The festive period can be a magical time of the year, but it is not without its challenges – especially when it comes to financial stress and wellbeing.
We know from exclusive Champion Health data that 38% of employees already cite financial pressure as the leading cause of stress outside of work.
But our finances take a big hit during the festive season, leaving many of us anxious, stressed and worried about the impact of spending on our financial health.
So, we have teamed up with the financial wellbeing experts over at FinWELL to share 5 simple tips that will help you enjoy this time without any additional stresses.
1. Manage expectations
Determine how much you can comfortably put towards your festive budget without getting into debt or putting additional pressure on yourself, and work backwards from there.
- Be open with friends and family so you’re on the same page
- Agree on a maximum spend per person
- Consider only buying presents for the children in your family
- Suggest a Secret Santa with one gift per person and a price limit
- Don’t buy gifts for everyone – a simple homemade card is enough
And then there is socialising, which can be considerably more costly than usual during the festive period.
Societal pressure and impromptu nights out all add up, so again, be open with friends and give yourself a social budget. Once the money is gone, it’s gone, and that’s okay!
2. Set a realistic budget and plan ahead
Your budget can cover gifts and cards, food, travel, and decorations, and you can track every purchase to avoid overspending.
Food can be more expensive, and supermarkets will be driving people to spend more money.
- Plan your food and remember Christmas dinner is just another roast dinner – have you seen the price of turkey vs. chicken/beef?
- You can also make a gift and shopping list early, set limits for each item and enjoy ‘guilt-free spending’
- Look for deals, discounts, or homemade gift options to reduce costs wherever you can
- Follow price trackers like Amazon’s camelcamelcamel.com to keep up to date with deals.
- Consider using cash or a prepaid card for holiday purchases to stay within your limits
3. Avoid emotional spending or last-minute shopping
Last-minute purchases often lead to impulsive overspending and other spending habits that can be negative.
By planning in advance, you can spend more time comparing prices and finding the best deals.
This also allows you to spread expenses across a few months instead of all at once and avoid the last-minute panic, which only exacerbates financial stress.
4. Limit credit card use
Credit card debt can build up quickly and lead to additional stress once the festivities are over. If you must use a credit card, try to find one with a lower interest rate or one that offers some financial return or rewards.
- Avoid Buy-Now, Pay-Later (BNPL) deals where possible – those payments will be due in the New Year when funds are low, and payday is a long way off.
- Set a spending cap on your card and prioritise paying it off as soon as possible. Set minimum payments by direct debit
- Plan for Christmas over 11 months by setting a small amount aside each month – then it won’t hurt so much in December!
5. Experiences over gifts
Instead of spending heavily on presents, consider planning meaningful experiences like family games night, movies or home cooking. This can help save money and is great for your overall wellbeing.
You can also encourage family and friends to join you in an experience-based approach to avoid financial stress, all while creating memorable traditions that can be enjoyed every year.
We hope these simple tips can help you celebrate this special time of year with minimal financial pressure and maximum enjoyment!
~ Justine Piercy, Head of Training at FinWELL Training
For more award-winning financial education and wellbeing training for employers of all sizes and sectors visit www.finwell.uk.
