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Festive financial stress, and how to take control

If you’re stressed about Christmas because you’re not sure if you can afford it, you’re certainly not the only one.

Talking with someone in your family or a friend can really help. We’re also here 24/7 if you’d like to talk to a counsellor.

Money worries can weigh on your wellbeing

It’s completely normal to feel the pressure of making Christmas special while managing extra costs. Stress about money can show up in different ways.

Noticing these signs is the first step to looking after yourself:

  • Worrying all the time about extra costs
  • Feeling tense or on edge
  • Losing sleep
  • Being irritable with loved ones
  • Avoiding social plans

Why it's easy to go over budget during the holidays

You might know that feeling of worry, guilt, or dread when you check your bank balance and wonder how you’ll afford gifts, food, or travel over the holiday season.

It’s about emotions as much as dollars.

Many of us spend more than we can afford because we want to show our love, hoping the right present will say what words can’t. Sometimes, it’s about avoiding awkward chats.

Saying “I can’t afford it” can feel embarrassing. You might worry about letting people down or feel pressure to keep up.

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How to spot the hidden costs of Christmas

Christmas also comes with hidden expenses that can catch you by surprise, like postage for cards and gifts, wrapping paper, extra groceries and snacks for visitors, travel and petrol for family catchups, or pet-sitting if you’re heading away.

You might also have the expectation of social events or charity donations. Added to that, there’s often bigger utility bills from more cooking and decorations like Christmas lights.

It’s common to use credit, buy-now-pay-later, or dip into savings just to get through. But you don’t have to start the new year with more money worries.

How to set (and stick to) a Christmas and holiday budget

Budgeting can feel overwhelming especially when it feels like you can’t afford anything extra, but starting can make you feel more in control. 

Here’s some tips that might help:

  • List all expected costs: gifts, food, travel, decorations – anything outside your usual spending.

  • Work out what you can spend: what’s realistic without putting too much pressure on your bank balance?

  • Make a list before you shop (and check it twice!).

  • Keep track of your spending as you go. Use notes or free apps to help.

  • Look out for early sales, loyalty point programs, or specials.

  • Avoid last-minute shopping – that’s when it’s easiest to blow the budget.

There are many of us I'm sure for whom the Xmas period is a difficult time & not the jolly time that media & even those about us expect us to find it.

Beyond Blue Forums User

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How to handle expectations and gift giving

If you’re feeling pressure to buy for everyone, you’re probably not the only one.

You can start to get more control over how Christmas spending goes by talking with someone in your family or friend group who might be open to new ideas.

You don’t have to make it all about money. Share ideas as new traditions or fun ways to celebrate together. 

Focusing on what brings you closer together, not what’s spent, makes the conversation easier. Others might feel the same way but haven’t known how to say it. 

Here are some ideas to kick off the conversation:

  • “What if we pooled money with family or friends and chose one really meaningful gift for each of us? That way, everyone gets something special, and it’s a shared choice.”

  • “Could we try Secret Santa or Kris Kringle this year? Each person buys just one gift, with a set price limit. We can make it into a game, like guessing who your gift is from.”

  • “Instead of buying little gifts for everyone in the extended family, how about we make homemade treats? Biscuits, or jams, or crafting something together? We could make cards too.”

  • “What about the gift of our time? We could offer to babysit, help with chores, cook a meal, or plan a picnic or movie night together?”

The best Christmas gift for children? Magic – and it costs nothing

Christmas with little ones can feel extra stressful when money's tight. But the magic kids remember comes from experiences, not expensive presents.

You might like to chat with your family about what Christmas and the holidays mean to you all. If you’ve got kids, being honest can help – especially if they’re hearing about big presents from friends.

When everyone feels included and understands what to expect, things can feel a bit less stressful. And who knows, you might even come up with some new traditions together.

I have to watch my finances these days...and combined with Xmas presents for the kids my head is spinning and I am terrified.

Beyond Blue Forums User

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FAQ: A joyful Christmas on a tight budget?

  • How do I say no to gift-giving at Christmas?

  • How do I deal with feeling like I want to cancel Christmas?

  • How can I keep cooking costs down for Christmas lunch or dinner?

  • What if I can’t afford a Christmas tree or decorations?

  • How can I entertain the kids for free?

  • I can’t afford presents at all – what can I do?

  • How do I keep the kids’ minds off not having gifts?

  • What are some ideas for small gifts for family or friend groups?

  • How do I make the day feel special without spending much?

  • What is the best way to get help financially for Christmas?

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