As December begins, Christmas is only a few short weeks away. But with the price of all goods up 3.2% since October 2023, many families will be counting each penny and tightening their budgets in nervous anticipation.
“Christmas is a financial struggle for many of us,” says Jason Higgs, the Senior Deals Strategist at Proxy Coupons, a website that specialises in offering discount codes, promo deals, and coupons. “However, if you set aside a little money each month leading up to Christmas, you’ll find the financial burden much easier to bear.”
So, how much should you set aside? And how much does the average household spend on gifts, decorations, and the all-important Christmas feast? Jason and the Proxy Coupons team have collated the data to answer all these questions and more.
Table 1: How Much Households Should Have Been Saving Each Month To Afford Christmas
| Savings Average Needed Per Month For The Average Household | ||
| 2022 | 2023 | 2024 |
| £80.55 | £88.27 | £87.65 |
In 2024, the average amount households should have saved each month to afford Christmas was £87.65. This is in comparison to £88.27 for 2023, a decrease of just under £1 per month.
Between 2022 and 2023, the amount households needed to save increased by £7.72, reflecting a steep rise in costs across the board. “It could be an encouraging sign that we’re not seeing another steep increase this year – in fact, we’ve seen a decrease, if only a small one,” says Jason.
Table 2: How Much UK Households Spent On Christmas On Average In 2022 And 2023, And Predicted Average Spend For 2024
| How Much The Average Household Spent On Christmas | ||
| 2022 | 2023 | 2024 |
| £966.60 | £1,059.20 | £1,051.82 |
The average UK household is predicted to spend £1,051.82 in total on Christmas in 2024. That includes spending on gifts (both items and wrapping), food and drink, and decorations. In 2023, that figure was £1,059.20, meaning expected costs have decreased by £7.38.
The average cost of Christmas in 2022 was £966.60. That means the total spending increased by almost £100 (£92.60) between 2022 and 2023.
Table 3: How Much UK Households Spent On Christmas Presents, On Average
| How Much Households Spent On Christmas Presents, On Average | ||
| 2022 | 2023 | 2024 |
| £621.00 | £728.00 | £680.00 |
On average, British households are predicted to spend £680 on gifts this year. This includes the cost of presents for family and friends for a whole household. In 2023, the average household spent £728 on gifts, £48 more than is predicted for Christmas 2024.
The average cost of gifts in 2022 was £621. That means the total cost of gifts increased by £107 between 2022 and 2023. Costs in 2024 are predicted to be £59 more than in 2022.
Jason Higgs, Senior Deals Strategist at Proxy Coupons, commented:
“One of the simplest ways families can save money this Christmas is by planning ahead and sticking to a realistic budget. Start by listing out all your expected holiday expenses—gifts, food, drink, decorations, travel—and assign a spending limit to each category. Then, get creative!
“Hunting for coupon codes online can help reduce what you spend by a surprising amount. Coupon and discount code websites can help you find discounts on everything from toys to tech gadgets. Many retailers also offer special sales or free shipping during the holiday season, so it pays to shop around and see what you can find.
“Another tip is to take advantage of cashback deals or reward points on credit cards or store accounts. If you save these up throughout the year, you can use them to great advantage around Christmas time. You can also save by looking for bundles or multi-item discounts, especially for kids’ toys or gift sets. And don’t overlook the value of pooling resources with family members for bigger-ticket items, like a group gift for grandparents.”
| Column | Description | Source |
| Christmas presentsaverage | Cost of Christmas presents for family and friends (assumes gifts spend covers a given household) | https://www.statista.com/statistics/246963/christmas-spending-in-the-us-during-november/https://www.worldremit.com/en/cost-of-christmashttps://creditunion.co.uk/average-uk-christmas-spending-2024-what-we-really-spend/ |
| Christmas food & drinkaverage | Cost of the main Christmas dinner (assumes enough food to feed a household) | https://www.worldremit.com/en/cost-of-christmashttps://www.pickyourownchristmastree.org.uk/Christmas-Dinner-Cost-Calculator.php |
| Decorationsaverage | Cost of Christmas trees, decorations, fairy lights, etc | https://www.worldremit.com/en/cost-of-christmas |
| Gift Wrappingaverage | Wrapping paper, gift tags and tape | https://nrf.com https://www.monygroup.com/application/files/4717/1518/3477/MSM_HMI_December_2023.pdf |
| Column | Description | Formula |
| Totals for Christmasaverage | For each country, the total average cost of the categories will be summed to produce an overall Christmas spend per household. | overall Christmas spend= Christmas presents+Christmas food&drinks+Decorations+Wrapping |
| Savingsaverageper month/household | The total annual spend will be divided by 12 to determine the average monthly savings required to comfortably meet the annual expense. | Savings=overall Christmas spend/12 months |