Talking to your kids about money this Christmas

The festive season is almost upon us and many parents are feeling the weight of making the celebrations special with a limited budget.

Understandably, this burden can feel even heavier for single parents.

Our 2024 ‘cost of Christmas’ survey found that:

• More than 50% of single parents find it harder to afford things at Christmas.
• Nearly a quarter of single dads spend between £300 and £400 on Christmas.
• A third of single mums spend between £100 and £200.
• 34% of single parents said they’ve had to skip a bill to cover Christmas costs.
• 52% of single parents with three or more children say Christmas is harder to afford because they're on their own.

Relying on credit

Because they expect to spend loads of money, many parents turn to credit to pay for Christmas.

One in ten (10%) say they rely on credit to cover costs, with single dads taking longer to repay their debts – up to or longer than six months.

Why it's important to talk about money

While single parents often struggle this time of year, two-thirds 66% say they’ve never spoken to their kids about their money worries. 

Talking to your kids about money can feel daunting. But it can help them understand why you might say no when they’ve asked for something you can’t afford, and prevent disappointment if their Christmas doesn’t end up looking quite like they pictured.

How to start the conversation

Starting a conversation about money doesn’t have to be awkward. Here are some tips to make it easier:

Choose the right moment

Find a relaxed time, maybe during a family meal or while enjoying a festive movie. This way, the discussion feels more natural and less like a lecture.

Be honest, but age-appropriate

Share your experiences but tailor your message to their age. Younger children might grasp simpler concepts, while teens can handle more detailed discussions about budgeting and saving.

Involve them in the decisions

Discuss your own spending plans for Christmas. You might say something like:

“This year, I’m looking to spend a bit less on presents so we can enjoy a nice family dinner together. What do you think we should prioritise?”

Involving them in the decision-making can make them feel valued and part of the process.

Be supportive

Invite your kids to ask questions. This shows them that it’s okay to be curious about finances and helps clarify any misconceptions they might have.

It’s important to validate their feelings and tell them it’s normal if they feel a bit sad. But reassure them that they’ve still got plenty of fun to look forward to.

Christmas on a budget

Celebrating the festive season doesn’t have to mean spending money you don’t have.

We’ve put together some ways you can enjoy the cheer without the financial fear, like by shopping from charity shops, swapping items instead of buying presents, or doing secret Santa.

Opting for refurbished gadgets is another great way to snap up thoughtful gifts that don’t cost an arm and a leg. Or have a go at making your own festive cookie or cake jar mixes  to offer to your family and friends.

To save on food, find out where to bag the cheapest ingredients on offer for your Christmas dinner.