With Christmas just around the corner, people are working out their finances and how much they can spend on presents for loved ones.
These are challenging times, as the UK tries to recover from the economic downturn of recent years, but luckily, you don’t need expensive gifts to show family and friends that you love them.
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If you’ve heard the old saying, “It’s the thought that counts,” this is absolutely true when it comes to giving at Christmas. Being the season of goodwill means recipients will appreciate the sentiment that has gone into each gift, rather than how much it cost.
Managing Christmas gifts on a budget is possible with a little thought, as there are different ways to be mindful of your spending over the festive period, while still finding the perfect gift.
Average spend on Christmas presents
The average spend on Christmas gifts in the UK is around £300 per person, according to a survey by YouGov. The demographic spending the most are parents with children aged seven to 12 years, who pay as much as £472.
Of course, this isn’t the only festive expense, as the average household spends an extra £100 on alcohol over the Christmas period, £100 on social occasions and £50 on fuel to visit loved ones over the holiday.
In the run-up to Christmas 2023, UK consumers spent a massive £13.7 billion on food shopping alone – an increase of 7% on 2022. We weren’t necessarily buying more; this more reflected a general increase in prices.
The average household spent £477 on festive food and this is expected to increase by 4.3% this year, with one traditional Christmas dinner costing an estimated £32 per person, according to research by Statista.
It all adds up, and it’s easy to see why many of us will be looking for Christmas presents on a budget as we prepare for the most expensive season of the year.
How do people pay for Christmas?
Some Brits say they cut back on spending at other times to afford Christmas, with 41% creating a Christmas savings pot early in the year and putting in whatever they can afford each week or month. Almost a quarter (23%) of people spread the cost of festive spending, either by buying goods on HP or by purchasing a few items each month and storing them away.
A further 18% of Brits use credit cards or loans to pay for their festive fun. Others buy Christmas gifts, decorations and cards out-of-season in the January sales and store them away until they’re needed.
Charity shops are also good places to buy gifts, as many of them store festive items during the year, with special displays during December offering new items such as toiletries in gift baskets.
Other thrifty shoppers look out for deals such as “buy one, get one free”, discounted prices and store card special offers.
Buying the best Christmas gifts on a budget
The secret to successful Christmas shopping is to plan ahead by working out your budget and having a clear understanding of what you can afford to spend. Consider how much of your money will go towards regular expenditure, such as bills, and then add Christmas food and drink, decorations and social events. Then you’ll know exactly how much you have left to spend on presents.
It’s a big mistake to leave everything until the last minute and then rush round the shops, grabbing the first things you see, as this is a surefire way to overspend. Never go out into the crowds without a clear budget plan, as you’ll get swept up in the festive throng. Agree on your price limit per person for gifts and stick to it.
Some people tell family members the upper limit of their spending, eliminating the risk of receiving a hugely expensive present from someone which hasn’t been reciprocated. It’s better to be honest if you’re struggling, as you’re probably not on your own, so tell family members you’re cutting back. This reduces the pressure, as no-one will expect expensive presents.
Homemade Christmas gift ideas
Besides saving you money, homemade gifts can have many benefits, especially if you have kids, as it can be turned into a fun family activity. A therapeutic pastime during the stress of preparing for the festive season, making gifts means you can avoid the crowds and spend more family time at home.
Presents can be more personal and tailored to the recipient’s preferences, with the act of making the gift creating lasting memories and showing how much you care. Using eco-friendly natural materials and upcycling means you can also support sustainability.
Researching homemade crafts for Christmas gifts can produce many innovative ideas, but some staples include making festive wreaths using natural materials such as twigs, greenery, berries and ribbons. Scented candles are also easy to make, with soy wax being a popular choice, as it burns cleanly. You could bake mince pies, cakes, biscuits and other festive treats to show you care, or teach the kids to customise cork coasters by painting them.
There are many ways to provide Christmas gifts for family on a budget that will cost next to nothing to make.
Christmas money-saving ideas
Use recycled Christmas gift bags rather than buying wrapping paper every year. If you’re given gifts, open them carefully and save the bags to reuse the following year.
There’s no perfect number of Christmas presents to buy, but some people use the five-gift rule for children: something they need, something they want, something to wear, something to read and a surprise that they didn’t realise they wanted. It’s sensible to buy the same number of gifts for each child.
The true meaning of Christmas
Of course, it’s important to remember that Christmas is not just about giving gifts, sipping mulled wine and over indulging on turkey and all the other culinary treats.
A time to reflect on the significance of the birth of Jesus, Christmas emphasises themes of peace and goodwill to all. The greatest gifts of all are love and kindness and they cost nothing at all!
