Christmas is a little over three weeks away. With the added pressure of organising your life for the holidays, you have to organise your expenses as well. However, it is never to late to start a financial plan for the holidays and if you follow these simple rules, it should take some of the stress off.
According to a study by Roy Morgan and the Australian Retailer’s Association, Australians are set to spend 48 billion dollars this Christmas. With that in mind, we have a couple of handy tips to cut back on spending:
Cut back on food
If you are getting together with your family and friends this Christmas, then it is important to communicate what you are bringing to the table. More often than not, there is a ton of food left over and it goes to waste. Try and list exactly what everyone is bringing so that you can cut down the cost of the meals and don’t overlap on food. Just simple planning and communication can save you a lot of money during the expensive time.
Set a specific budget and stick to it
The kids want technology this Christmas. From the same Roy Morgan study, it found that 69 per cent of children thought that an iPad would be a good present. Make sure you are aware of what people want for Christmas and if it expensive technology, then you can set up a plan to pay it off weekly. If that won’t suit then getting personal loan can help you out in the interim without causing too much damage to the wallet. According to Money Smart over 80 per cent of people who go into debt over Christmas will pay it off within the first three months. Border Bank’s Personal Loans are a great way to borrow money for any worthwhile purchase and have recently won a Money Magazine award and 4 Mozo awards for their great value.
If you have Christmas with extended family members, why not do a secret Santa so you only have to to buy one present It is much easier on your shopping list and your finances. If you have to buy supplies for the festive occasion, stick to the budget brands. No one cares if they are eating off fancy paper plates, it is all the same.
Teach your children to save the Christmas money
Again, according to Money Smart nine out of 10 children will receive money as a Christmas present and it normally ranges between $100 – $200. Encourage them to put it in the bank as soon as possible. Instilling good money habits whilst they are young is key to them growing up to be successful with money in later life. Adults also have the chance to save with our Christmas Club Account, allowing you to prepare for the next holiday and festive period while avoiding the post season debt trap.
This holiday season, don’t let the lack of planning your finances ruin the big day.