Budgeting For Christmas Now to Avoid Unaffordable Costs in December
The findings of our analysis prove that starting to prepare gifts and treats for Christmas 2 months before the festivities lowers the total cost to just 8.8% of your total income.
For those yet to begin, this may be the sign to start.
- UK Median Earnings & Christmas Spending: October vs December Compared
- Study Sources and Methodology
- Values of Average UK Christmas Spending
- Planning Since October Lowers Costs Significantly
- How Brits Spend For the Holidays By Region
- CasinoAlpha’s Conclusions: Smart Christmas Spending Techniques
UK Median Earnings & Christmas Spending: October vs December Compared
| Values analysed by CasinoAlpha | Average UK sums for 2024 |
|---|---|
| Median annual income | £34,963 |
| Median income for 3 months | £8,740.75 |
| Median income for 2 months | £5,827.17 |
| Median income for 1 month | £2,913.58 |
| Average Christmas spending per 1 person | £765.46 |
| Percentage of income for 3 months | 8.8% |
| Percentage of income per 2 months | 13.1% |
| Percentage of income per 1 month | 26.3% |
Study Sources and Methodology
We took the data of UK average earnings and Christmans spending from Statista, using a filtering system to get the latest data as accurately as possible. We mainly looked at 2023 data, as changes to these sums have not been significantly changed for 2024.
We also used the online tool Tax Calculator to see how different tax duties in the current legislation affected the median values for income and Christmas spending.
We then compared the earning and spending sums over a range of 1 to 3 months. The results clearly showed that allocating more time for gift shopping and event preparation lowers the total costs significantly.
Values of Average UK Christmas Spending
Our estimates reveal that Brits spend over a quarter, more specifically 26.3%, of the average month’s pre-tax income on Christmas festivities.
On average, each Brit spends around £765 on Christmas, including all the many expenses that come with the holiday season.
£765 should be compared in the context of a UK median monthly income of £2,914. This is considered a safe estimate, as the UK median yearly salary stands at £34,963.
After taxation is imposed, Christmas spending jumps to around 32% of the average monthly income, using the estimate of £2,390 net income.
Such expenses normally require a lot of preparation and clear-cut budgeting.
Planning Since October Lowers Costs Significantly
Spreading the costs of all Christmas-related costs starting the 1st of October would account for only 8.8% of your gross average monthly income in the next 3 months until the end of 2024.
If you are in the last-minute shopper category and leave all these plans for December, you might find yourself not being able to afford all the gifts, outfits and event expenses you had wished for.
This increases the chances that Brits can enjoy the festive season without missing out on their favourite traditions. Saving for Christmas can feel more achievable and less daunting.
How Brits Spend For the Holidays By Region
| UK’s Main Regions | Average Individual Christmas Spending | Spending Percentage from 1 Month’s Income |
|---|---|---|
| South West | £791.25 | 28.4% |
| South East | £858.87 | 28.2% |
| Wales | £757.72 | 28.1% |
| East | ££803.54 | 27.7% |
| East Midlands | £728.57 | 27.6% |
| North West | £745.24 | 27.1% |
| North East | £698.01 | 26.8% |
| London | £973.38 | 26.3% |
| Yorkshire and The Humber | £691.96 | 26% |
| West Midlands | £710.34 | 25.8% |
| Northern Ireland | £699.51 | 25.5% |
| Scotland | £752.10 | 25.4% |
On average, all across the UK, by combining all regions, each person spends £765.46, which totals 26.3% of their monthly income.
Our data shows that the South West ranked top, spending a staggering 28.4% of a month’s earnings. The London area is estimated to match the UK average.
People in Scotland spend about 25.4% of their median monthly income on Christmas shopping.
Scotland is spending the least amount of money, but the numbers and budget effects are still high.
CasinoAlpha’s Conclusions: Smart Christmas Spending Techniques
Planning ahead is always a good idea for a balanced budget. We recommend that Brits use caution in not overspending and use their spare time to figure out what they want to do.
Our senior author, Elena Buzincu, sums up the conclusions of CasinoAlpha’s research and report:
“Thinking about Christmas expenses and budgeting may seem like it dulls the festive cheer, but it may actually help make the holiday feel more enjoyable and stress-free. By starting a little earlier, you give yourself the space to avoid last-minute panic and the costs that come with it. A bit of planning now means less worrying later, so you can relax and indulge in the festivities when they roll around.”
