The hidden cost of Christmas

How much do you expect to spend this Christmas? Well, it might be more than you think. And here’s why.

We often only think about the big expenses like gifts and food when we’re planning for the festive season.

But there’s still loads more costs that many of us aren’t factoring into our sums for Christmas.

How much are we spending on Christmas?

According to MoneySuperMarket, Brits are set to spend an average of £252 on Christmas presents this year, and £144 on groceries.

But the comparison site points out that other festive essentials “rarely get planned for”.

For example, we’re set to spend an average of £49.26 on wrapping paper and gift tags this Christmas, and £48.24 on cards and postage.

Even batteries are set to cost us an average of £42.34.

So that’s an extra £139 just on three things.

“When it comes to festive budgeting, it’s often easy to overlook the smaller spends that quietly stack up,” said MoneySuperMarket.

It’s also worth remembering how much costs have gone up across the board in the last few years.

In 2024, the cost of Christmas for an average family was £1,576.

But that’s set to reach £1,681 this year.

Budget for Christmas

When you’ve got so many expenses to juggle, it’s really important to set a budget so you can have the best possible Christmas - and avoid starting 2027 with a financial hangover.

Review your budget for the next few months and work out how much you’re likely to spend on regular expenses like household bills, groceries and subscriptions.

You’ll then have an idea of what’s left that can be used to pay for Christmas, what you can realistically afford and be able to set an upper limit on what you want to spend.

And once you’ve set a budget, make a point of sticking to it.

We’ve put together a guide to how to create a budget to help you get started.

It's also worth checking our tips on how to get your finances ready for Christmas.

With less than 100 days to go until the big day, there’s no time like the present.