The festive period can cost us quite a lot of money. This can be a bit of strain on the household finances. There are so many things to buy for at Christmas, particularly if you have a family to buy for.
That is why we like to start early in the year on planning ahead for Christmas, and the first thing we consider is how to budget and save for Christmas.
How much money should you save for Christmas?
In the UK a typical household spends over £800 on Christmas. In the US the average household spend about $1000. Of course this is variable.
But as each household varies in income and expenses we would recommend looking at your own budget and figure out what is affordable for you. Remember to think about all holiday expenses such as gifts, food, drink, parties, entertaining, decorations, clothes, beauty treatments, and travel.
How can I save for Christmas?
Ideally you want to spread the cost of Christmas over a period of at least a few months. We know some people who start saving throughout the year. Pick an ideal length of timing for saving, then take the budget figure you have set out and divide per number of saving months.
For instance, if you Christmas budget is £1000 and you want to save over 6 months, aim to save around £170 a month. We like to set up a standing order from our main current account which transfers our Christmas savings amount over to a specific savings account on each pay day. This helps us ringfence that money specifically for the Christmas period.
How much does the average person spend on Christmas gifts?
In the UK the average person spends about £360 on Christmas gifts alone. With some spending up to £800 on Christmas gifts.
How much do you spend per kid at Christmas?
The average spend on a child’s Christmas gift in the UK is between £60 and £100.
How much do couples spend on each other at Christmas?
The average couple spends around £60 on gifts for one another.
What is the 4-gift rule?
If you are on a budget or wanting to rein back on Christmas gifts for kids this year, maybe try the 4-gift rule. The 4-gift rules is:
Something they want, something they need, something to wear and something to read.
Saving money for Christmas weekly
Some popular saving ideas include the 52 week savings challenge.
This is where you save over the entire year and each week you build on the amount. That is, in the first week you save £1, in the second week you save £2, and so on. You increase the amount by £1 each week and by the end of the year you will have saved £1,378.
You can do this for 11 months so you have your savings ready for December. This way you’ll have £1000.
Saving for Christmas 2020
There are many different and creative ways to save for Christmas 2020. We are going to be adding to this list as we find new ideas. The best idea is to plan as far in advance as you can, set a budget, create a separate savings account, and stick to saving regularly – either weekly or monthly.