Yahoo Finance How to have the Christmas budget conversation with friends and family
The ‘silly’ season doesn't need to mean being 'silly' with your finances.
Aussies are set to spend 10.69 per cent more on Christmas this year, compared to 2022, according to global data from World Remit – which is one of the highest increases around the world.
But, while spending might be set to soar for some, the continued cost-of-living crunch means that, on the other end of the scale, many of us have budgets tighter than ever.
So, if you need to talk to your loved ones about spending less this year, here’s how to discuss a thriftier Christmas without starting a fight in the family Whatsapp chat.
1. Open up the dialogue early
The earlier you have the conversation about the holiday season budget, the better. That way you get things moving before people have started spending – and before the festive frenzy sets in.
Keep things neutral and practical. Suggest a collective discussion around ways to make things affordable for everyone. Acknowledge that everyone is in their own unique situation, and ensure people don’t feel singled out by the conversation.
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Have empathy and understanding for different people’s circumstances, and encourage the same with family members who might be hell-bent on keeping to the usual traditions no matter the cost.
2. Make sure everyone gets a say
Giving everyone a chance to have their say helps create fair and reasonable outcomes. Utilise poll functions in apps like Messenger and WhatsApp so people vote for different options and express their preferences without loaded language. For example, sharing a list of price limit options and asking each person to vote for what makes them most comfortable allows you to obtain group consensus quickly, easily, and neutrally.
3. Bring ideas for creative ways to spend less
If you’re proposing a more budget-friendly holiday celebration, come prepared with solutions.
Tried-and-tested cost-cutters include Secret Santa/Kris Kringle gifting, or setting a price limit for each person you’re buying for to lighten the load.
Where kids are involved, some Aussies report switching to only buying for each other’s children, and sticking to a Secret Santa model for the adults only.
And for food and drink, potluck dinners and bring-a-bottle arrangements can help minimise expenses. Everyone prepares one sharable dish and brings it along for everyone to enjoy, along with a liquid contribution.
4. Find ways to share costs fairly
The festive season can be expensive for everyone, but some costs fall entirely to one person or household if they’re hosting the main event. Have a conversation about all chipping in and paying a fair share. It can help take the pressure off and make a large expense much more manageable.
To avoid conflict when cost sharing, keep on top of who owes who – and pay up when you’re asked! Research from Finder revealed that one in four Aussies were owed money by a friend, and shared gifts were one of the top three debts that go unpaid.
There are apps that can help you divvy up costs and avoid conflict, too. KttiPay, a new payment-sharing app, is making it easier for groups and families to split costs by each contributing to a shared “kitty”.
“The old system of paying money into a shared kitty worked well for our parents and grandparents, and now we’re making it work for us,” KttiPay CEO and founder Iain Salteri said.
Alternatively, Splitwise can help manage instances where multiple people have paid for multiple things and you need to work out who owes who.
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