How Much Should You Spend on Christmas Presents?

When it comes to budgeting for the festive season a big question is how much you should spend on Christmas presents for family members.

The answer to that is always going to be: what you can comfortably afford to do so without getting into any debt.

Let’s take a look at what the average Brit is actually spending on their Christmas presents to give you an idea.

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Thrifty Christmas tips

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How much do people spend on Christmas gifts?

A survey by YouGov found that the average person budgeted £642 for Christmas in 2022, with most of that budget – £300 – going on gifts.

Of course your budget may be significant higher or lower than this depending on your own personal circumstances.

How much should I spend on Christmas gifts for kids?

Spending roughly £100 to £150 per child will mean you can buy them a “big present” along with some smaller gifts that go into their stocking.

The Christmas gift-giving rule of four really helps. Under this rule you buy them something they want, something they need, something to wear and something to read.

It means they receive four nice gifts with a bit of variety.

How much should I spend on each family member for Christmas?

When budgeting for Christmas gifts look to allocate most of your budget to your closest relatives. So for example your spouse, parents and siblings budget may be between £50 and £150 each, whereas relatives you rarely see would be around £10 each.

If you’re anything like me you will want to spend the most money on treating your kids to great gifts at Christmas. The lion share of my Christmas budget always goes on the children.

You may also want to consider not doing gifts for adults.

We’ve done this several times and it saves so much money – plus when you’re struggling to choose a gift for someone who has everything spending the cash just doesn’t seem worth it.

Example Christmas shopping budget

When you sit down to figure out your Christmas budget it can help to look at what you spent last year. This gives you an idea of typical spending for you.

If this took you over budget or was beyond what you can afford then you’ll be able to set a more affordable budget for this year. If it was just about right for what you can afford then stick to that amount and then allocate your spend to each family member.

Here’s an example Christmas shopping budget, based on my own family.

Some years I combine the budgets for my parents, so that I can buy them one really nice gift that they can both use.

Kids £300
Partner £75
Mum £50
Dad £50
Nephews/nieces £60
Aunt and uncle £30
Total: £565

This gives you an idea of how you can divide your budget between your relatives, prioritising your spending on the relatives who you spend the most time with and are closest to.

How to set your budget

Start by figuring out exactly how much you can afford to spend. It’s a good idea to start saving for Christmas in January – setting aside as much as you can afford every month so that you are prepared for December.

You may find a savings challenge will help you with meeting your goal. It’s best to set a savings goal that is affordable for you, within the limits of your income and existing outgoings, as that way you’re more likely to succeed.

Once you have your budget you then should write down all of the people you need to purchase gifts for at Christmas.

Now you can start to allocate set amounts to those people. As I said above look to allocate larger amounts to your closest relatives and for family members who you rarely see you will spend the least.

Once you have this in writing you can start to focus on what you can actually afford to buy them. It’s so useful to get the budgeting part done first, as it helps keep you on track with your spending.

How to stick with a budget for Christmas gift shopping

If you’re on a tight budget you can still treat your relatives at Christmas without having to worry about a post-Christmas debt hangover!

Set the budget and stick with it

The best way to avoid overspending at Christmas is to set a budget and stick with it religiously.

Have a clear list and plan who you want to purchase gifts for and then make sure your spending for each relative tallies up to fit your budget.

Keep a record of your spending as you go, noting down what you have bought for people and how much you spent, to keep you on track.

Avoid impulse purchases

If you love to browse and pick up gifts on the spur of the moment this can put you at risk of going over budget.

Try stepping back and researching whether you can find an item cheaper elsewhere, or if there’s an equivalent product on the market that costs less.

You could try writing down your ideas for what you want to buy people ahead of purchasing, so that you can research the prices online and check it aligns with your budget.

Give yourself plenty of time to shop

Aim to have your Christmas shopping done by the end of November. This way you won’t be buying frantically at the last-minute, which can put you at risk of going over budget.

Black Friday tends to take place around the week of November 25. You may find some of the things you want to purchase people go into the sale, so it’s worth planning ahead for this to see if you can get some items discounted.

Consider homemade and personalised gifts

You can save a lot of money on buying presents by making something.

One year I made everyone in my family homemade chutney. It cost around £60 for the ingredients and jars and lids to be gifted to 10 relatives, so it saved me a lot of money on my budget.

Another great personalised gift is a family photo album. You can either get pictures printed and arrange them yourself in an album or create a printed album. These are relatively inexpensive but are always much loved when given to parents and grandparents at Christmas.

Use cash back when shopping

If you do most of your Christmas shopping online it makes sense to take advantage of cash back sites.

Many big brands, such as John Lewis, have partnerships with cash back websites, such as Top Cashback. This means that when you make a purchase from John Lewis via your Top CashBack account you get a slice of your spend back.

Boost your income

If you’re not happy with your Christmas gifting budget but can’t afford to increase it then look for ways to increase your income.

Some brilliant ways of making money for Christmas include:

Survey sites – I prefer Prolific as it has a low payout threshold unlike other sites.
Amazon Flex – you can pick up flexible delivery shifts with Amazon with lots more available in the run up to Christmas.
Food delivery – companies such as JustEat and Deliveroo need drivers to get food from takeaways to customers’ front doors. This work is also flexible.

I’ve got lots more side hustle ideas to boost your income here.

Final thoughts on Christmas gifting budget for family members

I hope this has helped you figure out how much money you need to allocate to Christmas gifts for your family members.

My Christmas gift budget for family has changed a lot over the years since our family expanded as me and my brother started having kids of our own.

Although my budget is bigger overall these days compared to 15 years ago when I was on a junior reporter’s salary, my spending is much more focused on the younger members of the family. That’s because I personally like to spend more on treating the kids over the festive season – they appreciate the Christmas gifts the most!

There have been years where we have agreed among the adult members of my family to only buy gifts for the kids. This has really helped in years where we have been trying to save money.

I have to say it worked out really well and myself and my husband still have an agreement that we don’t buy each other big gifts at Christmas, just something simple for less than £20.

Start with how much you can actually afford, and work it out from there. You may need to get creative with budget gifts to help you stick to your spending limits, but if you plan ahead and do your research to find the best prices then you will be absolutely fine!