Christmas in Ireland will be dearer again this year, with prices up and down our supermarket aisles climbing and the cost of giving gifts and going out heading in pretty much the same direction.
And when we say higher, we’re not talking a few bob either. A few weeks back we totted up the main costs many Irish households are likely to face, and the final bill – and we did not lose the run of ourselves – came in at a fairly eye-watering €2,763.96 – well over 10 per cent up on the 2024 figure.
We reckon the cost of an Irish Christmas in 2025 will be about €700 more than it was five years ago.
But even in these hard and expensive times, there may be ways to make savings without draining the colour out of the season to be jolly. There are certainly things that may seem alluring to the overstretched that should, nevertheless, almost certainly be avoided.
RM Block
“With Christmas fast approaching, many households are beginning to feel the financial pressure of festive spending,” says Nick Charalambous, the managing director at Alpha Wealth. “For those who haven’t planned or saved in advance, it can quickly become overwhelming,” he continues – with a degree of understatement.
[ Christmas budgeting: Start today and save €700 for the big dayOpens in new window ]
With all the pressure that people place on themselves, it is entirely understandable if some people look at ways in which to get what they need without having to pay for it all in one go.
One somewhat new trend is the “Buy Now Pay Later” notion that has been warmly embraced by many retailers in recent years.
‘Remember that Christmas is one day, not a month. The pressure to create the “perfect” day can lead to crazy overspending’
— Nick Charalambous, Alpha Wealth
Charalambous accepts that BNPL is one of the fastest-growing ways to shop, allowing people to spread payments over a few instalments and often marketed as interest-free and hassle-free.
“At first glance, it sounds ideal,” he tells Pricewatch. There is, we are promised, “flexibility, no interest, and the appeal of getting what you want straight away”.
But while BNPL can provide short-term financial gain, he warns that ”it can also create long-term pressure. Because payments are split up, it can make purchases ‘feel’ smaller, so that €50 now instead of €200 upfront encourages people to spend more than they originally intended. This psychological trick is especially powerful at Christmas, when emotions run high and marketing messages are everywhere.”
Charalambous highlights another issue that people would also do well to remember.
“Many BNPL providers don’t apply the same affordability checks as traditional lenders. This means it’s easy to end up juggling multiple repayment plans across different apps, each with separate due dates. Miss even one instalment and you could face late fees or in some cases damage your credit score. The bigger risk is that BNPL doesn’t feel like debt, yet it still reduces your available income in the months ahead, creating a rolling cycle of repayments that can last long beyond Christmas.“
He is not entirely against such schemes, he stresses. “Used intentionally, for example, for a planned purchase that fits comfortably within your budget, it can be a useful tool for managing cashflow. But the key word is ‘planned’. Treating it as ‘free money’ can quickly backfire.”
Charalambous urges anyone considering BNPL this Christmas to “use it only for essentials or items you could comfortably afford upfront, set reminders for each instalment, and avoid using multiple providers at once”.
[ The days before Christmas are dangerous for overspending. Here’s how to avoid itOpens in new window ]
While we had his attention, we also asked Charalambous whether he had any other tips that might help us to stay financially grounded this festive season.
He suggests the key is “to plan – and stick to it. Christmas spending has a way of snowballing, with small extras adding up faster than expected. Start by writing an itemised list of what you truly need; gifts, food, travel, nights out, and set a realistic budget to each category. It sounds simple, but it’s the most effective defence against impulse spending.”
He says anyone who is tempted to make an impulse purchase should “try following the 72-hour rule”.
And what is that?
“Wait three days before buying to see if you still really want or need the item. Often, the initial urge fades and if it doesn’t, at least you’ll know it’s a conscious choice rather than a reaction to clever marketing. Giving yourself that pause can make a big difference to your overall spending habits.“
He also encourages people on nights out and at the kinds of social events that are commonplace at this time of year to use cash rather than cards to help watch their own spending. “The physical act of paying helps you stay conscious of what you’re spending. If you prefer not to carry cash, set a clear digital limit for your evening and stick to it, and avoid putting costs on a credit card unless you can clear the balance in full next month.”
Sage advice, given that such cards charge interest rates of about 20 per cent, and excessive spending on them can start a cycle of debt that can be almost impossible to escape from.
“Most importantly, remember that Christmas is one day, not a month. The pressure to create the ‘perfect’ day can lead to crazy overspending,” he says. “But what people really remember are the moments, not the money spent.”
‘Make sure your savings are working for you. Too many people leave money sitting in low-interest accounts’
— Nick Charalambous, Alpha Wealth
Widening the lens a little, he says that with the new year approaching – and it will be upon us before you know it - “is a great time to reset your finances and take stock. Think of your financial plan as a roadmap, understanding what’s coming in, what’s going out, and where you can improve. Start by tracking your income and expenses for a month. Include everything; groceries, bills, subscriptions.”
He says if people feel they are likely to overspend this Christmas, and are already in a negative position, they should “focus first on paying down high-interest debt before building savings. The faster you reduce debt, the sooner you regain financial control. Then, think about separating your money into three ‘pots’; short-term [covering the next three years], medium-term [between three and 15 years] and long-term [retirement years]. Match your savings or investments to each timeframe, keeping short-term funds safe in deposits, and longer-term money in vehicles that can grow.”
He concludes his words of financial wisdom by reminding people to “make sure your savings are working for you. Too many people leave money sitting in low-interest accounts. Explore online banks like Raisin, Trade Republic, or Bunq, which offer rates above 2 per cent, even on demand. Also by availing of term deposits over 6, 12 or 24 months, you can get enhanced rates.”
He says “one really big cost-saving is to ensure you review your mortgage rate. By checking first with your current provider their lowest rates, and in some cases refixing, [it] can save you thousands of euros. If that fails, possibly switching your mortgage could make a massive difference.”
Finally, he suggests, “consider boosting your pension contributions. Even small increases can have a big impact over time, especially with compound growth, where your interest earns more interest. Plus, pension contributions attract up to 40 per cent tax relief, making them one of the most efficient ways to save. A little planning and awareness can go a long way – [as will] taking small steps toward a more structured financial plan, with the goal to enter 2026 with less financial stress, less debt, and more financial confidence.”
