The festive season is a time for celebration, but it can also bring financial stress if you’re not careful with your spending. According to new research from Moneysmart, while 74% of people set a Christmas budget, only 29% stick to it. Many are turning to savings, credit cards, and Buy Now Pay Later (BNPL) services to cover their holiday expenses, which can lead to a post-Christmas financial hangover. If this sounds all too familiar, don’t worry—we’ve got you covered. With these simple tips and strategies, you can enjoy the holidays without the financial regret.
Set a realistic budget
Before you start shopping, decide how much you can afford to spend. Break it down into categories like gifts, food, decorations, travel and entertainment. Track your spending to stay on target.
Be aware of using credit
Pay with cash or debit card and avoid using things such as credit cards and or buy now pay later that you can’t afford. If you do use credit products, stick to what you can afford to repay in full. Consider balance transfers to save on interest but be mindful of fees and repayment deadlines.
Monitor your accounts regularly
Keep an eye on your credit card and bank statements during the holiday season. Report any suspicious transactions to your bank immediately.
Be aware of bad deals or scams
Watch for red flags like “too good to be true” prices, limited-time offers pressuring you to act quickly, or poorly rated or unknown online retailers. Stick to reputable stores, and research sellers before buying.
Get help if you need it
If you’ve gone over budget, take proactive steps to regain control. Create a repayment plan for any debt incurred, prioritising paying off high-interest balances first.