The cost of living crisis has made holiday celebrations more challenging for many families, as rising expenses strain budgets. Christmas, a time of joy and generosity, can bring added financial pressure, especially for those from diverse backgrounds with varying income levels.
However, affordable celebrations are possible by focusing on thoughtful alternatives rather than expensive traditions. Simple, meaningful experiences, shared family moments, and smart budgeting can ensure the festive spirit is preserved without compromising financial stability.
Monica Kaur, Regional Partnership Manager for East London at the Money and Pension Service (MaPS), shared practical advice for South Asian families aiming to celebrate Christmas within their budgets: “Open communication is vital when it comes to budgeting, especially in the Asian community, where discussing money can often feel shameful or embarrassing. Involving family members—partners and children alike—in the budgeting process through 'loud budgeting' can help families openly address financial priorities and focus on mindful spending instead of unnecessary expenses.”
She also highlighted the importance of re-evaluating traditions, such as prioritising experiences over material gifts. “For instance, during the cost of living crisis, I opted for a family meal over exchanging gifts, and many of my relatives appreciated the honesty and the conversation that came with it,” she explained. Additionally, shared responsibilities like group cooking with friends or family can cut costs and reduce stress.
Monica emphasised incorporating credit card spending into budgets and starting savings earlier, preferably in spring or summer, to avoid last-minute expenses. She said, “Tools like Moneyhelper.org.uk’s Budget Planner can be invaluable for tracking spending and saving month-by-month. While savings might not always be possible, early planning and creating savings pots can significantly alleviate financial pressure during the festive season.”
Monica shared advice on affordable gifting, saying, “In Asian communities, there’s often pressure to give designer gifts. It’s important to have open conversations about these expectations and question if such gifts are necessary. Shopping smart during sales like Black Friday or outlet discounts can make designer items more affordable. Alternatively, consider smaller, personal, or creative gifts like vouchers, cinema tickets, or experiences such as a picnic in the park or visiting a free museum.”
She added, “These thoughtful alternatives can ease financial strain while maintaining the spirit of giving. Many people now create personalised gift vouchers for shared experiences, like a summer day out, which are budget-friendly, memorable, and focus on quality time rather than expensive purchases.”
