Santa to trouser a third of our Christmas pay cheque

We are set to spend over £400 on Christmas presents this year, according to a survey by Fool.co.uk.

That’s almost a third of a month’s salary for many of us.

We spend £419 on presents for an average of 10 people
One in 20 people spend more than £1,000 to create the perfect Christmas
One in seven people are happy to give homemade presents

Typically we fork out £27 on each gift for our friends and family, but we don’t want them to spend quite as much on us. We would much rather they spend closer to £19.

Four out of ten people (40%) believe that Christmas should cost less than £200, and one in twenty (5%) spend more than £1,000 to create the perfect Yuletide. But not everyone wants to push the boat out at Christmas. One in seven people (15%) reckon it should cost no more than a handful of nuts and an orange to fill their loved ones’ stockings!

However, one in seven people (15%) believe that it really is the thought that counts – they would happily give homemade presents. But men are more cynical. More than half (51%) say hunger for consumer goods has eclipsed goodwill.

People with kids spend around £80 more, and the cost of Christmas seems to fall on the shoulders of mum. Women spend an extra 20%, and are more likely to feel harassed by the demands of the festive season than their partners.

But not everyone believes that Christmas is about spending lots of money. One in three (32%) reckon it is still a time for bringing people together, and one in eight (13%) feel that social and financial pressures outweigh the pleasures of Christmas. Four out of ten people (40%) say the Christmas message has been lost and just long for a family holiday.

David Kuo, Head of Personal Finance at Fool.co.uk, says: “Christmas season can be a time of financial pressure for many, especially for people with large families.

“What’s more, spending 2% of our annual income on one day’s jollies can give our finances a proper stuffing unless we have budgeted for it carefully. So if you know you like a lavish Christmas, you should start saving long before you shop. And if you must use credit, don’t fall into the trap of buying now and paying through the nose for it later.

“Nobody wants to be seen as Ebenezer Scrooge. But without proper budgeting January could be haunted by the ghost of Christmas past with credit providers tucking into our leftovers with some relish.”