According to research, the cost of living crisis is causing people to tighten their spending on Christmas shopping this year. It is likely to affect how much we splash out on presents for our loved ones.
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How much do we spend on Christmas presents?
According to research by Finder, the average British adult will spend £430 on Christmas gifts in 2022, a decrease of £119 (22%) from 2021’s budget amid the cost of living crisis. This is also a decrease of £47 (10%) from 2020’s budget and £84 (16%) less than Christmas spend in 2019.
The United Kingdom will spend £20.1 billion on Christmas gifts in 2022, 21% less than in 2021 (£25.5 billion).
9 in 10 (89%) Brits will buy Christmas gifts in 2022 – this totals 40.6 million people.
Men are projected to spend £493 on gifts in 2022, while women plan to spend £370.
How much should I spend on Christmas gifts for family members?
According to Lena Gott, a blogger from What Mommy Does, the overall spending depends on your budget. The general rule is that the closer the family member is, the more you splash out on a present for them.
For example, £5 to £15 is a good range for family members you don’t see very often.
Between £25 to £40 is good for closer relatives like nephews and cousins.
For immediate family members like brothers, sisters, children, and parents, you could spend between £50 to £100.
The spending also depends on the size of the family, so budgeting is very important for not going into debt.
If you’re not sure where to start, a good rule of thumb is to look at your previous years' average spending. Once you know the final amount and the number of people you will be buying gifts for, you can set a limit per person.
With the cost of living crisis, many people opt out of purchasing presents to non-immediate social and family circles, and many even consider no-gifts Christmas with children. Can’t afford to buy Christmas presents? Here is what to do.
Sources used:
- Finder: 'Christmas shopping and spending statistics UK | 2022'
- What Mommy Does: 'How much should I spend on Christmas gifts for family members?'
