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Christmas countdown: 40 days to go – how to curb your festive spending

Christmas countdown: 40 days to go – how to curb your festive spending
Matt Browning
Written By:
Posted:
15/11/2024
Updated:
15/11/2024

There are just 40 days to go until the final night you can listen to Wham!’s Last Christmas this year without being (unfairly) judged.

This means millions of diaries are now close to being fully stacked with staff parties and mid-week gatherings that go on a little later than you’d like on a school night.

It is perhaps no surprise, then, that December is the most popular month for overdraft usage, with Brits borrowing an average of £178 when using the facility.

At the end of the year, due to interest paid on the account, account holders are paying a further £278 for their overdraft usage.

As well as borrowing through overdrafts and credit cards, the emergence of buy now, pay later (BNPL) schemes has further pushed the Christmas spending can down the road for many shoppers.

Last year, some 15 million people used BNPL schemes like Klarna and Clearpay to afford their yuletide spends. However, a quarter of all BNPL users miss their repayments, risking late payment fees and a negative impact on their credit score.

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So, to avoid adding further debt or anxieties to what can be a stressful time of year, Laura Newman, head of NatWest Premier financial planning, has shared four tips on how to curb overspending during the festive months.

Following on from our Christmas guide on how to spend wisely on presents, food and drink, here are four tips to remember so you don’t go over your budget.

Festive budgeting tips

1. Put financial needs before the fear of missing out: It’s important to prioritise your financial needs over the fear of missing out (FOMO). With end-of-year holidays, Christmas gatherings, family visits, Christmas markets, work parties, Secret Santa, and spontaneous festive socialising, the social life pressure is on.

Make sure you budget for this increase in activity. You don’t have to say no to plans if you’ve budgeted accordingly, but keep it top of mind that this time of year can be expensive.

2. Make a clear financial plan: During the festive season in particular, we have noticed our affluent customers struggling more with the temptation to keep up with others. Go granular when it comes to financial planning. Have a pot for Christmas presents and another pot for socialising. You can even set a budget per social activity. Be strict, have defined budgets, and you won’t go off track.

3. Remember long-term goals: The pressure to spend more during the festive season can derail your financial progress. To avoid this, remind yourself of your long-term goals and the steps you’re taking to achieve them.

Having a clear vision of your future financial objectives can help reinforce the importance of sticking to your budget. Is that spontaneous meal out worth it if you’re going to go over your monthly savings amount that’s helping towards your dream holiday?

4. Seek advice: Speaking to your bank or a trusted financial adviser can help you understand your available assets to ensure you do not overspend.

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