Festive finances stressing you out? 4 expert tips to take charge

It’s the time of year when Christmas adverts are all over the television, festive snacks are in full flow and there’s a new temptation to spend everywhere you look. That’s all before even mentioning the topic of presents and the pressure that can pile on to buy bigger, better gifts than last year.

Yet at the same time, the cost of living continues to squeeze families and the impact of price rises across the board over the last few years is still being felt. Whilst inflation has cooled a little, prices are still at a peak and it’s no surprise if you’re feeling anxious about the prospect of funding all of the festivities this year.

Financial anxiety can have a huge detrimental impact on your wellbeing, so rather than ignoring the situation and burying your head, here’s how you can confront your financial anxiety and take control of your spending this Christmas.

Pinpoint the root cause

The first step to start off with is identifying the cause of any money anxiety that you have at the moment as we approach Christmas.

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For example, do you feel anxious about money because you don’t feel confident in your ability to make wise money decisions when it comes to gifts? Are you worried about mounting debt or financial responsibilities that you’re not sure you can meet? Or, is the anxiety caused by the feeling that you should have more money in the bank than you currently do?

Once you identify the reason that you’re feeling anxious, you can look at how to take control of the situation.

Face your financial situation

Whatever the cause of your worry, facing the facts and understanding the financial position that you’re in is the key to alleviating your anxiety about money. Although it may be tempting to ignore the numbers - because it’s not a stretch to say that budgeting doesn’t have the most festive feel - think about the two possible options in front of you.

Either you ignore your financial constraints and hope that magically your budget will increase, or you remind yourself that the reality is that ignoring your finances will likely fuel your anxiety further.

Sit down, take a clear look at your financial situation and work out how much you can comfortably spend this Christmas. Once you have a grasp on your situation, you can make a plan and allocate your budget across food, presents and any experiences you want to have, whether that’s ice skating under the stars or an evening of mince pie making.

The sooner you have a clear idea of what you can spend, the easier it will be to shop intentionally and avoid getting distracted by shiny incentives to spend more.

Be clear with friends and family

Christmas can be a tricky time for many people financially, not simply because of the endless opportunities to spend but also because of expectations from family and friends when it comes to catering and gifting. Especially if you’ve always been the host over the festive period, it can become a default and it may be assumed that you are happy to continue to host - and with that, purchase - all of the food and drinks that come with this time of year.

If you find yourself stressed about the spiralling bill, be honest with your nearest and dearest and don’t be afraid to ask for contributions.

It may be worthwhile thinking about whether to mix up your traditional approach to presents too, especially if you find yourself buying gifts out of obligation or habit for people who don’t really want or need them - and vice versa - have a frank conversation and agree to call it quits on presents. Alternatively, if you do still want to get gifts for one another, set a clear budget or try a charity shop challenge to keep costs down and shop sustainably too.

Remember it’s about who, not what

It’s easy to forget in the midst of stockings, Santa visits and sherry that Christmas isn’t about the size of the gifts or how much money you spend. After all, what truly matters is spending time with your closest friends and family and making memories so this year, don’t give yourself a festive financial hangover.

Ellie Austin-Williams is the author of Money Talks, a Lifestyle Guide for financial wellbeing. Find her on Instagram at @thisgirltalksmoney.

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