Buying presents always ends up costing more than you think, especially when prices across the shops aren’t giving anyone an easy ride.
It’s so easy to pop into town for a couple of small bits and come home having blown through a week’s wages without really trying. Getting through December without an empty bank account mostly comes down to getting ahead of the panic buying. Setting a realistic spending cap and sticking to a firm list helps, but there are plenty of practical ways to find thoughtful gifts without paying full whack. A few basic changes to how and when you buy can take the sting out of the high street and keep your finances in one piece.
Focus on the bigger gifts.
Saving 20% on a £20 gift is nice, but saving 20% on a £200 gift makes a far bigger difference. Work out which presents on your list cost the most, such as gadgets, jewellery, or toys for the children. Spend more of your time hunting for deals on these items. Smaller gifts and stocking fillers are still worth buying in offers if you spot them, but putting your energy into the big-ticket items will usually bring the largest savings. It also helps you stay on track with your overall budget.
Use your loyalty points and cashback.
Many of us have loyalty points sitting unused on supermarket cards, shop memberships or credit cards. Now is a good time to check how much you’ve built up and where you can spend it. Some schemes let you swap points for vouchers worth more than their face value.
Cashback websites can also give you money back when you shop online through them. Some credit cards offer cashback on certain types of spending too. Making a note of which offers apply to which presents can help you save without much extra effort.
Compare prices before you buy.
It’s easy to buy the first item you see, but prices can vary a lot between shops. Take a few minutes to check other retailers, both online and on the high street. You might find the same item for much less elsewhere. Price comparison websites and price-tracking tools can alert you when an item drops in price. Some shops also offer to match a competitor’s lower price. A little research could save you a surprising amount across your whole list.
Start early, and finish late.
Starting your Christmas shopping now gives you more time to spot good deals and spread the cost over several months. It also means you’re less likely to panic buy in December. Sales events such as Black Friday, which falls on 27 November this year, can be a good time to pick up bargains on items you’ve already planned to buy.
For family and friends you won’t see until after Christmas, the January sales can offer even bigger discounts. You can also stock up on cheap wrapping paper, cards, and decorations for next year. Shopping across a longer period makes Christmas feel much more manageable.
Check for hidden discounts.
If you work for a larger company, you may have access to an employee discount scheme. These often include money off at well-known shops, restaurants and tech retailers. Check your work intranet or staff benefits portal to see what’s available. Don’t forget any gift cards or vouchers tucked away in drawers or your email inbox. Check the balances and expiry dates, then use them towards presents. Spending them now means less money coming out of your budget.
Leave items in your basket.
Before buying something online, try leaving it in your basket for a day or so. This gives you time to decide whether you really need it. It can also stop you making impulse buys you later regret. Some shops send a discount code to encourage you to complete your purchase. It doesn’t happen every time, but it’s a nice bonus when it does. Unless you’re in a rush, a little patience can pay off.
Stack your savings.
You don’t always have to stick to just one discount. Many purchases let you combine savings, such as using a voucher code, paying with a cashback card and shopping through a cashback website at the same time. Adding these together can make a noticeable difference.
Search online for discount codes before you check out, as many shops have offers running. Signing up to a shop’s newsletter can also unlock a welcome discount. Just remember to unsubscribe afterwards if you don’t want lots of marketing emails.
Pay safely and avoid debt.
If you’re buying something that costs between £100 and £30,000, paying by credit card can give you extra protection if something goes wrong. However, only use credit if you can pay it off in full, to avoid paying interest. Be careful with buy now, pay later schemes, as missed payments can lead to fees and harm your credit score.
Setting aside a small amount each week between now and Christmas can help you avoid borrowing. Keeping track of what you’ve spent helps you stay within your budget. If you’re worried about money, free help is available from charities such as StepChange and Citizens Advice.
Get creative with presents.
A thoughtful gift doesn’t have to be expensive. Homemade treats, such as biscuits, jam or crafts, can mean a lot to the people you love. Experience gifts, like a day out or a meal together, can also create lasting memories.
Consider suggesting a Secret Santa with family or friends, so everyone buys just one present. Passing on an unused gift to someone who’ll love it is also fine. Being creative can help you enjoy Christmas without worrying about the bills in January.
