Christmas spending to rise this year: How can I keep costs down?

Christmas is just around the corner, but so is the bill. 

So how can you make sure you’re not spending more than you can afford and storing up financial problems for 2026?

Christmas shoppers cutting back to save money

Many of us are already thinking of spending less on other things to free up cash for the festive season.

For example, a study by MyVoucherCodes found that more than one in three (36%) would go out less over the next few weeks.

And a similar number (34%) plan to buy fewer clothes.

Meanwhile, over a quarter (27%) plan to save money by skipping a Christmas getaway.

Christmas spending tipped to rise this year

This might be partly because many of us think we’ll end up spending more on Christmas presents this year.

Figures from MyVoucherCodes show that the average person expects to spend £377.98 on gifts between now and Christmas Day.

That’s about £32 more than they spent last Christmas.

Ten ways to ease the cost of Christmas

So if you’re looking to find ways to save money this festive season, what practical steps can you take?

1. Make a gift list and stick to it

Write a list of everyone you want to buy a present for and what you want to get them.

Then set a realistic budget for each person.

If you have a list and stick to it, you’ll be less likely to buy impulsively and able to keep track of what you’re spending.

2. Spread the cost

Don’t wait until the last minute. 

Buying a few gifts between now and Christmas helps you manage cashflow and keeps spending under control. 

It also means you have more time to spot deals and discounts, instead of scrambling around the shops in December.

3. Talk about gifts early

Start the conversation with family and friends. 

Agree on things like how much you want to spend and who you want to buy for.

For example, if money is tight, you might decide to just get presents for the kids, rather than every single extended family member.

It might feel awkward, but it’s worth it if it saves everyone time, money and stress later on.

4. Take advantage of early deals

Plan ahead for big discount days like Black Friday. 

But don’t forget to use price trackers and check deal histories to make sure you’re getting genuine bargains.

5. 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.

6. Set price alerts

If you’re waiting for a particular product, set up a price alert through sites like PriceRunner or Google Shopping. 

You’ll then get notified when the price drops, so you don’t end up panic-buying.

7. Use loyalty rewards smartly

If you’ve signed up for loyalty schemes like Nectar and Tesco Clubcard, take advantage of extra points events around Christmas, or maybe even use some of the points you’ve built up throughout the year.

8. Buy second-hand

You can find plenty of items that are as good as new on platforms like Vinted, eBay and Facebook Marketplace.

This could save you a fortune in the run-up to Christmas and let you get more for less.

Just remember to check seller ratings and order early to avoid delivery delays.

9. Pick the little bits up now

The cost of small things like wrapping paper, sticky tape, cards and stocking fillers can all add up.

So pick up these little bits early, especially if you spot value packs or good deals.

10. Watch delivery times

If you’re buying from abroad, especially trending items like Labubus toys or niche collectibles, then it could be worthy buying early.

This can help you avoid paying express delivery charges and reduces the chance of your purchases not arriving in time.