The holiday season is a time for celebration, but it can also be a time of financial stress for many people

And yes, we mean spending at Christmas – especially with a big family surrounding you. With the temptation of holiday sales, filling your home with new festive decorations and gathering gifts for friends, kids, and grandkids, it’s easy to overspend at this time of year.

Here are some practical tips to help you manage your finances and enjoy the holidays without breaking the bank.

Budgeting and planning

• Set a budget: Before the festive season begins, set a realistic budget for your spending. Consider factors like gifts, travel, food and entertainment.
• Make a list of priorities: Create a list of people you want to buy gifts for and prioritise them based on your budget.
• Track your spending: Use a budgeting app or spreadsheet to track your expenses throughout the holiday season. This will help you stay on track and avoid overspending.

Read more: your guide to managing money in retirement

Managing holiday expenses

• Pay with cash or card: Paying with cash or a card can help you stick to your budget and avoid overspending. If you are using a credit card to make bigger purchases, make sure to pay off your balance to avoid additional interest charges.
• Avoid impulse purchases: Take a moment to think before making a purchase, and ask yourself if you really need the item.
• Cook at home: Instead of eating out, cook at home to save money on food expenses around the festive period.

Smart shopping

• Shop early: Start your holiday shopping early to avoid last-minute rushes and impulse purchases.
• Shop online: Online shopping can save you time and money, as you can easily compare prices and find deals.
• Use coupon codes and cashback apps: Take advantage of online coupons and cashback offers to save money on your purchases.
• DIY gifts: Consider making homemade gifts. They can be more personal and often less expensive than store-bought gifts.
• Shop second-hand: Check out charity shops and online marketplaces for unique and affordable gifts.

Gift-giving strategies

• Secret Santa: Organise a Secret Santa exchange with friends and family to limit the number of gifts you need to buy.
• Gift experiences: Instead of material gifts, consider gifting experiences like tickets to a show, a cooking class or a spa day.
• Homemade gifts: Homemade gifts are a thoughtful and affordable way to show your love and appreciation.
• Gift cards: Gift cards are a practical and convenient gift option.
• Charity donations: Consider donating to charity instead of traditional gifts.