Manchester Credit Union: A Merry Christmas doesn’t mean you have to break the bank

The festive season is full of joy but can also bring financial stress. Data from StepChange revealed that one in four people struggled to afford Christmas last year, rising to more than one in three (34%) households with children.

The survey also revealed that around four million people relied on credit to cover Christmas costs; one in four said they would have to cut back on their everyday expenses to afford Christmas, and another one million said they would not celebrate Christmas at all due to cost.

This year, research reveals that the average British consumer expects to spend almost £600 (£593.90) on core Christmas-related products and activities – including food, gifts, decorations, socialising and travelling – during the 2024 festive period. 

Purse strings are tighter than ever. With inflation continuing to bite and wages struggling to keep pace, everyone’s looking to make savings wherever possible to avoid having finances interfere with festivities.

Here, Mandy Wilcock, chief executive of Manchester Credit Union, which serves 32,000 members across Manchester with affordable financial services, shares some practical tips to enjoy Christmas while staying within your budget.

1.Shop second-hand

Vinted, eBay and charity shops are treasure troves for gifts and festive outfits, so don’t feel pressured to buy brand-new. Pre-loved items are unique, more sustainable, and won’t break the bank.

2.Free Festive Days Out

Not every Christmas activity has to cost a fortune. To get into the festive spirit without spending hundreds of pounds on tickets and hours in queues, check out local carol services, festive light displays, or free Christmas markets.

3. Ignore Social Media Pressure
Perfectly posed photos of families in matching pyjamas, decorations fit for a department store, and a mountain of gifts are not a reality for most people – and they’re certainly not a requirement for a joyful Christmas! Instead, focus on what matters most: time spent with loved ones.

4.Customise Your Festive Menu

At this time of year, TV adverts portray Christmas dinner tables spilling with luxurious and expensive food and drink. Remember, you should shop according to your tastes. You don’t have to put on a feast fit for a king, and if certain festive dishes aren’t to your taste, skip them! Avoid wasting money on food you won’t enjoy, and plan your meals based on what your family loves.

5.Be Strategic with Cyber Weekend Deals

Deals are everywhere during Black Friday and Cyber Monday, but only buy what you truly need. Make a list to avoid becoming overwhelmed by offers and be strict with your purchases. You can also use price comparison websites like Camel Camel Camel to track prices and ensure you’re getting the best deal.

6.Avoid ‘Buy Now, Pay Later’ Traps
The opportunity to buy now and pay later might seem convenient, but at the beginning of the year, when things are already tight, it can lead to unexpected debt. Stick to your budget and spend only what you can afford upfront.

7.Maximise Loyalty Cards

Supermarket and retail loyalty schemes can help you earn points and discounts on your festive shopping. Members can often get free delivery, early access to sales or special discounts. Plan ahead to maximise savings and consider pooling your points throughout 2025 to help with next Christmas’ expenses. 

8. Start Saving Early
Joining a credit union can help you build a Christmas fund throughout the year, making December less financially stressful. Take control of your expenditure concerns by regularly saving money in a dedicated Christmas Saver Account. Start saving from January to maximise the funds available to withdraw to pay for Christmas.

Photo: Photo by Suzy Hazelwood