How much should I spend on Christmas presents?

When it comes to Christmas, there are so many costs to think about - so, how much is too much to spend on presents?

By Joe Hickman

Created on: 01/12/2021

Updated: 28/08/2023

Reading time: 3 mins

Please note: this blog was published in December 2021 and its content is based on what was correct at the time of writing. As a result, some of the facts and opinions may no longer be current/relevant.

At this time of year, it’s normal to start wondering – how much does the average family spend on Christmas presents? Well, if you’re intrigued, then this article is just for you.

However, before diving too much into the specifics of presents, it may be worth reading a quick summary of how much Christmas costs the average family.

That way you can have a better understanding of how much, or how little, your Christmas costs you compared to others – and whether you’re guilty of spoiling your loved ones.

We know, we know.

How many Christmas films and stories have told us that this holiday isn't all about spending money and having presents?

But do we believe that this season doesn’t have to be used to justify frivolous spending – especially with many of us now facing rising costs – and there’s no shame in spending the bare minimum or going without presents entirely.

The most important spending this season is the time spent with your loved ones.

How much does the average family spend on Christmas?

According to the latest figures from the Bank of England, in the UK, the average family spends £3,240 in December – that’s 29% more than any other month of the year.¹

But what about the singletons or those that aren't the ‘average’ family? Well, it turns out that according to a YouGov survey from 2019, Brits typically spend a total of £1,116 during the festive period — with a whopping £381.60 of that being spent just on presents.²

But celebrating Christmas isn’t always about gifts. In fact, people spend significantly more money on food and alcohol during this time, increasing by 20% and 38% respectively.¹

Compared to the average person’s spending over the rest of the year, these two categories have the biggest individual increases. And of course, alcohol is often bought as a present which could mean that this cost straddles the categories of ‘presents’ and ‘booze’.

You may be interested to know that the UK spent 40% more on Christmas than other European countries in 2020 — with 16% of us not being entirely sure of how much money we actually spent.³

Needless to say, we love feeling festive and celebrating that feeling with our purses and wallets!

But one thing to bear in mind is that due to factors such as the cost of living crisis (caused by factors such as big jumps in gas and energy bills, and inflation hitting a 40-year high in 2022⁴), you could be expecting to pay considerably more this year if you don't want to cut back on your festivities.

However, 60% of Brits with children under 10 have already said they are planning to spend less this festive season due to the increased cost of living.⁵

Sticking to your Christmas budget

Normally, at Christmas, the only thing you want to be sticky is your sticky toffee pudding - but keeping to your budget can feel almost as good. So, what are some things that you could do to set a realistic budget and try to make sure you stick to it? Here are some ideas:

Plan ahead – you know Christmas is coming; it happens on the 25thof December every year without fail. So, why not prepare for it? Start saving bits here and there, buy presents throughout the year, and try and get ahead of the December rush.
Look for deals – if you’re buying presents throughout the year then you can keep your eyes peeled for deals, whether that’s discounted prices, buy one get one free offers, or even free shipping! Being smart with your purchases could get you the same things for less.
Track your money – overspending is a lot easier to do when you don’t know how much you’ve already spent. Keeping tabs on your money can help you realise when you’re coming close to your budget and enable you to make plans.

Looking at alternative gifts

One of the biggest issues with presents is the clutter they can create. It can feel like the whole period between Boxing Day and New Year’s Eve is spent trying to find a place for all the new stuff you and your little ones have.

We’re not always the best gift-givers either, with 15% of people receiving presents they don’t like, 10% of us returning gifts, and 10% not even being able to remember what presents we received!³

And what about the environmental impact of this?

Here are some statistics about the environmental impact of Christmas that might shock you:

DEFRA (Department for Environment, Food and Rural Affairs) estimates that around 50,000 trees are cut down each year to make enough paper for us to wrap our gifts⁶
The UK sends and receives more than 1 billion Christmas cards each year – and because each of these weigh an average of 30g, they produce approx. 30,000 tonnes of waste annually⁷
Britons receive a total of 81 million unwanted Christmas gifts each year, and 1 in 10 of these are expected to end up in landfill⁸

If you want to break this trend and are looking for ways to save money and/or reduce the amount of waste or excess you have, then it may be worth looking at alternative gifts.

Here are a few suggestions:

Ask people what they need

There are many expensive events in a person’s life – going to university, buying a property or having a child are just a few examples. And with the cost of living creeping up faster than wages for many of us, your loved ones will probably appreciate you gifting them something that will help them out with these expenses.

For example, if your friend has recently moved out for the first time, it’s worth asking them if there’s anything they need for their home that you could get them as a present – such as a cutlery set or bedding. Or if they’re expecting a baby, you could even offer to contribute to the cost of pricey items that they’ll need to buy, such as a cot or pram.

So, although it may ruin the surprise element (and let’s face it, cutlery is nowhere near as exciting as a new pair of trainers), giving a gift that’s needed will bring far more value, and it won’t sit gathering dust in a few months when something else is in fashion.

Buy second-hand

We mentioned earlier that 1 in 10 gifts are likely to end up landfill each year from the festive season alone⁴, but just how many presents end up being unwanted in the first place? According to a Finder survey of over 2,000 people in 2021⁵, it’s estimated that over 21 million of us Brits receive at least one gift we don’t want each Christmas.

So, just think of how many unwanted gifts are also generated from other occasions that could be going to waste – such as birthdays and weddings, or when you leave a job and your co-workers all chip in to get you a little something to say goodbye.

Fortunately, these presents don’t always get thrown in the bin without a second thought. The Finder survey also revealed that 22.50% of people who receive presents they dislike regift them, 21.87% donate them, and 11.31% sell them. With that in mind, charity shops, markets and car boot sales can all be great places to find gifts that haven’t been used – and sometimes for a cheaper price too, which is ideal if you’re on a tight budget this year.

And if you’d rather do your shopping online, then try places like Facebook Marketplace, eBay and Depop to see what treasures you could snap up.

Gift experiences

If you want a waste-free Christmas gift for a loved one, remember that you don’t necessarily need to give them a physical item. Why not get a little creative and instead of buying them something that they will like and appreciate (but may not necessarily need) think about giving them an experience that you can enjoy together – such as a spa day, a meal at a fancy restaurant, a theatre trip, or if you want to pull out all the stops, an overnight stay or a weekend break somewhere.

Of course, going down this route does come with the added benefit that you’ll also get to enjoy their present yourself, which is always nice – but don’t let that sway your decision of what to get them as this should be something that they’ll actually enjoy!

However, gifting experiences could also help to reduce the amount of waste that will end up in landfill this Christmas – just think of all the wrapping and packaging you could avoid throwing in the bin. Not only that, but this gift could end up being far more meaningful as you’ll remember the experience you shared for many years to come.

We think this famous quote from Jean Chatzky (an American finance journalist) sums this up rather nicely: “Buy experiences, not things. Spending on experiences makes people happier than spending on things. Things get broken and go out of style. Experiences get better every time you talk about them.”

So, if you want to avoid wasteful gifting this Christmas, it doesn’t need to be complicated. There are plenty of options for zero waste gifts that don’t break the bank and can be more meaningful than gifting physical presents that will be broken or forgotten about by next Christmas.

References:

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