The cost of Christmas: how to make seasonal savings

There is only one payday before Christmas but there is still time to make Yuletide savings. 

From presents to stockings, turkeys to trees, households spent an average of £560 on Christmas last year, according to Legal & General, a near record total of £15.7 billion. 

Christmas spending is predicted to be lower this year because of the cost-of-living crisis. Families are £3 billion worse off compared with last year due to the economic climate, said Retail Economics, as "high inflation" will erode spending power for many. 

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Some Britons are planning to cut back on parties and trips out this Christmas, said The Guardian, as the cost-of-living crisis continues to "put a dampener on celebrations". 

A survey by TopCashback even found more than half of UK adults are worried they won't be able to afford Christmas this year, but there are things you can do to "alleviate the pressure". 

Here is how to cut the cost of Christmas so your festive days may be merry and bright. 

Cut back on Christmas presents

Brits spent typically spent £300 on Christmas presents last year, according to YouGov. 

But as nice as it is to give or receive gifts, Christmas "isn't a retail festival", said MoneySavingExpert. Beyond grandparents and parents, consider who you are giving presents to or receiving them from amid an "ever-widening glut of friends, extended family and colleagues".

The financial website suggests a "no unnecessary present pact" with friends, or a £5 or £10 cap on gifts. 

If you are buying gifts, "keep your eyes peeled" for deals and discounts, Wealthify advised, as being smart with your purchases "could get you the same things for less". 

Set a budget for all your Christmas expenses to limit your spending, said The Times Money Mentor, as "this can be a good way to limit unnecessary outlays and save money". 

Google Shopping and PriceSpy can help you track prices, and you can use websites such as Quidco and TopCashback to get money back on your spending at certain retailers. 

DIY decorations

The average price of a Christmas tree last year was £88, according to Creditfix, with outdoor lights costing almost £100. 

You don't have to buy decorations though, said TopCashback, and you could save money with a DIY Christmas by making your own wreath, baubles or door ornaments. "This even doubles up as a fun activity with the kids", added the cashback website, and you could get ideas from craft influencers on Instagram or TikTok. 

This could also stretch to a homemade Christmas tree, The Times Money Mentor stated, "if you have good crafting skills". Visit Pinterest for inspiration, added the financial website, "using everything from corks to balls of wool". 

Christmas dinner

Shoppers face paying up to 20% more for their Christmas turkey this year, said The Grocer, due to "stubbornly high production costs" across the poultry sector. 

But you can save money on turkey and all the trimmings by shopping around. 

The "most cost-effective" Christmas lunch can be purchased from Aldi, the Daily Express reported, where you can buy everything you need including main courses, drinks and desserts for £89.18. 

The newspaper cited research from wealth.co.uk which found Aldi was the only supermarket where you can "feed six people at Christmas for under £100". 

It is still worth shopping around though as "other supermarkets fare better for different items". For example, Tesco was "cheapest for stuffing mix", while Morrisons had the best prices for Maris Piper potatoes and Christmas pudding. 

Supermarket loyalty schemes such as Tesco Clubcard or Nectar at Sainsbury's can also help save "big money" in the long run on your shopping, said Unbiased. It is worth signing up "to make use of the extra Christmas costs and rack points for future savings".