“Managing money during the festive season can be challenging, but careful planning could make it possible to enjoy the holidays without getting into debt.” says Jonathan Watts Lay, Director, WEALTH at work, a leading financial wellbeing and retirement specialist.

To help with this, WEALTH at work has outlined some top tips to share with employees below.

WEALTH at work’s top 10 savings tips for this festive season

1. Set a budget – Review last year’s bank statements to find out what was really spent, and then create a detailed budget that includes all expenses, such as gifts, decorations, food, entertainment, clothing, nights out, travel, and increased utility bills from spending more time at home. Look for areas which can be cut back and keep any spending within budget. Using free budgeting apps can help to track spending on groceries, eating out, entertainment etc to ensure the budget is maintained.

2. Use online shopping hacks – Price comparison tools can help find the best deals on gifts. Platforms such as Google shopping allow users to track and compare prices. CamelCamelCamel tracks the price of Amazon products, and browser extensions like Honey search for discount codes during online check-out.

3. Beware of Black Friday – Black Friday is on the 29th of November, and Cyber Monday is on the 2nd of December. These are supposed to be days when there are amazing deals on offer, but it is important to check the discounts being offered as they are not always as they appear. Consider using some of the shopping hacks above to check if it really is a deal.

4. Consider creative ways to reduce costs – Agree on spending limits with family and friends and consider alternative gift options like homemade gifts or experiences, which can be cost-effective and more personal. Leave credit cards at home to avoid overspending and consider buying gifts in the sales for people who aren’t being seen until after Christmas.

5. Maximise workplace benefits – People should make sure they take advantage of any employee discount schemes offered by the workplace, offering discounts on for example, groceries, dining and gift purchases.

6. Beware of energy costs – Energy bills can rocket over Christmas due to the increased use of cooking appliances, heating, washing and technology. Small changes such as turning off lights when they aren’t needed, washing clothes at 30 degrees instead of higher temperatures, making sure the dishwasher is only used when full, and cutting down on the number of times the kettle is boiled can add up to really make a difference to bills. 

7. Understand borrowing methods – Borrowing to pay for Christmas should only ever be a last resort, but credit cards are useful for the protection they give for purchases over £100. If you are considering using a credit card, choose cards with 0% finance or cashback.

For those with existing credit card debt, it may be worthwhile to consider a balance transfer to a lower interest card to save on interest payments and pay off debt as quickly as possible and on time to avoid missing out on 0% interest offers and incurring extra charges. Be wary of the ‘buy now and pay later’ deals and understand the terms and interest charges if repayment isn’t on time.

8. Split costs over paydays – Those who have a credit card and are paid monthly could consider splitting the cost between two pay days. For example, if a credit card statement date runs from 1 November to 1 December, anything spent on the card in November will be due for repayment in December. But anything spent in December would be due for repayment in January. All credit cards have different statements and payment dates, so anyone planning to split costs in this way must check these dates. 

9. Budget now for 2025 – A few small changes could put someone in a much better financial position for next year. Reducing the amount of times eating out, taking lunch to work, switching supermarkets and learning to budget can make a huge difference.

10. Automate savings – Consider setting up automatic savings transfers, which round up transactions to save small amounts, but can really add up. For example, if someone buys something for £4.20, the bank rounds it up to £5, and 80p goes into savings. Two transactions like this per day could help save £584 over a year*. Some employers offer payroll-deducted savings schemes into ISAs for effortless saving.

Jonathan Watts-Lay also comments, “Whilst the festive season can be an exciting time for many, it can also be a stressful time for those who are worried about their finances.  There is no shame in someone explaining to friends and family that they need to be careful with their spending this year, they may be feeling the same pressure. 

For those struggling, free support is available from MoneyHelper, Citizens Advice and National Debtline. Many employers are also working to remove the stigma around money worries and encourage their employees to access support including financial education and guidance around budgeting and ways to save money. As well as this, providing access to workplace savings such as a Workplace ISA can help to build financial resilience.”

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