Don't Let Festive Fun Blow Your Budget

Holiday season's upon us, and with it the increased spending on gifts, travel, and entertainment. For many, this presents the daunting reality of increased financial stress, the pressure of a squeezed budget or the icky reality of credit card debt. But before you feel obligated to buy presents for everyone and wildly start swiping your card, let’s check out some strategies that might help ease the spending burden.

First things first, set a budget.

If you’ve already started the spending spree and it feels too late for this holiday season, don’t worry – create one anyway to be your guide for next year. As part of your budget, you can allocate some savings for next year’s holiday season, as well!

There are lots of resources online about different holiday budget strategies, but the first thing to do is establish how much you’re willing to spend overall. For this, it can be helpful to refer to last year’s gifts.

Break it down, to prevent overspend.

You’ll also want to break out costs into spending categories, like: gifts, travel, food and entertainment, and any other categories you like (might be holiday decor/attire, or charity donations). For gift-giving, one good rule is to spend 1% of your household income on gifts. So, if you’re making £50,000 a year, your budget for gift-giving would be £500. Once you find a number that feels right, share it with your partner/family so you all agree and can hold each other accountable.

Whether it’s a gift wish list or a holiday grocery list, having everything in one place keeps you organised and on budget. Share your list with your partner or family to stay aligned.

Without a plan, overspending becomes way too easy—it’s like grocery shopping when you’re hungry (we’ve all been there, right?). Stick to your lists and avoid buying things you don’t need or want. Your wallet will thank you!

Next, shop the sales!

Remember these big sales that are coming up as we approach the holidays:

o Black Friday (Nov 29, 2024): The post-Thanksgiving shopping frenzy is here, with deals all month long—online and in-store! 🛍️

o Cyber Monday (Dec 1-2, 2024): Online steals on everything from clothes to travel kick off Sunday and often extend into Cyber Week. 💻✨

o Green Monday (Dec 9, 2024): The second Monday of December brings big deals and the rush to grab last-minute holiday gifts! 🎁

o Super Saturday (Dec 21, 2024): Procrastinators rejoice—this is your day for last-minute shopping and great discounts. ⏳🛒

o New Year’s Sales (Dec 26 - Jan 1): Score after-Christmas bargains and start the new year with big savings. 🎉💸

Mark your calendar and shop smart!

Gifting Money Hacks

Whether you celebrate Hanukkah, Christmas, Diwali, Kwanzaa, Boxing Day, or all of the above, you’ are probably wracking your brain for gift ideas and feeling dread about your credit card statement at the end of it all. Instead of spreading yourself thin, consider gift-exchanges:

Secret Santa. You'll know this one. The gist is – everyone draws a name and gets secretly assigned to be one person’s Santa for the gift exchange. Your group can set a budget for the gifts, and each person is buying a tailored gift for one person. On gift exchange day, the Secret Santa writes the recipient’s name on the gift (but keeps their own identity secret!). Each person opens their gift and guesses who their Secret Santa is. It’s a fun way for all to get involved, while keeping things budget friendly.
Alternatively, you can do a Not-So-Secret Santa gift exchange. Here, your group still sets a budget and picks names out of a hat, but the gift givers and receivers aren't secret. Instead, the gift receiver can work with the gift buyer to help them understand what the receiver needs or wants most this holiday season.
White elephant. This game can be whatever you make it. Set a budget (e.g. £25) and have everyone buy a single, wrapped gift—humorous, useful, thoughtful, or a mix! On the day, place the gifts in a pile and draw numbers to pick the order. Players can choose a gift from the pile or "steal" an already-unwrapped gift (each gift can be stolen twice). Keep going until all gifts are claimed. It's a fun, budget-friendly way to exchange presents and share laughs!

The entertainment drain

In addition to gifts, the holidays are packed with parties, lunches, black-tie events, and festive meals—but all that celebrating can quickly drain your wallet. Here’s the deal: be true to yourself and your budget. If you can’t afford to attend every invite, say no to the ones that aren’t a priority. Your future self will thank you!

If you’re hosting a large dinner party for family and/or friends, the thought of buying and making all the drinks/food yourself could be overwhelming. One fun way to combat that feeling is to get everyone to bring a dish and chip in on the booze Pro tip: Create a shared spreadsheet so everyone knows what to bring—it keeps things organized and so much easier. Create a plan ahead of time to ease the burden and make it more fun and less stress for everyone involved – including you!

So the #1 rule to avoid financial stress this season?

Set a budget and stick to it! Plan ahead for all your expenses (gifts, food, outings, and more), so you can enjoy the festivities without the financial hangover.

If you want more tips on handling your budget this Christmas, check out Ask Aila Anything and if you’re keen to get a handle on your budget and finances try Aila now.

Thank you to Caroline Teare for contributing this blog. 🫶💫

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