These are the best expert tips for doing Christmas on a budget this year

Every year we tell ourselves not to overspend at Christmas, to think carefully about the presents we buy and to prepare diligently to enjoy a stress-free festive season.

Now it’s December 1, panic will inevitably set in and, before we know it, we’re kicking off the new year with a debt hangover. But given the cost-of-living crisis, we really do need to resist festive spending fever and consider what we’re buying – and why. Not only to ease the financial burden but the emotional one.

‘But as Christmas has become intertwined with capitalism, so the “value” of a gift can become intertwined with social status. It can propel people to spend beyond their means.’

There are other factors at play, too. ‘Christmas can bring up complex memories and one of the ways to cope with difficult or ambivalent feelings is to go out of our way to create the “perfect” Christmas,’ says Vahrmeyer. ‘The unconscious fantasy being that as long as “everything is perfect”, the sad or bad feelings can be kept at bay.’

It’s also a time when families come together in a way they do not at any other time and old dynamics and behaviour patterns can return. ‘Sibling rivalry, envy, competition and inadequacies can play out with adults. This can mean people lose sight of how much they wish to spend and on whom,’ he says. And that’s just for starters. Wanting to be liked or loved also plays a significant role where gift-giving is concerned.

At this time of year, the music, scents and festive buzz can result in sensory overload. ‘Unless we are aware of at least some of these tactics, our brains will automatically react and we can end up being a tad more impulsive on our shopping trip,’ says Kate Nightingale, head consumer psychologist and founder of Humanising Brands.

The reality is that buying something on a whim will cost more and mean less than a gift that shows you’ve put thought into it – and that has nothing to do with the monetary cost. It could be something small you remember they mentioned in passing, a framed photograph of a treasured memory, or organising an activity you can enjoy together in the new year.

‘Ask yourself: if you buy this thing, is it really going to express how you feel about them? Can you make something without spending money? Can you provide an experience instead that would mean more to the person?’ says Vyas-Lee.

Don’t be afraid to bring up the subject of doing things differently this year with friends and family. Relieving them of the societal and financial pressures is a gift in itself.

‘It can feel easier to spend that extra £20 than have that conversation but people will appreciate you doing it. Set budgets, organise secret Santas, or even choose a theme such as books this Christmas,’ she says. ‘It might not go down well with everyone but ultimately not everybody’s going to have a positive reaction to what you do. And that says more about them than you.’

Don’t panic buy

‘The trick to avoiding impulse shopping lies in planning,’ says Brean Horne, personal finance expert at NerdWallet. ‘Create lists for all of your intended purchases – presents, food, decorations, events, travel. Set a budget, note it down and refer back to your lists before purchasing. This will help you stick to a limit.’

‘Many people feel obliged to buy gifts for others they know they won’t use, with money they don’t have and cause themselves stress they don’t need. To fulfil that obligation, we do tit-for-tat giving. Instead, agree to a pre-Christmas “No Unnecessary Present” pact. Less cost, less debt,’ says TV host and money guru Martin Lewis.

Get ‘appy

‘Useful gifts are always the best gifts,’ says Alexandra Stedman of thefrugality.com who has teamed up with TK Maxx to share her savvy tips. ‘Kitchen essentials, hand soap and socks will be guaranteed to be used. Buy multipacks, such as candles. Split them up, wrap with ribbon and you’ve got a gorgeous party gift.’