Christmas can feel a long way off at the beginning of October, but there are only about 12 weeks left until Christmas Day.
That is enough time to make a meaningful difference to how you pay for it.
For many households, Christmas spending arrives in a rush. Presents, food, travel, entertaining and school-holiday costs can all land within a few weeks. When the money has not been set aside beforehand, the credit card can become the easiest way to bridge the gap.
The problem is that Christmas eventually ends, while the repayments can continue well into the new year.
WORK OUT WHAT CHRISTMAS WILL COST
Start by thinking about what you are likely to spend across the entire Christmas period, rather than focusing only on presents.
Your list might include gifts, Christmas lunch, social events, travel, accommodation, school-holiday activities and additional groceries. There may also be expenses such as end-of-year celebrations, childcare or having family stay with you.
If you estimate that Christmas will cost $1800, dividing that amount across the next 12 weeks gives you a target of $150 per week.
A $1,200 Christmas works out at $100 per week, while $600 requires $50 per week.
Seeing the total amount early gives you time to decide whether the number feels comfortable and where you may want to adjust your plans.
CREATE A CHRISTMAS BUCKET NOW
Once you have a target, keep the money separate from your everyday spending.
A dedicated Christmas account can make this much easier. Transfer an amount into it each payday and allow the balance to build between now and December.
You do not have to fund the entire Christmas budget before you start buying. Even accumulating part of the money in advance can reduce the amount that needs to come from December’s income.
If your budget allows $100 a week for the next 12 weeks, you could have $1200 available by Christmas. That creates a very different experience from reaching December with no money specifically allocated.
START JANUARY STRONG
The financial impact of Christmas does not stop on December 25.
January brings its own expenses, including school costs, holidays, household bills and the return of regular commitments. Carrying Christmas debt into that period can place additional pressure on an already expensive month.
Planning now gives you the opportunity to enjoy Christmas while protecting the months that follow.
You may decide to spend less, change the way gifts are exchanged, set limits with family members or simply start putting money aside this week.
