the most exciting time of the year for a lot of people, it can also be the most daunting and overwhelming time. The expectation to ‘splash out’ or go wild on gifts and decorations becomes more intense each year. However, planning ahead for Christmas can be done on the ultimate budget or even with a bit more to spare! Make sure to check out Moneyhub, where we can intuitively categorise your transactions so you know just how much you are spending on Christmas.

Saving throughout the year is a great idea. Doing so will give yourself a pot of money to dip into rather than juggling your regular paycheck to cover all your expenses and more. Create a budget for how much you are happy to spend on Christmas as a whole, and break it down to gifts, decorations, activities and food. The money you spend should be any left over after your bills and debt payments have been made.

Gifts

Ultimately, the number of gifts and the amount of money you spend is entirely up to you. Never prioritise gifts over your financial commitments. You can find out when your bills are due to be taken from your account by checking out the Regular Payments in Moneyhub.

“Just because you can afford it, doesn’t mean you need to have it”

Just because you can afford the long list of gifts your family may have written, it doesn’t mean you need to buy it all. Giving your child everything they want and more will set them up for unreal expectations for their future. 

If you do have any extra money, why not use it to pay off your credit card, put it towards a family holiday or pop it into your emergency savings? 

Something they want, something they need, something to wear, something to read. 

This poem has been doing the rounds for years and is something a lot of people choose to buy Christmas and birthday presents with. It helps gift buying stay manageable, lets the kids be creative with their ideas and also helps them understand the value of what they are asking for. 

Fold a piece of paper in half, and half again. Give each quarter of the page the title of Want, Need, Wear, Read and set your child/ren up to come up with some ideas under each category. Be honest with them. Let them know if you are only getting one gift from each category, or 2 or 3. This will help manage any expectations or disappointment if they think they are getting everything off the list.  

Why not create a ‘Gift’ budget on Moneyhub. You can track how much you have/are spending on gifts, which will undoubtedly help when it comes to tracking your budget!

Food

Don’t be scared of own brand items. Christmas dinner can very easily build up to cost a lot of money. Assess your budget and decide how much you wish to spend on food for Christmas day, and work backwards. Write a list of the absolute essentials you would like on your plate, then add a list of sides or extras that you’d like to have, but you don’t mind if you can’t have them. Using the budgeting feature on Moneyhub will allow you to track how much you are spending on your Christmas food shop.

Deciding to spend a bit more on quality meat and then buying supermarket own-brand items isn’t something to be ashamed of. Most ingredients in branded food compared to supermarket alternatives are the same. Also, more often than not, cooking from scratch makes your food bill much cheaper. Prepping food weeks in advance and freezing it is a great way to save money! 

Decorations

The majority of the time, people have decorations that they reuse every year. It might be that you’re starting afresh with your decorations or you want to add to your collection. Assess your budget and decide how much you wish to spend on your decorations. 

Charity shops are excellent places to check out if you are keen to work on a budget. You might also find some decorations that the kids can get involved with putting up or decorating. 

Alternatively, make sure to compare online retailers and their prices as you may find a cheaper alternative of the exact same item on a different website.

Activities

Again, this is entirely flexible depending on your budget. It may be that for the month of December, you decide to check out the free festive events going on in your area, or you may be happy to spend a bit more on Breakfast With Santa, going to the pantomime or going to Winter Wonderland. Always remember to check in with your budget before committing to spending money. Can you afford it? Do you want to spend that money?

Christmas doesn’t need to be expensive. Check out charity shops or second-hand stores for gifts, decorations, and even games to play in the evening! People donate items that have never been used, games and activities that have never been used, or simply items that have been very well looked after. 

Don’t be afraid to say no if you can’t afford it. Don’t be afraid to change things up. Christmas shouldn’t be stressful, and it certainly shouldn’t put you into debt.