Christmas is a time for joy, celebration, and giving—but it can also be a time for overspending if you’re not careful. In part two of our Christmas money series, we’ll break down the three biggest mistakes people make during the holiday season and how you can avoid falling into these traps. If you want to keep your Christmas spending in check, read on!

1. Using Credit to Pay for Christmas

The biggest mistake? Relying on credit or buy now, pay later services to cover your holiday spending. Sure, it feels great to tap, tap, tap your way through the shops, but what’s the impact? You’ll still be paying for Christmas by the time Easter rolls around!

What happens when you rely on credit:

  • You start the new year in debt.
  • You’re stuck paying off old purchases instead of planning for future goals.

Solution: Pay with cash. If you don’t have it, don’t spend it! Keep your holiday spending within what you can afford, so you start the new year on a clean slate, debt-free.

2. The “Transfer Olympics”—Overspending with Transfers

This one’s sneaky. People often underpromise and then overdeliver on their Christmas spending. They start with good intentions—”I won’t spend much this year”—but then the transfer game begins. A little here, a little there: “$50 for a gift,” “$250 for dinner,” “$300 for the Christmas party.” Before you know it, you’ve transferred more than you ever planned and drained your savings.

The result:

  • You spend way more than you expected.
  • Your savings disappear as you keep transferring from one account to another.

Solution: Set a realistic budget and stick to it. Be generous enough in your budget to cover everything you want to do, but once you hit your limit, stop. No more transfers. Keep your savings intact.

3. Family Gatherings: The Hidden Money Trap

We all love family gatherings, and Christmas is the perfect time to come together. But the cost of attending multiple events adds up fast, and before you know it, you’ve spent a fortune on each get-together. This is one of the biggest money traps people fall into.

The problem:

  • You feel obligated to attend every single event.
  • You end up spending bucketloads of cash on food, drinks, and travel for each family gathering.

Solution: Be selective. You don’t have to go to every event. Say “no” to some and enjoy the ones you do attend even more. Practise saying no—both to your partner’s family and your own. This way, you can have a great time without blowing your budget on endless gatherings.

Final Thoughts: Enjoy Christmas Without the Overspending

Christmas is about celebrating with loved ones, not stressing over your bank balance. Avoid these three common mistakes by paying cash, sticking to your budget, and being selective with your family events. You’ll still have an amazing holiday, but without the financial hangover!