“Managing money during the festive season can be challenging, but careful planning could make it possible to enjoy the holidays without getting into debt.” says Jonathan Watts Lay, Director, WEALTH at work.

HR leaders play a crucial role in supporting employees’ financial wellbeing - especially during high-spend periods like during the festivities. To help, WEALTH at work has outlined practical tips to navigate financial pressures to share with the workforce.

1. Set a budget – Individuals should review last December’s bank statements to understand actual spend, then create budget which is manageable for their current financial situation. A budget should include all expenses, such as gifts, decorations, food, entertainment, clothing, nights out, travel and increased utility bills from spending more time at home. When reviewing the budget, certain spending areas may be identified that can be reduced, helping people stay on track more easily. Using free budgeting apps can also help individuals track spending on groceries, eating out, entertainment etc to help maintain the budget.

2. Use online shopping hacks – Price comparison tools can help find the best deals on gifts. Platforms such as Google shopping allow users to track, filter and compare prices. CamelCamelCamel tracks the price of Amazon products and other browser extensions can search for discount codes during online checkout.

3. Check if a price is really discounted – There are often many ‘sales’ during the festive period but it’s important to spot if something really is discounted or a sales tactic. Consider using some of the shopping hacks above such as using price-tracking tools or websites to check if it really is a deal. Some stores raise the ‘original’ price before applying a discount to make it look bigger. Look at other retailers selling the same item. If the price difference is minimal, the discount might be exaggerated.

4. Consider creative ways to reduce costs – It’s helpful to agree on spending limits with family and friends and consider alternative gift options like homemade gifts or experiences. These can be more cost-effective and personal. People should consider buying gifts in the winter sales for those who aren’t being seen until after the festive season. This can help spread the cost and make budgeting more manageable.

5. Maximise workplace benefits – Take advantage of any employee discount schemes offered by the workplace, offering discounts on for example, groceries, dining and gift purchases. By maximising workplace offerings people can reduce their regular spending without drastically changing their lifestyle.

6. Beware of energy costs – Energy bills can rocket over the winter months due to the increased use of cooking appliances, heating, washing and technology. Small changes such as turning off lights when they aren’t needed, washing clothes at 30 degrees or lower, making sure the dishwasher is only used when full and reducing the number of times the kettle is boiled, can positively impact energy costs.

7. Understand borrowing methods – Borrowing to pay for the upcoming festivities should only ever be a last resort, but credit cards are useful for the protection they give for purchases over £100. For those considering using a credit card, choose cards with 0% finance or cashback. Anyone with existing credit card debt, may want to consider a balance transfer to a lower interest card to save on interest payments and pay off debt as quickly as possible. It’s important to be wary of the ‘buy now and pay later’ deals and understand the terms and interest charges if repayment isn’t on time.

8. Spread costs over paydays – Those who have a credit card and pay it monthly could consider using it to spread the festive cost between two pay days. For example, if a credit card statement date runs from 1 December to 1 January, anything spent on the card in December will be due for repayment in January. All credit cards have different statements and payment dates, so anyone planning to spread costs this way should check these dates.

9. Budget now for 2026 – Understanding and reviewing regular spending habits now can ensure financial pressures are reduced in the year ahead. This could look like reducing the frequency of eating out, bringing lunch to work from home or switching to more cost-effective supermarkets. When it comes to managing bills in the new year, where possible, people could consider slightly overpaying on energy bills creating a small excess fund which will benefits them in winter, meaning less surprises and financial worry.

10. Automate savings – Consider setting up automatic savings transfers, that round up purchases and deposit the spare change into savings. For example, if someone spends £4.20, the bank rounds it up to £5, and 80p goes into savings. Two transactions like this per day could help save £584 over a year*.Another practical approach is to set up a standing order to transfer a fixed amount into savings on payday. This way, a person can save before even noticing the money is gone, helping them stay consistent with their savings goals. Many employers also offer payroll-deducted savings schemes into an ISA, so its important employees understand how it works and the benefits.

Jonathan Watts-Lay, Director, WEALTH at work comments; “Whilst the festive season can be an exciting time, it can also be a stressful time for those who are worried about their finances.”

“Proactive employers are actively working to remove the stigma around money worries and encourage their employees to not suffer in silence and access the support available. Key to this is offering financial education and guidance to help employees understand their finances including ways to manage a budget, make savings and manage debt. As well as this, providing access to workplace savings such as a Workplace ISA can help to build financial resilience.”

He adds: “Employees who are struggling should be aware that they can contact free services such as MoneyHelper, Citizens Advice or National Debtline.”

*80p x 2 = £1.60

£1.60 x 365 (Days in the year) = £584