BE SMART WITH SPENDING THIS CHRISTMAS

No-one can begrudge some indulgence this Christmas with last year mostly cancelled for big family gatherings. While it’s a smart move to get going on your gift-buying, it’s also important to keep a handle on your spending.

People intend to spend 21% more on Christmas than they did last year, according to a study by Saffron Building Society. A separate report by Saffron Building Society showed that many families, especially those with children under 18, are planning to spend beyond their means. Over a third of parents – that’s 4.5million people – are set to spend over £300 on each child.

With families facing rising inflation, it is now more important than ever to find a way of making Christmas affordable, rather than racking up debts.

Here’s our guide to smart spending this year.

Writing a list of who you need to buy for will help you create a budget. It’s often when you forget someone that you end up paying over the odds for a last-minute gift.

Just make sure you stick to your original list – and avoid panic-buying extras on Christmas Eve because you think your present isn’t generous enough.

If your list is out of control, discuss the idea of a secret Santa with family and friends instead.

Alternatively, try suggesting that you should buy only for children this year, or agreeing spending limits. Others might be relieved at the suggestion of a money-saving idea.

SNIFF OUT SALES

Even though Black Friday is behind us, retailers are likely to continue with discounts.

Without big sales events there are still ways of cutting the cost of shopping. Create your own discount by finding money-off codes. Type the brand name and “voucher code” into Google or try websites such as myvouchercodes.co.uk, vouchercodes.co.uk or hotdealsuk.com. Individual websites will often give you a discount for your first purchase. And sometimes if you leave items in an online basket overnight they will email you with a money-off code or free delivery.

CASHBACK

Using cashback websites for Christmas shopping can boost savings. Instead of visiting a retailer’s website to buy something, you go to a cashback app or website, search for the company that you want to buy from and click on its logo to be directed back to the shop. The app or website usually earns commission from what you have bought because you have clicked through from its site, and it then gives some of this commission back to you.

The percentage of your payment that you get back varies depending on the company you shop with. You can get rewards as gift cards for shops, or cash paid into your PayPal or bank accounts. The main cashback sites are Quidco and TopCashback.

SHOP AROUND

Price comparison websites are not just for energy bills and mobile phones. If you’re looking for something specific – the latest games console or this year’s must-have toy – use online comparison tools. You can set Google alerts – just enter the name of the product you want – so you don’t miss out on any new sale prices. Check out pricerunner.com.

REDEEM REWARDS

Don’t forget to redeem the rewards built up from the loyalty cards you have. It often pays to bide your time and wait until there are offers to make your rewards go further. Sign up to the email alerts and you will be kept informed of all the special offers you can get your hands on.

SPREAD COSTS

By all means use credit cards to spread the cost of Christmas shopping over a couple of pay days.

But ensure you only spend what you can afford to repay in full. If not, consider using a 0% interest credit card to avoid interest charges. Try and find one without a balance transfer fee.

Think carefully before using your overdraft to avoid interest charges, or the buy-now-pay-later option that is offered on an increasing number of websites at the checkout stage.

If you do decide to borrow money over the festive season in any form, double check all the terms and conditions before you agree to anything.

KEEP FOOD BILLS DOWN

One of the biggest expenses at Christmas is hosting friends and family. Plan menus carefully and buy what you need to avoid overspending – and waste. Don’t be afraid to ask your guests to bring a dish or drinks with them. Or perhaps charge them with bringing table decorations or Christmas crackers.

GIFTS FOR KIDS

Financial gifts are for life, not just for Christmas. So before going overboard on toys for children or grandchildren, perhaps choose just one gift they can open on the day and top up their Junior ISA or savings account. They will thank you one day!

DELAY PRESENT-GIVING

If you’re not meeting a friend or family member until after Christmas to exchange presents, you could use the Boxing Day or New Year sales to buy cut-price gifts.

DARE TO RE-GIFT

If you have received a present this year that you know you won’t use, but know someone who will like it, then re-gift it. Just keep track of who gave you what, so you don’t end up handing a gift back to the same person!