Did someone mention Christmas? If you think it’s too early for the ‘C’ word, think again.
We are now squarely in what’s called the “golden quarter” – the crunch period between October and December when retailers do everything in their power to get you to spend so that they can ‘win’ Christmas.
Tins of chocolates at the end of the supermarket aisle, sparkly tops in the shops, ads for sofas delivered for Christmas? It’s already started. It’s no wonder the State’s Money Advice and Budgeting Service (Mabs) issued its planning tips for Christmas a month ago.
Retailers have been gearing up for months to do battle for your money over the holiday shopping events of Black Friday, Cyber Monday, and Christmas.
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The outcome determines their annual financial success.
Donald McDonald, chief executive of Brown Thomas Arnotts, told The Irish Times last month that “40 per cent of our business is done in quarter four, with 25 per cent from mid November to the end of December”.
Manufacturing, marketing, staffing – it takes military preparation by retailers. Most film their Christmas ads in August, for God’s sake.
Consumers need to get planning, too, to avoid overspending. There’s a 10-week runway between now and the big day, so here are some things you can do to win Christmas for you.
Have the “talk” with families and friends about who is doing what for Christmas. Will you go to them, will they come to you – having the talk will clarify plans and help you plan your spending.
“Christmas can be a time of financial stress and anxiety, especially when it comes to buying gifts and hosting family,” says Karl Cronin, regional manager for north Connaught and Ulster Mabs. “Planning early gives you time to build a budget, make a shopping list and set up a savings plan that works for you,” he says.
Hosting is expensive. A whole ham is about €90 and a big turkey can be over €140, that’s not to mention, starters, sides, desserts, fizz and wine.
If you’re on the hook to host, agree early to spread the load to reduce your spend. You’ll take care of the main event, but delegating drinks, desserts and starters to guests will ease the cost considerably.
Christmas can mean a lovely, if expensive roster of drinks, lunches and dinners as friends reunite. These things get booked soon. By taking the lead on planning, you can steer things in a more affordable direction. Suggest swapping a swanky dinner for lunch, for example, potentially sidestepping spending on going out clothes, pre and post-dinner drinks, taxis or a babysitter. Better again, tell them you’re on a budget and book-in a Christmas walk with coffees.
Ringfence money
There are nine weeks between now and the last shopping week before Christmas. That’s two pay (monthly) cheques, or three if your employer pays early in December.
“Don’t just hope you’ll have enough money,” says Kel Galavan, money coach, author and founder of MrsSmartMoney.com.
“Treat your Christmas fund like a non-negotiable bill that you pay yourself each week, by setting up a standing order into a separate account,” says Galavan.
“This gets the money out of sight and into its own dedicated sinking fund, so you’re less likely to be tempted to spend it.”
For example, if you could afford to set aside €50 to €100 a week between now and the first week of December, you’d build a fund of €350 to €700.
“Cash back vouchers from supermarkets are a great way to put money towards Christmas food shopping” says Michael Laffey of Mabs.
Loading deposit return scheme refunds on to a gift card from your local supermarket is another way of building savings towards your Christmas food shop, says Laffey.
Supermarket loyalty programme members should check what vouchers or points are coming to them, too.
Audit what you have
Are you all set for Christmas?
Give it a month and we’ll all be saying it. We can mistake being ready with buying loads of stuff. There is something about the run up to Christmas that can cause your prepper instinct to kick in – as though preparing for a large-scale disaster, or societal collapse, you start stockpiling food, alcohol and clothes to ensure your family’s survival.
“Before spending a single euro, take a look at what you already own,” says Kel Galavan.
“We often buy new decorations, wrapping paper, or even food that’s already at the back of the cupboard,” says Galavan. “Taking that simple step not only saves money but also gives you a nice feeling of being prepared.”
Chances are you’ll find an unused and in date jar of cranberry sauce, plenty of wrapping paper and more than enough Christmas lights to be getting on with.
Declare a truce on gifts
Have you always bought gifts for your siblings? What about your partner, your in-laws, and your friends? If you find yourself locked in a cycle of exchanging unwanted and unused gifts to fulfil seasonal obligations, call a truce.
November is too late to call an amnesty – the starting gun has already popped, so call it now. Tell loved ones you don’t really want for anything, and ask how would everyone feel about taking the foot off the pedal of consumption this year and giving each other a pass?
If this feels a bit Grinch-y, then go the Kris Kindle route. Each family member buys and receives one gift.
“Suggest a secret Santa to family and friends and set a spending limit on it,” says Michelle O’Hara of South Leinster Mabs.
With that limit in mind, you can all ask for exactly what you want – maybe it’s a specific book, a brand of sports socks, face cream or a hair salon voucher. Everybody spends the same amount; you get something you want, no one is wasting money. The positive impact on the planet is a gift in itself.
Make a list
Once you’ve audited what you already have, and you know what you must buy, then make a list of what you will need to spend on.
Apart from spending on gifts and food, add any planned hair and beauty treatments, and expected lunches and dinners with friends to your list, too.
Keep it on your phone and tick it off as you go.
“Try not to be tempted by sales or special offers – unless it’s on your list and you can tick it off, don’t buy it,” says Michelle O’Hara. “Remember, it’s not a deal if you don’t need it or won’t use it.”
There’s a reason why there is Christmas stuff in the shops in October. Retailers bet you won’t have a specific shopping list yet, so they will tempt you to advance buy, willy-nilly.
If we start picking up a few tins of chocolates and biscuits now, some selection boxes, stocking fillers, toiletry sets, socks or whatever – come December, we will have forgotten what we already have and buy more.
So don’t start shopping too soon, unless the item is on your list. And definitely don’t start without a list.
“If you’re out and about and spot something that isn’t on your list, you can put it in your basket, but you have to walk away and think about it for 24 hours,” says Galavan.
“The emotional impulse to buy will almost always fade, and it’s a great way to save yourself from over-spending.”
Santa planning
In just a few weeks time, An Post will be inviting children to post their letter to Santa Claus. Santa has a lot of competing priorities, as parents know. That’s why it pays to make sure your child’s letter is carefully crafted.
The golden rule for Christmas gifts in the house of Mabs’s Karl Cronin is, “something they want, something they need, something to wear and something to read,” says Cronin.
By including some necessities in Santa’s shopping list, Santa’s gifts can tick a few practical boxes, too.
If you are buying individual gifts for an entire family, you could instead give them the gift of an experience, says Cronin. This may work out cheaper than individual gifts.
“A post-Christmas family trip to the cinema will create lasting memories as opposed to individual gifts for everyone,” says Cronin.
Make a budget
How many of us just blaze through December and deal with the financial fallout in January? Unless you set a specific budget for Christmas, you will overspend.
With the list of things you will need to spend on, and likely social events, set an amount against each now.
If the estimated cost tips you into debt, it’s time for a rethink.
This might mean deciding now you will join friends for drinks after dinner, or pledging to opt out of rounds this season, or shopping your own wardrobe instead of buying another sparkly thing that gets worn once.
The alternative is racking up a credit card or overdraft bill that can steal your peace of mind and eat into January pay cheque.
AIB customers alone did a whopping 75 million card transactions of all types in store and online in December 2022, according to the most recent figures from the bank.
December 23rd was the busiest day that year for AIB cardholders, with 2.8 million card transactions in shops. That’s 84 per cent higher than the average day. In the busiest hour, €12 million was spent on cards in-store.
AIB customers spent €5.2 million in pubs on the busiest day, and card spending on groceries was almost 200 per cent higher than the average.
Take note, the party season will have kicked off before your November salary lands. The shopping frenzy proper starts in just six weeks.
Planning and budgeting now means avoiding the worst effects of Christmas on your pocket. By being mindful and intentional about spending early in the season, you can end 2025 on the right note – making the golden quarter a golden period for you.
