By Salma El-Sakka
Financial advisor Dan Wills of the smart money app Plum warns that underestimating the total cost of Christmas can push households into high-interest credit card debt, and he outlines seven practical strategies to keep holiday spending under control.
Start planning early
Wills recommends calculating estimated Christmas costs in January, dividing by 12, and setting aside that amount each month to avoid stressful, expensive last-minute purchases.
Write a strict gift list with spending limits
Set a total budget, list every recipient with an allocated amount, and adjust by agreeing on family spending caps, organizing a Secret Santa for adults, or pooling funds for one larger gift instead of many small ones. Include extras such as wrapping paper, cards, postage, and batteries in the tally.
Adopt the four-gift rule for children
To manage expectations, Wills suggests giving each child four presents: something they want, something they need, something to wear, and something to read.
Consider pre-loved and regifted items
Unwanted candles, books, or toys at home can be regifted, while charity shops, eBay, and Vinted offer second-hand options that children accept on their own merit and that benefit both budgets and the environment.
Choose handcrafted gifts with sentimental value
Homemade baked goods, framed photos, or babysitting vouchers carry more emotional weight than generic store-bought items because they reflect time and personal effort.
Approach Black Friday sales strategically
Track prices well before the event to confirm genuine discounts, and only buy items already on the prepared shopping list to avoid impulse purchases driven by hype.
Avoid letting debt accumulate
Wills cautions that digital payments such as Apple Pay make spending feel less tangible, and Buy Now, Pay Later services can create multiple simultaneous repayment obligations if not carefully planned.
