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How to Keep the Christmas Excitement Alive on a Budget

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Christmas may be the most wonderful time of the year, but it can also cause great financial stress for many, and the cost of living crisis is set to make this festive season harder than ever.

3 in 10 say that their mental health plummets over the Christmas period, according to Mental Health UK, with increased pressures on finances and keeping everyone happy.

Research by the Bank of England shows that on average, it is estimated that an average household spends just over £3,240 a month during December making sure that everything is prepared for Christmas. With that in mind, experts at life insurance brokers, Reassured, have whipped up the top five ways you can budget for the Christmas period.

1. Monzo roundup and flex

Monzo is a digital bank. It’s easy to use and has many offerings, from a typical current account to free spending abroad. One of Monzo’s amazing features is the Monzo roundup. It is a simple way to save money because every time you buy something, they’ll round up the cost to the nearest pound and save the change in one of your pots that you create! It’s super easy to turn on; just create a new pot and toggle the ‘roundup’ transaction. This is a great way to save money while doing your Christmas shopping this year and ahead of next year.

Additionally, Monzo offers alternative ways to help you out this Christmas. Monzo Flex helps you spread your Christmas shopping across three monthly payments at 0% interest.

2. Secret Santa

Secret Santa, a beloved and entertaining gift-exchange tradition, doubles as a fantastic strategy for saving money this holiday season. Consider initiating a Secret Santa gift exchange within your family this year. This way, you gain the flexibility to manage your budget effectively, ensuring a cost-conscious celebration for all.

3. Pre-loved gifts

Discover the savvy way to save this Christmas: embrace the trend of purchasing pre-loved gifts. Thousands of high-quality, unused items are now available on popular platforms such as eBay, Vinted, and Depop, all offered at unbeatable prices. Make your holiday season both budget-friendly and eco-conscious by choosing thoughtful, second-hand gifts.

4. Lean on loyalty

Maximise your savings this Christmas by staying informed about the available loyalty programs. Don’t forget to review your existing loyalty programmes for any unclaimed points or rewards. Moreover, as you finalise your Christmas shopping list, explore the loyalty programmes offered by the stores you plan to visit. This proactive approach can help you unlock extra cash to make your holiday shopping more budget-friendly.

5. Cashback

Did you know that most banks in the UK now offer cashback rewards? If you didn’t, you do now! It’s a fantastic way to get some money back after your Christmas shopping, as many banks have teamed up with popular high-street brands to provide cash back. But the benefits don’t stop there; many banks also offer cashback on monthly bills, making it an excellent way to save on your energy expenses.

While these financial tips may help to stretch the budget, many parents will face the challenge of managing their child’s expectations during the holiday season. Reassured has collaborated with parenting expert Isobel Champion to provide valuable advice for parents on how to speak to their children about financial issues while keeping the festive spirit alive.

Champion reminds parents to reiterate to their children that “Christmas isn’t all about the presents; it’s about spending time with family, cooking seasonal foods, decorating your home, giving to those less fortunate, and hearing about the origins of this time of year.”

However, Champion added that parents should validate their child’s feelings of disappointment. These are true feelings that should be accepted, and the best way to support any child is to spend time with them, give them extra care, and love.

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