Families are set to spend an average of £1,502 this Christmas, according to a new survey of 2,000 adults for Christmas savings club Park. The figure includes £693.80 on presents alone, with Christmas dinner adding £185.80 and sweets and treats costing £158.20. Alcohol, soft drinks, decorations and other extras are not included in the total.
Age differences in spending
The survey also revealed that age changes Christmas habits. Gen Z (aged 18 to 29) expect to spend considerably more, with an average of £2,274, compared to £870 for Baby Boomers (62 to 80). However, Gen Z also said they were the most worried about Christmas costs, with 80% sharing their anxiety, compared to 37% of Baby Boomers.
Despite the eye-watering sum, only 22% of those surveyed said they put money aside throughout the year to go towards the festive season.
Expert tips for saving
Sophie Graham, a personal finance expert at Sunny, recommends setting a realistic budget and breaking it down into presents, food, treats and extras, then putting a small amount aside each week to spread the cost. She also suggests agreeing on spending limits or a Secret Santa with family and friends, and picking up non-perishable food and treats gradually over the coming weeks.
Graham warns to be cautious about putting festive spending on credit cards or buy now, pay later, as the cost of Christmas can follow you well into the new year if you borrow more than you can comfortably repay.
Vix Leyton, consumer expert at thinkmoney, echoes this sentiment. She advises checking the real price of items like chocolates, drinks, cheese and party food across different shops rather than assuming your usual supermarket is giving you the best deal. She also warns not to let a three-for-two persuade you to buy three of something you only wanted one of.
Social media pressures
Leyton suggests auditing your list before shopping, asking people what they actually want, and agreeing on limits where you can. Splitting hosting or asking people to bring dishes can also help share the cost at Christmas, rather than one host bearing the brunt.
On why low-earning Gen Z are planning to spend more, Leyton notes that social media can make a perfectly good Christmas feel like falling behind. She recommends retraining the algorithm rather than upping your Christmas budget, and filling your feed with creators who talk about saving money and having a great Christmas without spending a fortune.
