Carly Morris, Head of Savings at Chetwood Bank, said: “Christmas can be a stressful time, and not just when it comes to buying and wrapping presents.
“Despite inflation being at a significantly lower level than it has been in the recent past, the high cost of living remains a challenge for many. Now more than ever, it’s important to set yourself guidelines for budgeting, saving, and spending this festive season – and, where possible, stick to them.
“One effective strategy is to split your budget into distinct pots to account for different expenses: gifts, travel, groceries, and dining out. By planning ahead, you can decide which categories to prioritise, minimising the risk that you overspend on one thing and not leave enough for the rest. Impulse buying might be the lifeblood of the Christmas market, but as tempting as it may be, it can harm your financial wellbeing.
“There can be a temptation to rely on credit to lessen the burden that the festive period places on short-term finances. But, while borrowing can sometimes be a valuable tool, it’s important to fully understand the terms of any credit agreement. Mismanaging credit could lead to high fees, financial difficulty or damage to one’s credit score.
“Additionally, consider how to maximise your savings and make your savings work harder. Using different types of savings accounts can help you achieve your short and long-term savings goals. Easy Access accounts are ideal for funds you’ll need at short notice, while Fixed Rate accounts can provide better returns if timed carefully. For instance, opening a Fixed Rate saver in summer may not be the answer if you’ll need money for presents in the winter – but locking into a one-year Fixed Rate account at the end of November could give you a boost for next year’s festivities.
“By setting a strong foundation now, you’ll not only enjoy this festive period with peace of mind, but also set yourself up for a better financial future. With planning and discipline, you can stay on track with your goals without jeopardising your financial health.
“We all want to enjoy the festivities and time spent with our family and friends, and these simple steps can help you do that without putting your short or long-term financial health at risk.”
