A financial planner shares ways to avoid overspending at Christmas

The festive season may bring markets, parties and gifts, but the rising price of Christmas can quickly become stressful.

To help lighten the load, Zoe Brett, a financial planner at EQ Investors, shared her advice on keeping costs under control while still enjoying the celebrations.

Here are her main suggestions for spending less at Christmas without losing the fun.

Plan your spending early

“Working out all of your Christmas costs in advance — including travel, food, gifts and social plans — will help you set a realistic target,” Brett said.

“If you can see everything ahead of time, it becomes easier to tell whether the total is getting too high and where you may need to trim back.”

Leaving everything to the last minute can make costs much harder to control.

“The closer it gets to Christmas, the more prices tend to rise because items become harder to find, which means sellers can charge more,” Brett said.

Set limits for gifts

“Write a list of everyone you want to buy presents for and decide in advance how much you can spend on each person,” Brett advised.

“It is easy to be tempted by an extra gift when you spot something nice in a shop, but you need to stay disciplined and avoid falling into the ‘just one more’ trap.”

Brett also suggested being open with loved ones about what you can afford.

“Be honest with friends and family about what you plan to spend around Christmas,” she said.

“There is absolutely no shame in telling someone you want to keep it to a certain amount. They would not want you feeling stressed over a present.”

Use seasonal discounts wisely

“In the run-up to Christmas, make use of sales such as Black Friday and Cyber Monday to reduce the cost of gifts,” Brett said.

“Just make sure you still stick to your budget so you do not end up overspending in the sales.”

Choose reusable decorations

Try not to buy a completely new tree and decorations every year.

“An artificial Christmas tree can be brought out year after year, and there is no need to replace all of your decorations each Christmas,” Brett said.

“Stick to classic, good-quality decorations that will not fall apart after one use and can be brought back out each year.

“Store them somewhere dry and safe, and they should last for many years.”

Ask guests to contribute

“If you are hosting and family members are coming to you, why not ask everyone to bring something?” Brett suggested.

“You might handle the main meal, while someone else brings dessert and another person brings the wine.”

Freeze food bought in advance

“If you spot food on offer in the months before Christmas and know you will need it for the holiday, buy it and put it in the freezer,” Brett said.

Save on everyday food items

“Spend a bit more carefully on the treats,” Brett advised.

“Some items are worth paying extra for, but with others there is very little difference between the budget and premium versions, such as vegetables and sauces.”

Choose low-cost outings

“Be upfront with friends and family about what you can afford, and suggest some home-based gatherings instead of always going out,” Brett said.

“If you want to eat out, check the menu first to see whether it fits your budget, or look for a cheaper option that everyone would still enjoy.”

Buy travel tickets early

“If you know you will be travelling over the Christmas period, booking train tickets early can help you save money,” Brett said.

Look for gifts in charity shops

“You can find some really good-quality items in charity shops,” Brett said.

“I strongly support charity shop shopping because it is better for the environment, the money supports a good cause, and you can pick up something affordable. It is a great combination.”