With Christmas only weeks away and money tight, it can be daunting for parents to start thinking about buying presents, writing cards and putting up Xmas decorations.
With nobody escaping the impact of government cuts, families up and down the country can do with a few tips to make their money go further.
1. Plan aheadWhen getting Christmas presents it is best to plan as far in advance as possible to take advantage of seasonal sales that happen throughout the year. The January sales, for example is a great time to bag some great deals and also help spread the cost. So you could start your Chrismas 2011 shopping in January! If you have an iPhone or other smartphone, then you might consider downloading a gift manager app that will allow you to add people you need to buy presents for, track budgets and update gift statuses.
2. Make a listDon't worry if you haven't had time to plan ahead. In the run up to December, you should make a master list of all the things you will need to buy for Christmas and all the people you need to buy gifts for. The list will also help you to plan and prioritise what you need to buy this month and what can wait until the next month to spread the financial burden of buying everything at once.
3. BudgetThe most important thing in any shopping trip you make is to set a clear budget for how much you want to spend overall and how much of that you decide to allocate to each gift. By sticking to your budget, this will help you to plan better and avoid over-spending on items that you might not need.
4. Avoid a financial hangoverThe average family spends almost £700 at Christmas time. By being more financially-savvy, you can spread out your expenditure more evenly to avoid being hit with a massive bill in January. Remember, if you're paying for goods on credit, interest rates can vary between cards so factor this in to your decision making to avoid a financial hangover in the New Year. It is important to have a plan in place when it comes to debts and pay off balances as quickly as possible.
5. Smart spendingIn the run up to the festive season, try to cut out some treats and expenses to save some extra cash. For example, by bringing your own lunch to work and giving up that cup of coffee can save you £7 per day (£5 for lunch and £2 for coffee) and over a six week period, that amounts to £210 by Christmas.
6. Send e-cardsChristmas cards aren't always cheap, even with the 3-for-2 deals in the shops. You can save some money and the environment by sending free ones online. Alternatively you can choose to make your own ones at home with the kids with some coloured card and crayons. The best cards are usually the ones with most thought behind it.
7. The gift of thriftYou can also get thrifty and buy wrapping paper that can be used throughout the year. Plain gift wrap without the Santas and Rudolphs can be used to wrap birthday presents and can save you the hassle of buying new rolls.
Having a clear out before Christmas is also a good idea to raise some extra cash. Selling old toys on eBay and then spending the money on new gifts is a great way to recycle and help fund Christmas presents.
8. Look onlineLook online for the best deals to get an idea of what you can get online and what is available in the shops for the lowest prices. Comparing prices online can give you a rough idea of what to expect and where to find them even before you leave the house. Make use of supermarket loyalty and saving schemes to boost your budget. Tesco for example, allow club card holders to quadruple the value of club card points if they exchange them online. Redeemable against magazine subscriptions and days out, you can treat friends and family to useful and memorable gift experiences.
The 'deals' and 'vouchers' tabs are updated regularly so you can pick up some great bargains and inspiration if you're stuck for gift ideas. It might also be worth signing up to cashback websites like quidco.com if you're considering buying the bulk of your shopping online this year. If you make a purchase through cash back sites, they reward you by giving you a proportion on the commission they take and help you lower the cost of your purchase as a result.
10. Spend and Save
Whilst online, you might want to investigate spend and save websites where you earn points from your online shopping.
by
Kate Moore, Head of Savings and Investments at Family Investments | 
Give The Gift of Life This Christmas
