Dosh dilemma: Joanne wants to know how she can cut back on Christmas without the guilt

Joanne’s in a situation lots of people will recognise - Christmas is expensive and this year she needs to rein things in.

She’s decided to only buy presents for the kids, but she’s anxious about breaking the news to her family, who she’s exchanged gifts with for years.

First Joanne, if it’s any consolation, you’re definitely not alone. Research from the all-in-one banking app thinkmoney shows nearly half of parents (46%) will prioritise their children’s Christmas experience over other areas of spending, saving an average £132 by cutting back on things like adult gifts.

And with costs rising, many people are expecting to spend more than last year anyway.

Figures from MyVoucherCodes suggest the average person plans to spend £377.98 on gifts, around £32 more than last Christmas.

So yes, money chats at Christmas can feel awkward, but they don’t have to be.

Here’s how to make it easier:

How to tell family and friends you’re cutting back

Be honest and straightforward

A simple, “I’m keeping Christmas spending very tight this year, so I won’t be doing adult gifts” is enough. Chances are, they’ll feel relieved, or even grateful.

Give a short explanation (but don’t over-justify)

Let them know you’re making a conscious effort to manage your budget. You don’t need to go into detail unless you want to.

Offer alternatives that still feel thoughtful

• Suggest a ‘no-gifts’ rule for adults, maybe even as a new tradition.
• Propose a Secret Santa with a small price limit. You’d be surprised what you can get for £5.
• Swap gifts for homemade treats, a shared coffee date, or a festive activity together.
• Suggest a group gift or charity donation in everyone’s name instead of individual presents.
• Tell them early so no one buys gifts you can’t reciprocate.

We hope this helps, Joanne, and we’re sure your family will understand.