How much will Christmas set you back this year? Well, according to research from American Express, the average cost of this year's festivities is set to be £767 per person – a pretty tidy sum, which is why it's so important to make sure you're prepared for this season's spending.
The price of a merry Christmas – and how to keep it in check
The £767 total includes the cost of presents, hosting and all celebrations, so it's no wonder it quickly adds up. Splashing out on presents for loved ones still accounts for the lion's share of the Christmas budget, with consumers spending an average of £424 each. A further £146 will be spent on hosting friends and family, and just shy of £200 will go towards other festive treats, such as attending parties or going to the panto.
It's certainly a significant amount of money, and some people are hoping to rein in that spending as much as possible. The survey found that 66% of respondents hope to keep this year's costs on par with previous years, while 19% are planning to cut back, aiming to spend an average of £178 less this festive season.
Money-saving tactics of those planning to keep costs under control include spreading the cost by buying gifts throughout the year – a trick employed by 60% of those surveyed – while one in three plan to take advantage of special offers from retailers. A further 28% have agreed a spending cap on present-buying, while 71% have set a budget for the festivities.
A particularly savvy 31% will ease the cost by redeeming loyalty points or rewards, saving themselves an estimated £74 – or a tenth of their average Christmas spend. This could be achieved by a variety of means, be it through redeeming enough points to buy a few gifts at selected retailers, or even putting the whole spend on a cashback credit card.
Nicholas Stefanovitz, vice president of UK Consumer Cards at American Express, said: "Our research shows the majority of people will be keeping a tight rein on their purse strings this Christmas, cutting costs where they can but also taking advantage of rewards and offers to make their spending go further. For savvy shoppers, using a card that offers cashback or rewards is a great way to make your cash work harder and get something back in return for your spending this Christmas."
Compare cashback credit cards
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.