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Christmas is one of the most magical times of the year - lights, laughter, family traditions, and the joy of giving.
But for many families across the UK, it’s also one of the most financially stressful seasons.
Rising prices, social pressure to “keep up,” and the long list of gifts, activities, and extras can leave parents stretched. Even children can feel the tension, picking up on adult worries or noticing changes to routines and plans.
That’s why December is one of the most important times of the year to talk openly, honestly, and age-appropriately with children about money, value, and expectations. Not to dampen the excitement - but to make space for understanding.
At ThinkPieces, we believe these conversations don’t need to be heavy or complicated. With the right approach, they can help children build confidence, compassion, and a healthy relationship with spending.
Why Christmas Makes Money Conversations Harder (But More Important)
There are a few reasons why Christmas money habits matter:
1. Children are surrounded by marketing
Adverts, school friends, online influencers, toy catalogues - December brings a tidal wave of messages telling children what they “should” want.
Discussing needs vs wants, affordability, and budgeting helps them develop resilience against this pressure.
2. Families make more financial decisions in December
From gifts to food to travel, children have more opportunities to see how money shapes choices. That visibility is valuable - if we include them in the right way.
3. Many adults feel pressure to overspend
Research from the Financial Times’ Financial Literacy & Inclusion Campaign shows that parents often feel guilt around gift-giving, especially during economic uncertainty. Talking about money openly helps children understand that love isn’t measured in presents - and that thoughtful, intentional spending is a strength.
Start With a Family Budget - And Let Children In On It
Children don’t need to see every number, but they do benefit from being part of simple conversations like:
“We’re choosing between X and Y this year — which one do you think we should prioritise?”
“We’ve set a budget for presents. Let’s plan together.”
This turns budgeting into teamwork, not restriction.
A simple exercise:
Ask your child to help allocate a Christmas budget envelope into:
· Presents
· Family activities
· Food
· Travel
· Giving / charity
This process shows children that budgeting isn’t about sacrifice - it’s about choices and values.
Talk About Advertising and Expectations
December is the perfect moment to introduce children to the idea that adverts are designed to persuade them.
Try questions like:
“What do you think the advert wants you to feel?”
“Do you like the toy, or do you like the way they showed it?”
“Is this a want or a need?”
It builds media literacy and helps children navigate Christmas excitement without feeling entitled or disappointed.
The Real Cost of Christmas: Time, Thought and Togetherness
Not all gifts cost money - and children benefit from seeing the value in the emotional side of giving.
Some alternatives you can discuss:
· Handmade gifts
· Coupons for experiences (movie night, baking day, board game tournament)
· Acts of kindness
· Charity donations chosen by the child
This teaches children that value isn’t always financial - and that meaningful giving comes in many forms.
Introduce the “Christmas Money Pot”
Just like ThinkPieces’ Spend, Save, Give jars, create a seasonal version:
· Spend - for gifts or treats
· Save - for something after Christmas (January is a great time for goals!)
· Give - charity, donations, or kindness projects
This reinforces positive money habits in a way that feels festive and empowering.
For Teachers: Bring Christmas Into PSHE or Maths
Schools can use December to reinforce essential financial concepts without adding pressure:
Classroom ideas:
· Budget the Christmas Party: Pupils choose snacks and decorations within a set spending limit.
· Gift of Kindness Project: No money involved — pupils create plans for acts of generosity.
· Cost Comparison Challenge: Compare prices from different shops or websites.
· Inflation Discussion: Explore why Christmas feels more expensive each year.
These activities turn December into a practical, memorable learning moment.
ThinkPieces in Action
Our approach always centres on confidence-building through play, creativity, and conversation.
This blog links closely with:
· Needs vs Wants: A Simple Lesson Every Child Should Learn
· Fun Games to Teach Children About Money at Home
· The Psychology of Saving: Why Early Habits Last a Lifetime
And our ThinkPieces jigsaw puzzles continue to model this idea beautifully - breaking down big ideas into small, connected pieces of understanding.
A Piece to Think About
Christmas is full of excitement, but it’s also full of decisions. Every choice - what to buy, what to save, what to give - is a chance for children to explore values, empathy, and financial confidence.
Money doesn’t need to be hidden away this season.
It can be a way for families to grow closer, share openly, and empower children to make thoughtful choices.
Because when we help children understand the hidden parts of Christmas spending - pressure, priority, value, generosity - we’re giving them something far more meaningful than a present.
We’re giving them a skill they’ll use for life.
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