One in five to up their Christmas budgets this year

ONE in five festive enthusiasts will be upping their Christmas budgets this year – and they plan to spend on average 30 per cent more than they did last year.

A study of 2,000 adults who celebrate Christmas found 47% of these are planning to spend the extra cash because they are eager to treat their family and friends.

While 40% simply want to make this Christmas extra special.

For 72%, the extra money will go on presents, and 66% will increase their spend on food and drink, while 31 per cent will be splashing out on hosting Christmas get-togethers.

Overall, the average budget for 2024’s festivities is over £650 this year, and 76% will be spending the same, or more than they did in 2023.

To help make budgets stretch even further, 45% plan to redeem loyalty points and rewards when buying gifts and food, and 26% have spread the cost by buying things throughout the year.

Paul Stokes, from M&S Credit Card, which commissioned the research, said: “Christmas has been a challenging time for many over recent years, with many families having to tighten their belts.

“While those challenges haven’t disappeared entirely, it’s encouraging to see that many people feel in a better position this year to maintain or even increase their festive budgets.

“Savvy financial planning plays a big role – whether it’s carefully saving throughout the year or using loyalty points to stretch spending power.

“This Christmas, households are finding ways to enjoy the season and make it special without overextending themselves, we hope our credit card customers enjoy using their M&S Rewards vouchers to treat themselves and others.”

It also emerged those maximising loyalty points and rewards this year will redeem an average of £104 this Christmas.

With 87% of these saying it will allow them to get more from their money at Christmas.

And it’s not just money people are getting savvier with, as 46 per cent expect they will have all their gift shopping sorted two to three weeks before the big day.

As two in three (65%) admit they like to get their shopping sorted sooner rather than later.

For 62% of these, it helps to reduce stress in the build-up to the big day, and 52% just appreciate having more time on their hands in December to enjoy the festive season.

Although, 31% reckon getting started early gives them more time to snag the best deals, according to the figures conducted via OnePoll.

Paul Stokes added: “The best Christmases often come down to proper planning, and the research highlights how important it is to approach the season with a clear strategy.

“Creating a budget for your money is only part of the picture – it’s also about getting ahead with gift and food shopping to avoid last-minute stress.

“By starting early and staying organised, families can not only enjoy a smoother lead-up to Christmas but can also make their budgets go further, helping to make the season that little bit more special.”