Tips to help families avoid overspending at Christmas

Sticking to a budget can be tricky at the best of times – but at Christmas it can go out of the window.

Parents can feel under pressure from stores’ “special offers” combined with “pester power” from kids reaching its peak.

Louise Hill, co-founder and CEO of GoHenry, a debit card and app for children and teenagers, says Christmas can be particularly costly if you have kids eagerly anticipating the latest toys or gadgets this festive season.

She says: “While it’s easy to get caught up in the festive excitement and stretch your budget to the max, there are many ways families can give meaningful presents without overspending.”

Firstly, she suggests setting spending limits.

Hill suggests: “Talk to your family about setting a reasonable spending cap for each gift.

“This can help manage expectations, especially for kids who might have their heart set on a gift without realising just how expensive it is.

“If they know what the limit is, they can then go away and suggest some alternatives if what they want is too much – doubling up as a lesson in budgeting as well.”

If saying no to a gift causes disappointment, she suggests encouraging kids to earn some extra pocket money to contribute toward their gift.

“Our recent research found that for Gen Alpha GoHenry members, vacuuming, feeding pets, and washing dishes are among the top-paying chores, offering young people simple ways to earn extra money,” says Hill.

She suggests that another easy way to keep costs down is to do a Secret Santa gift exchange, where each person gives one present within the budget.

Or instead of individual presents, people could instead club together to buy bigger gifts for the whole family, such as a game or a subscription service that everyone can enjoy.

Hill says: “This can be more affordable and encourages spending time together.”

Avoiding leaving gift shopping until the last minute can also help with tight budgets.

Hill says: “Keep an eye on sales and discounts leading up to December and take advantage of them to secure some bargains.”

Second-hand shopping can be another smart way to save on family entertainment, with many charity shops having stacks of cheap and cheerful board games that could bring the family together over Christmas.

It could be a good opportunity for some nostalgia if parents or grandparents spot pre-loved games for sale that they used to play themselves during Christmases gone by.

To avoid a false economy, it might be worth checking all the pieces are still in the box before parting with your cash.

Hill says GoHenry’s research suggests that Gen Alpha are “massively into second-hand shopping”.

She adds: “By following their example, you could discover some fantastic gifts at a fraction of the original price.”