Shopping: Cut-Price Christmas

You can still give your family a great Christmas without breaking the bank. We've got a whole load of expert tips to make sure you're not still paying for Christmas next summer .

Round about now you're probably wishing you'd saved more over the last few months, wondering how far your credit card will stretch, and cursing the fact that you have such an enormous family.

Christmas can be an expensive event, with presents, food and party frocks to purchase. Even ultra good people who stick to budgets throughout the year can find themselves slipping in December with the temptations of today's consumer Christmas.

Which is why it's important to make yourself a Christmas budget, which will restrict your spending while allowing for the fact that certain extras need to be taken into account. It may sound boringly sensible, but it will mean your holidays will be guilt free and much more enjoyable without the dread of January bills.

If you make a complete and exhaustive list of everyone you have to buy for, you'll be less inclined to grab everything in sight when in the shops, thinking your next door neighbour's sister might like that pretty hat you've just seen.

Write down one great idea next to each name, and secretly ask around to make sure it's something they'd really like. No point in spending pounds 40 on a red sweater for Uncle Bert if a quick call to his wife would tell you he already has two...

List the friends and family members with whom you typically exchange gifts. Then, decide if anyone can be cut. Perhaps the adults of the extended family might agree to just exchange tokens this year - bottles of wine for example - and save money for the children's presents. Or why not suggest to friends that instead of giving gifts, you all meet for a big night out instead?

If you and your partner are hoping to save some cash, why not agree to not buy anything for one another now, and instead save the cash towards a weekend away in deepest, darkest February when everyone's miserable? That gives you two more months to save the pennies and something to look forward to in the post-Christmas stupor.

Next step is, as independent financial adviser and journalist Michelle Williams says, 'to set a budget for the gifts you are going to be buying and stick to it. And then aim to come in under it: if, for example, you set aside pounds 20 for a hardback book for someone, shop around in case you can find it for less somewhere unexpected, like your local supermarket.

'It might sound miserly, but don't spend the difference on another gift for that person: learning to beat your budget is good financial discipline and not a bad habit to get into!'

There's still time for shopping online, if you're quick, and there are some amazing bargains to be had. You'll also save money on bus, train, petrol and parking fares this way, and many gift sites are waiving postage and packing fees in the run-up to Christmas.

There's also less chance of you getting carried away browsing if you're shopping online rather than in a store. Welsh fashion stylist Kate Manning says, 'I do all my shopping online at Christmas now because I found that I couldn't go into M&S for my mum's pressy without buying something for myself in per una! And buying a bag for my little sister in Topshop just ended up with me buying myself a black dress and pair of boots I spotted. Buying online keeps me focused!'

Try the following sites for fantastic gift ideas, and unusual things at affordable prices: www.kensal.net, www.muji.co.uk, and www.firebox.com

You don't have to spend big to make a big impression. Remembering someone's favourite flowers, or bath oil, or classic book they've always meant to read will often mean more than a flashy expensive gadget.

It may sound cheesy, but the best gifts are the ones that show that the recipient has really been in your thoughts, so take some time to work out what exactly they would like, and ideally don't buy for themselves, even if that is just a particular organic jam.

Baking biscuits, making chutney, or creating your own jewellery can all work out cheaper than buying it in the shops, and will instantly transform what could be a measly present into a really thoughtful one.

You can also combine homemade and bought, for example chocolate chip cookies will look great presented in a festive Christmas tin. Just watch that you don't need too many expensive ingredients or equipment, which will cancel out your savings.

It doesn't even have to be a physical gift - taking your great aunt out to the cinema might make her day in a way that a box of chocolates never could. By making a homemade gift or doing something useful or fun for your friends and family, you'll show that you care enough to spend time as well as money.

If you're planning on buying a more expensive item, such as electronic equipment or furniture, it can be tempting to succumb to 'buy now, pay later' deals. This is all very well - until later rolls around.

Richard Gale, service support manager at National Debtline (www. nationaldebtline.co.uk), says, 'One key thing that we tell people is that whatever they borrow has to be repaid at some stage and, if they're buying on 'buy now pay later', if they can't afford it now, will they be able to pay it later?'

Another option might be to ask your credit card company if you can delay payment for a month, but this is likely to sting you with interest charges.

'Normally with this, if you miss a payment, the interest still continues to accrue,' says Richard. 'So if someone's used to paying off their credit card each month in full, then usually you find that although they have authorised that missed payment, interest will usually accrue on the original amount.'

Kids are heavily influenced by the world around them, and with so many adverts on the TV, in magazines and even on things like cereal boxes, it's no surprise that they are increasingly materialistic.

Try to minimise their exposure to consumerism by chucking out catalogues before they can read them, and muting the adverts when you're watching TV.

Don't be afraid to talk to your kids about money and what you can and can't afford. Ask them what they really want and what they can do without, so you don't waste money on toys that will be abandoned by New Year.

It's easy to forget about things like entertainment, postage and travel costs but they soon add up, so put them in your budget too.

If you're planning on travelling over Christmas it's worth booking tickets in advance - some saver fares on trains, for example, can be half the full price if booked a couple of weeks in advance.

Making your own Christmas cards can be a great saving, if you have the time.

Or to save time, why not design one card and photocopy it? Just make sure the copying charges don't eat up your savings.

If you prefer shop bought cards, plan ahead for next year and get them for a fraction of the price in the January sales. You may even find they start cutting prices in the week before Christmas - perfect if you've left it late this year.

The holidays are no time to scrimp on how much socialising you do, but you can keep the costs to a minimum.

Meeting for brunch will save on expensive dinners, or why not get a DVD and some popcorn for a cheap night round the telly? School concerts and church carol services are also a cheap but festive place to find your entertainment.

Now that you've worked out how to reduce your spending, all you have to do is stick to it. Do this by leaving the shops as soon as you've ticked off everything on your list (browsing is bound to lead to 'spur of the moment' splurging) or, if you're shopping online, turn the computer off.

And if you're struggling, just remember how wonderfully free you will feel in January, knowing you're not neck high in debt.

Source:Western Mail