Talking to friends and family about money this Christmas
Christmas is all-but here and it's an expensive time of year for everyone.
Whether you’re concerned about making Christmas special for your family, or nervous about the cost of social events, it can be useful to talk to your friends, family, and colleagues about money at this time of year.
Dawn Cummins, Regional Manager for the West-Midlands at the Money and Pensions Service (MaPS), shares a few tips on why this conversation is so important and how to go about it.
Why should you talk about money, especially at Christmas
Research from the Money and Pensions Service (MaPS) shows that there are real benefits to talking about money. Those who do were found to make better financial decisions and feel less stressed or anxious, and more in control.
However, new research from September shows that we feel more comfortable talking to our friends about sex, relationships and politics than about money problems.
We should be talking about money with our friends and family all year round to see the benefits – but even more so at Christmas, which is a particularly expensive time.
It’s important to be open with your friends and family about what you can and can’t afford to avoid a financial hangover in the New Year.
Stats from 2023 show that more than 1 in 4 in the West-Midlands planned to borrow money or use credit for Christmas.
Christmas cost-cutting conversations
One idea is to talk to your partner or family about what your priorities are over the festive season. Pantomimes, Christmas light shows, visits to Santa, Christmas Eve boxes, carol concerts, and work parties can all add up.
Figure out what your budget is and pick and choose the events you can afford. This way you can still enjoy the season without the worry of overspending.
How to have the money talk
Depending on the Christmas money topic and the person you want to talk to, there are a few different ways to have the chat.
If it’s a light subject, such as ‘do you fancy getting the turkey this year and I’ll get the desserts’, then just do it in the way you normally communicate – but do it as early as possible to make sure that everyone has time to get organised.
If it’s a subject you’re feeling nervous about, then it's a good idea to have a plan. Decide where and when to meet in advance, and practice the conversation out loud so you know what you want to say.
You’re probably not alone
You’re probably not the only one of your friends, family, or colleagues who is worried about spending too much money this Christmas.
Talking about money can make you feel less alone, and your peers may be grateful that you’ve brought up the conversation so they can air their thoughts and feelings too.
By taking the first step, you’re helping to not only support your budgeting but encouraging others to do the same.
Visit MoneyHelper.org.uk for more practical tips and guidance on how to talk about money, including some helpful conversation starters.
