Christmas is a difficult time for many, with budgets, wallets and purse strings quickly finding themselves lighter and experts are providing tips for how people can save money this silly season. 

Central Otago Budget Services Inc. Co-Ordinator, budget advisor and educator, Pam Hughes says a few helpful tips include setting limits and sticking to the plan. 

The community organisation, funded by Central Lakes Trust, provides free budgeting and financial support services in Central Otago, Queenstown Lakes and Maniototo.

“Discuss gift buying with family and friends and set maximum limits. You may decide to buy only for children,” she says. “Or “homemade gifts”, pre-loved gifts, vouchers for gardening etc. Make a list of who buying for and stick to it.”

Pam says to make use of specials through the year for gift buying, and also for food - (For example) Christmas cake ingredients. 

“Don’t leave shopping to the last minute as you will panic buy.

“Plan your Christmas menu and start buying a little extra at each grocery shop. Have a list as you could end up buying more. Also saves the crowds at Christmastime.”

Pam Hughes says to make a budget and stick to it at Christmas.

Pam says using cash instead of cards means you can visually see the limit of your purchases and helps avoid overspending. 

She also says credit is a quick way to debt and you often end up spending more.

“Only use cash when purchasing your Christmas shopping – don’t use EFTPOS or credit cards as the transactions are harder to keep track of at the time.

“Resist the temptation to borrow money or use credit cards. Look at the cost of repayments. If borrowing, calculate how long it will take to pay back the dollars after Christmas.  

“If it’s going to take longer than June, look at reducing the amount of borrowing. Remember getting into debt is normally more expensive than paying for the goods outright.”

Pam says, however, the first priority should always be to put money towards the essentials of living - phone, power, rent or mortgage. 

She also says keeping a track of spending means you can use that knowledge to plan for next year, and says a special “Christmas savings account” is always a good idea. 

“Don’t forget to keep up to date with all your regular payments, e.g power, phone, rent mortgage etc.

“Open up a Christmas savings account so that you can start saving for next year.  

“Tally up what Christmas has cost you this year and start making allowances for next year.

Enjoy your stress free Christmas.”

Pam's alternatives to big spend ups:

• Allow time to make presents yourself.
• Try Secret Santa style giving. Each person buys for just one person.
• Think about labour based presents/vouchers.
• Allow for travel costs for travelling away.
• Allow for extra guests coming to stay.
• Allow for pets going into Kennels or Cattery if you are going away.
• Decide what you are doing for Christmas – having a big family gathering share the cooking/costs etc even if you are hosting the big dinner.
• Stick to your menu and gift buying plan.

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