5 ways to avoid overspending at Christmas

As December draws near, the Christmas adverts start appearing on the TV, the supermarkets are already stocked with gifts, and our emails are filled with ‘must–have’ deals. It’s a time filled with excitement and anticipation. But for many, it also comes with a sense of pressure. Last year, the Bank of England reported that households spend on average £713 more in the month of December.

As Christians, we know that the heart of Christmas has never been about what we buy, but who we celebrate. Yet it can still feel difficult to take part in Christmas festivities in a way which feels distinctive.

At Christians Against Poverty (CAP), we meet so many people who feel the strain of Christmas; wanting to bless their family and friends but worried about stretching their finances. Our latest client report, No time to lose, found that 59% of CAP’s clients had to borrow money to pay for their regular food shop. With this in mind, how can we avoid overspending this Christmas?

Here are five ways to keep this Christmas affordable, meaningful and full of hope.

1.    Remember the true meaning of Christmas

Christmas celebrates the greatest gift of all, Jesus Christ. God didn’t send his son wrapped in luxury. Instead, he was born in humble circumstances. That simple truth reminds us that value isn’t found in giving monetary gifts, but love.

Before you write your Christmas shopping list, you could pray and ask yourself some simple questions:

• What matters to me most this Christmas?
• How can I honour God in my spending?
• How can I share love and kindness in a way I can afford?

A Christ-centred Christmas isn’t about maximising your budget but rethinking how you can show the love of Jesus in action.

2.    Set a realistic budget (and stick to it!)

The answer to ‘how much is too much to spend at Christmas?’ is going to be different for each person, but what’s clear is that if you’re getting into debt or feeling pressure to spend more than you can afford, then that’s too much!

It can be easy for Christmas to snowball into overspending if we don’t plan ahead. Now is the perfect time to make a budget so you stay in control of your spending. Sit down with your free CAP budget worksheet and work out what you can genuinely afford, not what Christmas adverts say you should spend.

If that feels overwhelming, here are some simple steps to get started:

• Start with your income. How much money do you have coming in?
• Know where your money’s going. How much are you spending and what are you spending it on?
• Balance your budget. Work out if you’re spending more than you have coming in and see where you could make changes.

Making a budget isn’t about cutting out everything that brings you joy. But it is so important to be honest with yourself about what you can realistically achieve with your money, prioritising the things that are most important.

3.    Give creatively, not expensively

Often, the most thoughtful Christmas gifts don’t come with a big price tag. When Jesus came to this earth, he brought hope, peace and joy: things that money can’t buy. This Christmas, why not find more creative ways to tailor your gift-giving without spending too much?

Here are some ideas to get you started:

• If you’re a parent, find tips on how to make Christmas special for your children on a budget.
• Do an act of service for a loved one, such as babysitting, cooking a meal or visiting them for a coffee.
• Explore homemade Christmas hamper ideas on a budget.
• Do a shared experience together, like going on a walk, having a film night or hosting a board game evening.

4.    Find ways to help your local community

Christmas isn’t just about what happens in our homes, but also how we love those around us. Jade found herself in debt after an abusive relationship, having to choose between feeding her children or paying the bills. It was when Holy Trinity Church stepped in that she received practical support to get out of debt, starting with emergency food aid.

‘I’m actually looking forward to Christmas this year – I can’t wait to celebrate Jesus’ birth with my children, free from worry. And thanks to the support of compassionate people, my kids and I are building a new life filled with peace and joy, with Jesus at the centre.’

You might be wondering how you can help someone like Jade in your community. Why not pray and see what God places on your heart?

You don’t have to spend a lot to make a big difference. You could:

• Volunteer with your local church.
• Donate food to your local food bank.
• Go on a prayer walk around your community.
• Check in on neighbours who might be lonely.
• Buy an emergency food aid parcel for someone like Jade.

5.    If you’re struggling this Christmas, get support

If you’re feeling worried about your Christmas finances or know someone who is, make sure you reach out for help. At CAP, we work alongside local churches to offer free debt help, as well as money coaching workshops, life skills groups and job clubs to help you manage your money with confidence. Get help here.

Photography by Tom Price.