Every week Clare Francis, financial journalist and editor of comparison site moneysupermarket.com will offer tips and advice on all things money-related to help iVillagers make the most of their hard-earned cash. From energy bills to car insurance; credit cards to children’s savings accounts; mortgages to discount vouchers Clare will show you how to make sure you’re getting the best deal
Top tips for an affordable Christmas
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Christmas is just around the corner but with money tight, this year is set to be the year of ‘Thriftmas’.
A survey out this week from West Bromwich Building Society found that 60% of people will be cutting back this year. And in a separate poll that we carried out on MoneySupermarket only 38% of the 5,800 respondents said they could cover the cost of Christmas, with 21% saying they’ll have to dip into savings and 15% will either have to use credit or store cards or dip into their overdraft.
We’re set to spend an average of £586 this Christmas according to Marks & Spencer Money but if the thought of this fills you with dread, don’t panic. There are ways to cut the cost without sacrificing any of the fun:
- Why is it that when it comes to Christmas we feel compelled to not only buy more food and drink than usual, but also to add items to the supermarket trolley we wouldn’t buy at any other time of year? Tins of fancy biscuits, nuts, Quality Street (or perhaps Cadbury’s Heroes in this day and age), Baileys...the list goes on. Our Christmas supermarket bill will come to an average of £187 according to M&S Money’s research. Ouch.
But you can lessen the pain by spreading the pain. Start picking some of the non-perishable items up now. It doesn’t matter which supermarket you shop at, they’ve all got some great offers on at the moment whether it’s half price crackers, wine and beer deals, cut price shortbread or multi-buy deals on crisps and other snacks.
What’s more, Sainsbury’s, Tesco and Morrisons are all offering fuel vouchers to customers who spend over a certain amount so this is definitely the week to stock up.
- Use cash alternatives. If you’ve been accumulating loyalty points all year, now could be the time to cash them in. Boots can be a great place to shop for presents – not only can you currently take advantage of its ‘three for two’ offers on a range of gifts but you might even get them for free if you’ve saved up enough Advantage points.
If you’re a Sainsbury’s shopper you might have accumulated enough Nectar points to cover your entire Christmas supermarket shop, although don’t forget that there are loads of things you can exchange your points for, so check out the Nectar website first.
Tesco Clubcard collectors can get twice the value for their vouchers at the moment. Tesco’s voucher exchange lets you turn £5 into £10 if you then shop in the clothing, toy, skincare, cosmetics and fragrance departments, and £10 into £20 if you spend your vouchers on wine, champagne or small appliances. You need to hurry and dig those vouchers out though as the offer ends on 1 December.
- Take advantage of discount vouchers. There are literally thousands of discount vouchers available so before you spend any money anywhere, make sure you can’t save money by printing out a voucher or entering a discount code online. Check out Moneysupermarket’s voucher channel to find out what’s available.
- Agree a family budget. If you’re worried about the cost of Christmas speak to the rest of your family and agree a cap on the amount you’ll spend on presents. Remember, it’s the thought that counts and you never know your relatives might also be relieved to have a cheaper Christmas.
Another option is to do a Secret Santa so you buy for one person only – this not only helps cut the cost of Christmas but it also reduces the stress as well because you don’t have to worry about what to buy people. We did Secret Santa in my family last year and it worked really well, the only problem was I drew the short straw and had to buy for my Dad – he’s definitely the hardest person to buy for!
- Get personal. Have you thought about making your Christmas presents? Yes, it takes a bit of time but it creating a gift can be hugely satisfying and often gratefully received by the recipient because it’s really been thought about. Perhaps you’re a dab hand in the kitchen – chutneys, homemade jams and sweets are always popular. If you’re an artist, then who knows what one of your originals could be worth in years to come. And even if it doesn’t become a collectable, it can still bring pleasure to the recipient.
The other great thing about making your own presents is that you can get the kids involved. They’ll love it (well most will anyway).
And don’t forget that Ebay’s brilliant for this sort of thing. There are 98 jam jars in my garage at the moment – a bargain off Ebay. The plan is that they’ll be filled with chutney, onion marmalade or mincemeat within a few weeks and then be sold for charity at a Christmas Fayre we’re having at work, although there’ll be a few jars held back for presents.
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