Planning for the cost of Christmas

The average household spends over £500 extra in the month of December. Are you prepared for this increase in spending?

Christmas is coming… are you ready?! 

We know, we know, Christmas still feels ages away. But we’re starting to plan for it already, because according to the Bank of England, the average household spends over £500 extra in the month of December.¹ Are you prepared for this increase in spending?

Here's some simple steps you can take to save money this Christmas and plan your finances so Santa’s arrival doesn’t give your bank balance a shock!

Plan your Christmas spendingworkplace-money2

Get your budget ready for Christmas by planning your Christmas spending now! By spreading the cost over even one or two extra paydays, you can help to ensure you aren’t left in the lurch come December. Plus, we suggest writing out a list of everything you’ll need to buy – as well as presents, don’t forget to include any other extras such as a Christmas tree, fairy lights, food, and more.

Driving home for Christmas?

Whether you’re driving home for Christmas, or travelling by plane or train, plan your travel costs now so you aren’t caught out come December.

If possible, book your flights or train travel now, as costs might increase closer to the time. If you’re driving, make sure you’ve made room in your Xmas budget for petrol costs! Plus, factor in any other additional unexpected travel costs, such as taxis home from Christmas parties.

workplace-coinAvoid sticking Christmas on a credit card

According to research by GoCompare, one in ten people will put the whole cost of Christmas on their credit card.² Although there are of course advantages to buying Christmas presents on a credit card, including legal protection, you should avoid using a credit card to pay for things you can’t afford. You’ll end up facing a hefty bill in January, that you may not be able to pay.

Two million turkeys, five million Christmas puddings and over 74 million mince pies

Two million turkeys, five million Christmas puddings and over 74 million mince pies make up some of the estimated 270,000 tonnes of food wasted in the UK each year.³ Avoid overspending at Christmas and ending up with uneaten, wasted food by planning how much you’ll really need. Plus, make space in the freezer now and make Xmas leftovers last longer by freezing whatever you can.

Christmas in January?

workplace-calendar

Yes, it may seem super keen... but by starting to plan for Christmas 2020 as soon as January, you can help to make sure you feel prepared for the festive season.

If you’ll be reviewing your budget in the New Year, don’t forget to factor in Christmas savings. By putting away money every month next year you can feel prepared for Christmas spending come December, and focus on enjoying the festivities!

You can find more savings suggestions on our Instagram account, @psaspire, where we cover:

💰 money saving tips
💪 money making tips
♻️ sustainable savings
💙 financial wellness

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¹ Source: Bank of England Knowledge Bank: How much do we spend at Christmas?

² Source: GoCompare Money Survey, November 2018, 2006 respondents

³ Source: Wrap Estimates of Food Surplus and Waste Arisings in the UK, 2018, via Big Issue, December 2018

Posted by Helen Battrick

Topics: London, financial wellbeing

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