Christmas is certainly a magical time of the year, often brimming with celebrations, indulgent meals, and happy moments with your loved ones.
Though, amid the excitement, you may not have paused to consider how much the festive season truly costs.
According to the Independent, in 2023, the average UK household was predicted to spend £1,811.70 on Christmas festivities.
Compared to the £229 average spend 30 years ago, and adjusting for inflation, the cost of Christmas has risen by 290%.
If you’re wondering how much Christmas might cost you this year, continue reading to find out.
The cost of Christmas will depend on how you prefer celebrating the festive period
How you choose to celebrate the festive period will significantly affect the overall cost.
Some might prefer a quiet day at home with family, complete with a home-cooked meal and some classic Christmas films. Others might decide to dine out, while some may go as far to escape the winter chill by travelling abroad.
Each choice comes with its own financial implications, and understanding the following breakdowns could help you budget more effectively.
Staying at home with your family and cooking a lavish meal
For many, the idea of venturing out on Christmas Day doesn’t seem appealing compared to the comfort of staying at home.
A traditional Christmas at home often includes exchanging gifts in the morning, a hearty meal in the afternoon, and perhaps an evening spent playing board games or watching festive films.
While staying at home might seem like the cheaper option, costs can quickly add up.
Finder reveals that the average person in the UK plans to spend £596 on Christmas presents in 2024, with 90% of people intending to buy gifts for loved ones.
Collectively, this adds up to £28.6 billion spent nationwide on gifts alone. Though, there are other expenses to consider, too.
Preparing a traditional Christmas dinner for 8 to 10 people could cost you anywhere from £150 to £200. According to Credit Union, you might expect to pay around:
- £50 to £70 for turkey and trimmings
- £30 to £40 for sides and vegetables
- £20 to £30 for desserts
- £50 to £60 for drinks.
Of course, these figures could rise if you choose premium ingredients, or even add a few extra bottles of champagne to the mix.
Combined with the cost of gifts, your total spend could easily reach around £770 or more, and that’s without accounting for any additional decorations, party games, or festive treats.
Going out for a tasty meal
If the idea of cooking a lavish meal sounds exhausting, dining out could offer a stress-free alternative.
Indeed, avoiding the early morning meal prep and the inevitable mountain of washing up afterwards could make Christmas Day far more relaxing.
This option is certainly growing in popularity, with Nisbets reporting that 2 million Brits planned to dine out on Christmas Day in 2023.
The cost, however, is not insignificant. A three-course meal with a bottle of prosecco at a gastro pub for a family of five outside of London could cost around £164 – £32.80 a person.
While this does reduce the hassle of shopping and cooking, you’ll still need to account for gifts, which could bring your total expenditure to around £760.
Travelling for the festive period
Not everyone wants to spend Christmas at home. For many, the festive season is the perfect opportunity to travel – whether that’s across the country to reunite with distant family members or to escape the winter chill altogether.
If you’re planning to travel within the UK, the cost will largely depend on your mode of transport. Tempcover estimates that a trip from London to Edinburgh could cost:
- £97.30 by train
- £45.99 by coach
- £71.46 in fuel if you’re driving.
Meanwhile, a shorter trip, such as from London to York, might cost:
- £45.60 by train
- £33 by coach
- £34.96 in fuel.
If you’re seeking sunnier climes, it might come as no surprise that costs rise considerably. According to the Independent, the average spend for an overseas trip during Christmas in 2023 was £2,427.
Around 30% of respondents reportedly planned to spend at least £3,000, while 7% intended to spend over £5,000. While escaping the cold can seem tempting, it certainly comes at a cost.
Get in touch
Although costs might be high for Christmas, understanding potential expenses and budgeting appropriately could help you create a memorable festive season, all while keeping your spending in check.
If you’re looking for some support managing your finances so you can relax and enjoy the festive period, then we can help.
To find out more, please contact us by email at info@investmentsense.co.uk or call 0115 933 8433.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
