Getting ahead of Christmas costs

Is your Christmas tree itching to get out of its box? Are your decorations calling your name? Christmas is just around the corner, and for many of us that means a chance to spend precious time with family and friends while unleashing a bit of festive spirit.

But amid the eating, drinking, socialising and playing, there is another thing that Christmas sometimes brings with it: The bill. New Zealand households have been under several years of cost-of-living pressure, and that means this year might have a slightly firmer focus on the festive finances.

It’s not one cost, it’s 20

The thing about Christmas is that, although it might be just one day on the calendar, it’s often not just one bill. You may be buying gifts, stocking up on food, preparing your house for guests. On top of that you might have just come through work functions and end-of-school events, all which come with a cost, and all within a short period of time. None of these might be a problem on their own, but when they all arrive at once it can mean a bit of planning and strategizing is required.?

The bits that sneak up on you

You probably know about all the big things, and have some idea of how you’ll cover them, but there can still be surprises that catch out even the best-laid budgets. Wrapping paper might add $10 to your supermarket shop. You might end up popping to the shops multiple times as the day draws closer, realising you’ve forgotten something – and then end up buying a few extra things, too. Postage can be much more than you expect, especially if you’re sending things overseas. Your workmates might pull a surprise Secret Santa on you. Sometimes it’s the unexpected bits that can start to tip the balance from comfortable to a bit tighter.

Don’t forget January

A problem for lots of New Zealand households is that Christmas isn’t the end of the spending. Often, come January, you’ve got other things to budget for, whether that’s school holiday programme fees or uniform and stationery costs for the new school year. Financial mentors often talk about this being a particularly tricky time for lots of families.

A simple plan that takes ten minutes

Sometimes, a plan can make all the difference. Even if you have a mental checklist already in place, having it written down can really help get your head around the costs. You might write out all the bills you expect to have through December and January, and roughly what you think they’ll be. Then you could consider whether there’s a way to spread some of the load across October and November, too. Maybe you start keeping an eye out for specials and discounts now.

A survey last year showed that most New Zealanders don’t do any planning or budgeting for the holidays, so this may be a simple step that could make a big difference to your family.

Easy ways to take the pressure off

You might be able to make some small adjustments to take the financial pressure off a bit. If you have a lot of adults at Christmas, you might opt for a Secret Santa swap so you only buy for one person each. Maybe you can share hosting duties or agree on spending limits. Sorted also recommends comparing prices and DIYing to help reduce the cost of gift buying.

Planning something bigger?

If you’re thinking about something a bit larger this year, a bigger gathering or a really significant gift for someone, you might be wondering about other ways to pay for it. Sometimes, it can be appropriate to finance a big purchase. Our calculator can help you see what the repayments might be on any loan you’re considering.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.