December 8th 2024.
With Christmas just around the corner, many households are busy preparing for the festive season. However, with the cost of living continuously on the rise, this year's Christmas may prove to be a challenging one for families across the nation. From energy bills to grocery expenses, families are looking for ways to cut costs and make ends meet.
But as the big day draws near, it can be quite a task to keep track of where all the money is going. How much does the average family actually spend during Christmas? According to the Bank of England, the average monthly expenditure for households in the UK is £2,500, but during December, that amount increases by more than £700. In fact, the BoE reports that the average family spends an extra £740 during the holiday season, bringing the total to a staggering £3,240 - a 29% increase.
This year, a study by Finder predicts that Brits will spend an average of £923 per person on gifts, food, travel, and socializing, resulting in a whopping total of £46.4 billion. And while the average spend on gifts per person is £596, Millennials are expected to spend £871 each, with Londoners topping the list at a staggering £936 per person.
But what exactly are families spending all this money on? According to data from the BoE, our spending habits drastically change during the festive period. Items that only make up a small portion of our expenses for 11 months of the year suddenly see a significant increase in December. For example, spending on video and music equipment and books jumps from an average of 0.23% to a whopping 95%. Book sales double, while sales for computers and phones increase from 1.1% to 61%.
Of course, no Christmas celebration is complete without delicious treats. Families tend to stock up on festive favorites like mulled wine and mince pies, resulting in a 20% increase in food expenses and a 38% increase in alcohol expenses during the holiday season.
Interestingly, while spending on certain items skyrockets, it also decreases in other areas. For instance, expenses for goods such as paints and hardware go down by 21%, as families tend to postpone these purchases until after the festive period.
With all these figures in mind, it's no surprise that December is an expensive month for most families across the UK. As we gear up for Christmas, let's keep these numbers in mind and find ways to budget and save where we can. After all, the most important thing about the holiday season is spending quality time with loved ones, not how much money we spend. What are your thoughts on Christmas spending? Share your views in the comments below.
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