Santa-approved budgeting: Gabriel Nussbaum’s guide to a smarter Christmas

Watch Santa-approved budgeting: Gabriel Nussbaum’s guide to a smarter Christmas - The Independent on Dailymotion

Transcript

00:00The average Brit spends £800 on Christmas, with over £300 of that going on credit cards that they're still paying off in July.

00:07Oh, ho ho ho, what do you want for Christmas?

00:10I'll take a car.

00:18Oh, and socks.

00:19Alright, well that is a lot of gifts.

00:21But did you know that almost half go unwanted, costing UK shoppers £700 million a year?

00:27Ah, no, I didn't actually.

00:31Well, here is what old Santa Claus has on his list to make sure that you shop wisely during this Christmas holiday.

00:37First, set a limit per person before doing the shopping.

00:41This way you will actually stick to a budget and won't go crazy and overspend.

00:45Next, try to put away half of any cash gift that you get.

00:49Also, try gift experiences instead of things.

00:52They'll probably forget about the iPad in a few years, but not a great day out with loved ones.

00:56And, where you can, buy next year's presents straight after Christmas.

01:01Especially decorations, they will be on a massive sale.

01:04Yeah, that wasn't the list I was expecting.

01:07You see, the thing is, January tends to be the hardest financial month.

01:11And coincidentally, it happens to come straight after Christmas.

01:14To be fair, that is a great list.

01:17Thanks, Santa.

01:18But wait, there is more.

01:19Let's think of a few clever ways that you can think ahead so you don't get caught out this year.

01:24If you're travelling abroad this holiday, you might want to get a card that doesn't charge you crazy fees.

01:29You could check out the Trading 212 travel card, which comes with a whole host of benefits.

01:34Also, you could ask your guests to bring food dishes instead of presents this year.

01:38I am aware that the biscuits and milk for Santa are getting a little bit expensive this year.

01:43Yeah, not to mention you only ever eat half the biscuits.

01:46Also, Christmas can be the perfect time of year to start having open and honest conversations with friends and family about the topic of money.

01:52Especially as things are getting tougher and tougher.

01:55And a word to the wise, do not start dipping into your emergency fund or your investments to cover gifts.

02:00That's not what those accounts are for and your friends and family would not want you to do that.

02:05Plus, instead of getting stuff, why not consider opening an investment account for a loved one instead?

02:10£100 a year, every year until they're 20 years old, would be £2,000 from you and £4,000 in interest if you've got average returns.

02:18Look, kids will forget 90% of the stuff that you buy them by the time it's February.

02:23Whereas with an ISA account, that will probably still be growing by the time they're 30 and I guarantee you they will thank you for it.

02:29Thanks Santa, I actually now think this might be the best Christmas ever.

02:32Oh and finally, here's a little present for you.