StepChange tips to save money at Christmas

StepChange, a debt advice charity, has shared tips for saving money at Christmas as households prepare for festive spending.

The answer to how soon people should think about Christmas finances is that it is never too soon, according to the advice. Saving early can make the cost more manageable.

The squeeze is harder for some than others, and charity Barnardo's warned that some parents will skip meals so their children get a Christmas dinner with the trimmings.

StepChange said the best way to avoid a difficult January is to make a realistic plan before Christmas spending begins. It offered tips to everyone, to avoid Christmas spending leading to a financially painful new year.

The charity said small decisions now can make a big difference later. Its tips include budgeting for Christmas in full, so the budget should include food and drink, travel, parties, presents, postage, decorations and other festive extras.

It also said to spread the cost and not rely only on the December paypacket. A shopping list should be made before Black Friday on 27 November, the charity said, adding that a discount is only useful if the item was going to be bought anyway.

Other tips included booking train journeys now, as advance tickets if available are cheaper, and setting spending limits for Christmas socialising, with quiet conversations about present spending.

Before the big food shop, people should stocktake by checking cupboards, fridge and freezer, plan meals around food already owned, make a shopping list and compare prices.

The charity also suggested thinking twice about whether someone can afford a purchase, whether credit repayments would be affordable, and whether they really need the item.

Vikki Brownridge, chief executive of StepChange, said Christmas is a time when people want to enjoy themselves and make things special, but it can put pressure on household budgets. She said it is key to take steps to get ahead of any January financial blues.

If concerns about Christmas leave someone in debt, the charity said it is best to seek advice well before things become unmanageable.

MoneyHelper has a guide to finding free debt advice, tools to check if someone is receiving all benefits and grants they are entitled to, and tips on drawing up a budget.

The article also said it is important to watch out for scams at this time of year, as fraudsters may take any opportunity to catch people out, especially when they are under financial pressure.

Source: BBC Business.