Parents cutting back elsewhere to keep the magic of Christmas alive

As we edge closer to Christmas, many parents are tightening their belts in other areas to make sure their children still feel the magic of the festive season this year.

New research from the all-in-one banking app thinkmoney shows nearly half of parents (46%) will prioritise their children’s Christmas experience over other areas of household spending.

The survey of 1,900 UK adults, including 804 parents, conducted by Savanta in October 2025 found:

• Average children’s present budget is £71.81 per gift.
• Across all households, Brits say they’ll save an average of £132 this Christmas through cutting back on things like nights out (35%), adult gifts (31%) and new clothes (26%).
• Nearly a third (29%) say they’ll socialise less to cover the cost, while 27% will skip their own treats and 22% will sacrifice trips or weekends away.

• One in ten parents (9%) say they’ll scale back on food or heating to make sure the big day still delivers.

The pressure to spend

More than two in five parents (43%) say they feel pressure to overspend at Christmas, with that pressure coming from their partner (32%), their children (29%) and even social media (20%).

Despite rising costs, 42% of parents say their biggest motivation is simple - a desire to give their children joy and preserve festive traditions, even when money is tight.

Wish list becomes a worry list

Almost three in four parents (72%) admit they’re dreading the Christmas lists this year. The most feared requests include:

• smartphones (28%)
• games consoles (26%)
• tablets and smartwatches (25%)
• designer trainers (21%)
• luxury trips (20%)

 Vix Leyton, consumer expert at thinkmoney, says finding balance is key.

“You can protect the magic without breaking yourself in the process. Be honest about limits early, look for second-hand or refurbished options, and set expectations that fit your reality, not social media’s highlight reel. Kids don’t remember the receipt, they remember the feeling.”

Ten budgeting tips to ease the cost of Christmas

If you’re looking to find way to save money this festive season, here’s ten budgeting tips that could help.

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

Head to the toy sales

If you’ve got lots of toys to buy, stay poised for sales. Many retailers have sales on toys on right now.

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’.