Average household to spend £787 this Christmas: 10 budgeting tips to avoid a festive financial hangover

Christmas is coming and so is the cost.

New research from Censuswide for the all-in-one banking app thinkmoney, shows the average UK household will spend £787 this festive season, £87 more than last year.

And it’s not just the money that’s piling up, the pressure is too.

Almost a third of us (30%) say we’d cancel or delay Christmas if we could. That rises to 37% of 35-44 year olds, who also face the highest average spend at £1,115.

How are we paying for Christmas?

• 25% will use credit cards
• 14% will turn to buy now, pay later (BNPL)
• 7% will borrow from family or friends
• 51% will rely on regular income
• 42% plan to use savings

And the financial hangover is expected to last well into the new year:

• Only 22% expect to have cleared their festive bills by the end of December
• 18% will still be paying off Christmas into spring or summer

But there’s good news, the earlier you start planning, the easier it is to avoid a debt-filled December.

In fact, over a quarter of us (26%) begin budgeting for Christmas by September or earlier.

If you haven’t started yet, these then simple tips can help ease the pressure.

Ten budgeting tips to help ease the cost of Christmas

Make a master list - the earlier the better

Write down everyone you plan to buy presents for, including friends, family, Secret Santas, teachers and more. Add gift ideas and realistic budgets.

It helps you stay organised, spot deals early and avoid last-minute panic buying.
And there’s nothing more satisfying than ticking off that list way in advance.

Spread the cost

Buying a few gifts each payday between now and Christmas helps manage cashflow and keeps spending under control. It also gives you more time to spot deals and discounts, instead of scrambling in December.

Talk about gifts early

Start the conversation with family and friends. Agree on a price cap, do a Secret Santa, or decide to just buy for the kids. It might feel awkward, but it saves everyone time, money and stress later on.

Take advantage of sales

Plan ahead for big discount days like Amazon Prime Big Deal Days on 7 and 8 October. But don’t forget to use price trackers and check deal histories to make sure you’re getting genuine bargains.

Be savvy with toy sales

If you’ve got lots of toys to buy, stay poised for sales. The Sainsbury’s toy sale is one to look out for, which starts on 22 October 2025.

But again, compare prices before jumping in, to ensure you’re really getting a deal.

Sign up for newsletters

Many retailers send their best discounts to subscribers first. Signing up for your favourite brand’s newsletters can mean early access to real savings. Consider setting up a separate email folder so your inbox doesn’t get swamped.

Max out on loyalty schemes

The likes of Nectar, Tesco Clubcard, Boots Advantage and Superdrug’s Beautycard, often run extra points events around Christmas, so take advantage. Combine them with cashback apps to stretch your budget further.

Don’t dismiss nearly-new bargains

You’d be amazed what people sell in excellent condition, especially in the run-up to Christmas. Check out the likes of eBay, Vinted, Facebook Marketplace and even local charities to snap up bargains. Just remember to check seller ratings and order early to avoid delivery delays.

Pick the little bits up now

Small things like wrapping paper, Sellotape, cards and stocking fillers all add up, leaving you with an extra big bill in December.  Pick up these bits now, especially if you spot value packs or multi-buys.

Watch delivery times

If you’re buying from abroad, especially trending items like Labubus toys or niche collectibles, give yourself plenty of time.

Starting early means avoiding express delivery charges, or worse, missing gifts that don’t arrive in time.

With a bit of planning, some savvy shopping and a few early conversations, you can keep the joy and shake off some financial stress.

For more festive financially planning tips, check out our blog on ‘are your finances ready for Christmas’.