The £1 a day challenge that can save you hundreds by next Christmas

People are being urged to try the £1 saving challenge to get ahead of next year's Christmas gift shopping panic.

Money Saving Experts (MSE), founded by finance journalist Martin Lewis, is a popular and free UK consumer finance website that provides information and resources to help people save money.

The aim of the £1 challenge is to put away a pound every day from 1 December until 30 November 2025, so that you can have a nice chunk of money to help with the costs of Christmas next year.

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A post on X, formerly Twitter, explains the scheme. They explained: "How you save your £1 doesn't really matter, whether it be a £1 in a tin, an online account, or anywhere else that suits you.

"Also I just want to say, you don't have to save £1 a day, do what is right for you.

"Any amount you manage to save is a help towards Christmas next year."

Many families feel the pressure of the Christmas season, feeling the need to spend lots of money on gifts for loved ones. But there are many great ways of cutting costs.

Making hand-made gifts and shopping second hand either in charity shops or on reselling sites, such as Depop or Vinted, is a great way of not only saving money but also repurposing items and giving things a second home.

Another way of reducing your spend over the Christmas period is to set up a Secret Santa between you and your family, so that each person is only having to buy one gift.

And whatever you decide to do with your Christmas shopping, putting a small amount of money aside during the year can really help ease the burden of the expensive season when it comes around next year.