Parents are planning a spending bonanza this Christmas, with some £2 billion spent on presents.
Despite the harsh economic conditions, mums and dads will spend an average of £168 on presents per child this Christmas, meaning some £2 billion worth of presents will be purchased in the next three weeks. Over half (53%) of all parents will spend the same or more on their children as they did last year, according to LV=.
But parents will attempt to balance the books by cutting their spending on other family members. The amount parents will spend on Christmas presents also rises the older the child gets. Kids under four will have £124 spent on them, rising to £201 for children aged between 11 and 18.
How much parents spend on Christmas presents also differs around the UK.
Those in the North East are the most generous and will spend an average of £226 on presents and stocking-fillers, £58 more than the national average.
Those in the East Midlands will be spending the least at £151 per child. Londoners are intent on splashing out an average of £162 on their sons and daughters this year.
This follows recent research that shows grandparents are also planning to maintain their spending this Christmas.
More than a third (36%) of grandparents plan to spend more than £50 on each of their grandchildren this Christmas.
"Children will be filled with glee hoping they get the latest toy or gadget this Christmas," said Mark Jones, head of protection at LV=
"And kids clearly come first despite the economic downturn as over half of parents are still intent on spending the same, or more, on their children as they did last year. With mum and dad forking out £168 on average per child, parents seem to be keen to make it a Christmas to remember, without scrimping too much on cost."
However, parents have been warned not to overstretch themselves this festive season.
"Many families will be feeling the financial strain of keeping their kids happy this Christmas, so it's important that parents try and look beyond the short term and also ensure that they have suitable budgets and long term financial plans in place," commented Mr. Jones.
Those worried about the cost of the festive season could save themselves a packet by reading Moneyfacts.co.uk's guide to 'Christmas on a shoestring'.
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